A caller to Dave Ramsey opened 18 credit cards after bankruptcy and is $118,000 in debt “to impress people.” Her husband has no idea
A recent call on The Ramsey Show featured a woman who opened up to Dave Ramsey and admitted that despite filing for bankruptcy in 2019, she fell back into debt (to the tune of $118,000, not including the mortgage) and that her husband completely unaware of the situation. mess they’re in.
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“We are the model for trying to impress people,” the caller confessed. After purchasing a new house, she felt pressured to fill it with “nice things,” but this impulse turned into financial chaos, leading her to open a staggering 18 credit cards to finance the lifestyle she envisioned. that they needed to maintain.
Her husband, who earns $35,000 a year, has no idea about her financial problems because, as she explained, “he doesn’t even have access to [to our finances].” They take home $125,000 a year, plus another $15,000 from a side job, but their spending habits have left them drowning in debt, all out of a desire to project an image of success.
The caller revealed that the $118,000 in debt was spread across several sources. He owes $1,300 to the IRS and $9,500 is tied up in “pay in 4” payment plans like PayPal (NASDAQ:PYPL) and Klarna. Most of the debt – $116,000 – comes from online personal loans through platforms such as Prosper. On top of that, they have a $40,000 car loan and $5,500 in credit card balances.
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This complicated combination of sources of debt shows how far the situation has gotten out of control. The accumulation of loans, payment plans, and lines of credit has resulted in an impossible financial disaster. The car loan alone is already a big problem and with all the high interest loans and credit card debt added up, it’s really hard for them to make any progress without making big changes.
As always, Ramsey didn’t sugarcoat his advice. “You are not going to be free or heal alone,” he told her. The key, according to Ramsey, is teamwork. “We need two things relationally: One is to go to him and say, ‘Honey, we’re in trouble – again – because I didn’t say no and you weren’t involved.’”
The caller admitted that his spending habits were deeply tied to his need for validation, saying, “It comes from my childhood,” but that didn’t sway Ramsey, who responded with his trademark tough love: “You’re too old to die.” “. and rich in terms of income to act like a 14 year old girl who needs affirmation. It’s time to be a grown woman.”
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To get out of this financial hole, Ramsey outlined a clear but intense plan: they must make a monthly budget together, sell everything that is not necessary and drastically cut back on their lifestyle. “Sell everything, everything that is not tied,” he said. The goal is to embrace what Ramsey called “scorched earth” and live for 18 months: essentially, living as frugally as possible and funneling every available dollar toward paying down debt.
One of the most important takeaways was the importance of not trying to impress others. According to Ramsey, wealthy people often reach the point where they “don’t give a shit what other people think.” And for the caller, ending the cycle of debt requires learning to ignore the opinions of others. “You have to practice not having pretty things and having people see you,” co-host Dr. John Delony added, encouraging her to face her fears about appearances.
Image via Shutterstock
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This article Caller Dave Ramsey opened 18 credit cards after bankruptcy and is $118,000 in debt “to impress people.” Her husband has no idea originally appeared on Benzinga.com
