We Have $90,000 In Debt And No Money!

Summary

In this episode of The Ramsey Show, a woman calls in seeking advice on managing over $90,000 of debt incurred due to her husband's struggling business. With her husband considering low-paying positions and their family nearing financial crisis, they discuss immediate actions to stabilize their situation. Emphasizing short-term financial priorities and exploring income opportunities, the show underscores the importance of taking swift, decisive action in crisis, all while maintaining family dignity and assurance of future financial health.

Highlights

• A creative budgeting app is suggested to help manage finances. 📲
• The caller's husband, a business owner, is advised to seek multiple jobs instead of exploring an electrician apprenticeship to stabilize immediate finances. 💼
• They discuss whether selling their home is necessary and explore alternatives like increasing income first. 🏠
• Maintaining necessary expenses like food and utility bills is crucial, even before debt payments. 🍲
• The caller receives encouragement and reassurance that pursuing aggressive income strategies can improve their situation. 🌟

Key Takeaways

• Don't wait too long to pivot from a failing business. Avoid going deeper into debt. 💡
• Extreme circumstances call for extreme measures. Get creative and hustle to find work. 💪
• Prioritize immediate needs—food, utilities, mortgage—and let go of non-essentials for now. 🏡
• Support your partner emotionally in tough times; it strengthens the family during crises. ❤️
• Using financial coaching can provide guidance and strategic support in tough financial times. 📚

Overview

In this intense episode of The Ramsey Show, the spotlight falls on a young family grappling with over $90,000 in debt due to a business downturn. The caller, a stay-at-home mom with three kids and another on the way, finds herself panicking as her husband's business falters, leaving their finances in shambles. The segment offers an emotional yet practical discussion on confronting financial chaos head-on.

Dave Ramsey provides firm advice on prioritizing immediate financial obligations over long-term dreams like a new career path. It's all hands on deck as he insists the caller's husband secure multiple jobs, from construction to possibly working at Walmart. This urgent call for action aims to keep the family's essentials intact—food, utilities, and housing—while a financial coach helps guide them to a more stable future.

The show also dives into deeper emotional layers, emphasizing the couple's need to support each other emotionally. Despite the financial strain, holding the family unit and assuring one another of mutual support is crucial. With strategic steps and emotional resilience, the episode paints a hopeful picture that, despite dire circumstances, they can emerge stronger and debt-free.

Chapters

• 00:00 - 00:30: Introduction The chapter titled 'Introduction' presents a personal story shared by the narrator about serious financial challenges. The narrator's husband, a business owner, is struggling as his business faces failure, resulting in considerable debt accumulated on personal and business credit cards, as well as a truck and trailer. The total debt mentioned amounts to over $90,000. Additionally, the narrator reveals that they own a home with an outstanding mortgage balance of approximately $175,000.
• 00:30 - 01:30: Assessing the Debt and Financial Situation In this chapter, the characters discuss their current financial and debt situation, focusing on their home. They have a 4% interest rate on their home, which is estimated to be worth about $250,000 if they were to sell it. The conversation revolves around the possibility of selling their current home to downsize to a smaller place or to keep it. Additionally, it's revealed that one character is a stay-at-home mom, while the other is considering getting a local job, possibly as an electrician.
• 01:30 - 03:30: Strategies for Income Generation The chapter discusses various strategies for income generation, focusing on the difficulties faced when traditional income sources are unreliable. It illustrates a scenario where individuals rely on apprenticeships that pay little to nothing, and describes the struggles of not receiving a paycheck for months. The conversation touches on survival strategies, such as utilizing a stocked pantry, accessing local food pantry resources, and managing utility payments with limited funds. The narrative hints at the precariousness of financial stability and the necessity of support systems like WIC for sustenance.
• 03:30 - 05:30: Financial Prioritization The chapter titled 'Financial Prioritization' discusses the challenges of finding well-paying jobs in Eugene, Oregon, despite there being a lot of construction work available. The conversation highlights financial struggles, specifically mentioning having only $25 in a checking account and the dilemma of accepting low-paying jobs. Although the person being discussed is skilled in construction, finding a job that pays around $30 an hour is still seen as fortunate, suggesting limited local opportunities or market saturation.
• 05:30 - 08:30: Long-term Financial Considerations The chapter discusses the complexities and challenges of managing financial stability and employment for individuals with families, specifically focusing on electricians and their hours. It highlights the strains on individuals who might take on multiple jobs and the stresses faced by their spouses, emphasizing the need for practical solutions in times of financial insecurity. The conversation reflects the reality of making tough decisions, such as working night shifts at places like Walmart, to ensure financial survival.
• 08:30 - 10:00: Emotional Support and Conclusion The speaker highlights the urgent need for action rather than inaction in the face of difficulties, emphasizing that doing nothing is not an option. They express a practical mindset by rejecting the idea of pursuing an apprenticeship that could lead to financial instability. The focus is instead on finding immediate sources of income. A metaphor is used to illustrate their point, comparing the need for quick action to save a sinking boat before thinking of buying a new one. The chapter suggests immediate steps such as working multiple jobs in construction or at Walmart to address the financial crisis. The overall tone is one of pragmatism and urgency, aiming to provide emotional support and a concrete plan during challenging times.

We Have $90,000 In Debt And No Money! Transcription

• 00:00 - 00:30 [Music] brought to you by the every dooll app start budgeting for free today so my husband uh he's a business owner and frankly the business is tanking and um he's racked up a lot of debt on both personal cards and um business cards and between that and his truck and trailer we got a little over 90k in debt um that we're looking at um we have a home that we own we owe about one 75 still on it
• 00:30 - 01:00 and it's and we have about a 4% interest rate um or estimates are saying that our home is worth about 250 if we tried to sell it so I was just going to see if you would advise us selling a home and going into a smaller place or hanging on to it what do you make nothing I'm a stay-at home mom what's he gonna do um he's looking at just getting a a local job here possibly electrician
• 01:00 - 01:30 apprenticeship but I mean we'd be making hardly anything and he's not gotten a paycheck from work in probably three months how are you eating um we have we had a stocked Pantry that we've been working our way through and there's a food pantry locally that we've been you know going through in Wick how you paying the light bill um we had a last month but I don't know if we're going to this month okay um
• 01:30 - 02:00 you got about $25 in your checking account yeah so why would he take a half butt job making nothing um our area is just there's not a lot we've looked um he's very skilled he works in construction but even with that he'd be lucky to get a $30 an hour job um why Eugene Oregon is not like not doing construction there's construction all over the place around you there is yes um and he can maybe try and get on
• 02:00 - 02:30 two Crews but just hours for that you know most crews are on the same hour you know they would both be daytime time but an apprentice electrician is not going to make anything you said that so why would he even consider that go get on three different Crews and work like a maniac you have $25 and your wife scared out of her mind you're about to not have electricity there's a Walmart Eugene isn't there yes yes can you go throw boxes on the night shift like you got two guys here who've got wives and kids and I can't fathom the situation you're
• 02:30 - 03:00 in right now not doing anything is not an option right and I'm going to invest in my future by becoming an apprentice and starve to death no thank you no okay we need money just trying to think of a new career to start now money y drowning that's like trying to think of the new boat when yours is sinking like the the first job is to get to shore sure okay so I want him to go get three jobs in construction and Walmart box slinging okay today I want him starting right now now okay the truck and the
• 03:00 - 03:30 trailer bull crap construction stuff right there what in the world what is that stuff worth um the truck he owes about 14 still and I looked on Kelly Blue Book and it's probably worth about six if we're lucky he's kind of run it to the grounds with working it yeah what's the trailer worth um I haven't looked at what it's worth we bought it for 177,000 um and it's a 2024 so it was br
• 03:30 - 04:00 um but I don't know what it would go for now okay let's get rid of that and doesn't sound sound like you're stuck in the truck for right now let's get six jobs and here's what I here's what I want you to do okay I'm going to put you on hold team is going to pick up and we're going to put you with one of our financial coaches and okay now he has to go get three jobs this week okay now can I ask you about that something about that though yeah with his business he
• 04:00 - 04:30 has a couple open jobs that he hasn't finished we'll finish him on the weekend okay that's what he's talked about doing okay we got $25 yeah Rachel how many kids you have at home uh three with a fourth on the way I thought so yeah okay yeah okay so honestly I I don't want him to let those other customers down but I'm more concerned that he doesn't let his pregnant wife down yeah okay where you are is terrifying
• 04:30 - 05:00 yes my wife Sharon will tell you that when she was in the exact same position she felt like she was driving down the interstate and hit a patch of ice and the car was spinning and she was getting ready to hit the crud out of something she just didn't know what it was you know that kind of Terror where you're open your mouth to scream and nothing comes out yep that's where you're sitting kiddo yes and so you guys and the only answer to it is Extreme activity on his part so I want him working three things and he can he can
• 05:00 - 05:30 put off working weekends until he uh at the new jobs until he gets these jobs wrapped up but he needs to get them wrapped up and wrapped up now okay and I want him to see how much money he can make well I don't want to overwork I might burn out you're not going to burn out right before you die you will pass out do that yeah he's been working 60 to 80 hour weeks the last three months but making no money right yeah see that that's the issue so we need some money short term this is survival now once we
• 05:30 - 06:00 got you with the coach and the counselor here's what we're going to do the first money that comes in let me tell you what you buy with it you ready yep food okay period not eating out food grocery store food you're at home with kids you cook yep fresh vegetables fresh meat yes homemade everything you cook y okay okay food lights and water second
• 06:00 - 06:30 okay keep your utilities on or you rent you own the house pay your mortgage third okay pay the truck payment forth okay and I don't care about anybody else until your family is warm and housed and fed okay he can make that much money by the end of next week okay yeah you follow me so we'll get the wolf away from the door and the terror and the panic and then we can start to think about long-distant future
• 06:30 - 07:00 but right now we got to take care of our own household first okay that's biblical yes for sure take care of your own household first yes and the idea of possibly selling the home to gain the equity you may have to do that later but I don't think you do I don't think you have a home problem or even a trailer or a truck problem I think you've had an income problem for some time and it's compounded and fell in on itself if we reverse that Trend and create a huge income with a ridiculous number of
• 07:00 - 07:30 well-paid hours then we can flip this thing on its head pretty quick I don't think you're going to have to sell it but it all depends on how much money he can go make okay is that okay thank you yes and listen we're not charging you for this coach we're going to pay for it I've been right where you are I remember what it feels like to be so scared you can't breathe yeah okay and kiddo listen last thing is this your husband is a good guy
• 07:30 - 08:00 yeah he is he's a good dad and he's a hardworking dude his business just failed that doesn't mean he's a bad guy and he doesn't feel real studly right now no he doesn't when his business is failing it takes away some of your manhood you follow me yeah so you remind him you married him for him not for his truck and trailer absolutely yeah okay and he married you you married him cuz he you knew he was going to take care of
• 08:00 - 08:30 and he is he'll go do it yeah he'll go do exactly what I told him to do this guy's not a bad dude yeah how old is he 26 uh 24 yeah okay almost like I've done this before yeah honey you're you're gonna be okay we're gonna walk with you okay okay all right you hang on they'll pick up and get you set up Dave what is the what's what is the this is a world I don't know that you've lived in what's the moment when a especially in this case a man with a
• 08:30 - 09:00 dream calls it cuz I can't imagine working 60 80 hours a week and my wife's going to a Food Kitchen we always call it too late yeah because we always hang on that much longer yeah and then and sometimes it's too late to turn it or salvage anything yeah um so he should have been out of business 6 months ago right cuz it wasn't working then yeah and we know that because of the debt he's racked up not earning money right
• 09:00 - 09:30 so we we know he's been supporting this habit called a small business so this dream but your dream becomes a nightmare and those of us that are entrepreneurs uh we hang on 5 months 4 months 3 months too long almost always and then you got a scared wife saying about to cut the lights off yeah Sharon would have left but she didn't have a car that's yeah exactly this is the Ramsey Show create your free every dooll budget today the simplest way to budget for your life