Many people in their 20s and 30s are saddled with credit card debt or student loans, sometimes thinking they’ll figure it out later. But what happens when that debt piles up to nearly a million dollars? That’s the reality Channing, 29, of Washington, D.C., faced during an episode of The Dave Ramsey Show.
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Channing and her husband were nearly $1 million in debt, a figure that quickly caused Ramsey to take a tough stance. Sure, he’s seen situations where people are pushing their limits in debt, but at just 29 years old, this was particularly alarming to Ramsey.
Channing, who recently got married, explained: “My husband and I are in about a million dollars’ worth of debt and we want to know how to get out of it without filing for bankruptcy.” The breakdown included $335,000 in student loans, $136,000 in credit cards and $44,000 in personal loans. Their combined household income was about $230,000 a year.
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Ramsey didn’t hold back. After calculating the staggering numbers, he addressed the couple’s situation bluntly. “You’ve been living at ten times the rate you’re going to be living for the next three years,” Ramsey said. “I’m preparing to destroy your life as you know it.”
“They’ve gotten used to spending like they’re in Congress,” he chided them. It was clear to him that their lifestyle needed a complete overhaul. Ramsey stressed that their financial habits would have to change drastically, stating, “They’re not going to see the inside of a restaurant unless it’s their side hustle or they’re serving someone they work with during the day.” He added, “They’re going to live on beans and rice, rice and beans.”
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Ramsey went on to emphasize the emotional and spiritual challenges ahead. “Your friends will think you’ve gone crazy and your mother will think you need therapy,” she warned, adding that both Channing and her husband would have to stop worrying about what others think if they wanted to successfully tackle their debts.
She also shared a personal connection to her situation, saying, “This is exactly what I did when I was 20. I bought and bought a lifestyle that was 5 or 10 times more expensive than what I had. It was all because of the garbage inside me that led me to do that.”
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Ramsey’s advice wasn’t just about cutting expenses, but about confronting the mindset that had led them to make financial mistakes. “The problem is what’s going on inside of you,” Ramsey said. “You’re on a suicide mission right now.”
The difficult conversation ended on a hopeful note, however. Ramsey assured Channing that while the road would be difficult, it was possible. “But you can do it,” he said. “I know that. I’ll help you.”
Channing and her husband are now facing a major lifestyle change to get out of their nearly $1 million debt, with guidance from Dave Ramsey pointing them toward a more financially stable future. Sometimes there is debt, but at least they are taking steps to address the problem and make changes before they are forced to resort to more extreme options, like bankruptcy.
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This article Dave Ramsey Tells 29-Year-Old Woman Who Is $1 Million In Debt And Spends Like She’s In Congress: ‘I’m Getting Ready To Destroy Your Life As You Know It’ originally appeared on Benzinga.com
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