Do You Understand How Insane This Is?

Summary

The Ramsey Show Highlights Episode: Do You Understand How Insane This Is?
Release Date: May 21, 2025
Host: Ramsey Network
Duration: Approximately 8 minutes and 45 seconds

---

Introduction: Caller’s Financial Situation [00:11 - 00:48]

The episode begins with Robin reaching out to discuss her family's substantial debt burden. Robin and her husband are grappling with a combined consumer debt of $234,368.58. She expresses the emotional strain of balancing debt repayment with familial obligations:

Robin [00:26]: “I am $230,000 in debt. With me, my husband are... $234,368.58. Perfect.”

Rachel Cruz immediately acknowledges the importance of knowing one’s financial numbers:

Rachel Cruz [00:23]: “You know your numbers. That's a start.”

Robin elaborates on her financial commitments and the guilt she feels when allocating funds towards family visits versus debt repayment:

Robin [00:26]: “I feel guilty if I do because I'm trying to pay off my debt, but I feel guilty if I don't because my kids want to see my family.”

---

Balancing Debt Repayment and Family Obligations [00:48 - 02:10]

Robin details her aggressive debt repayment strategy, allocating $2,000 to $5,000 monthly towards debt reduction. She uses the EveryDollar app to meticulously budget for family trips to Texas twice a year, costing approximately $1,000 per trip. Despite these efforts, the emotional conflict persists.

Dave Ramsey [00:55]: “How much money you guys spending on these trips? Like, one trip to see your family? How much would that be? Five grand? Two grand? One grand?”

Robin confirms:

Robin [01:19]: "Like a grand?"

This segment underscores the challenge of adhering to debt repayment plans while maintaining essential family relationships.

---

Evaluating Debt Repayment Strategy and Timeline [02:10 - 05:21]

The conversation delves into the feasibility of Robin’s debt repayment timeline. With a consumer debt of $234,368.58 and a mortgage of $430,000, coupled with a household income of approximately $15,000 to $20,000 monthly, Rachel Cruz assesses the situation critically.

Rachel Cruz [04:26]: “It's going to take you guys six years to get out debt. Do you hear that? It's going to take you five or six years at this rate.”

Robin mentions that her business had consumed resources last year due to its infancy and the arrival of a newborn, impacting their debt repayment capability.

Robin [03:02]: “We were opening a business and I had to really focus on that last year. And it was, it was very hard on our mental capacity. And I just had a newborn son.”

Rachel highlights that to achieve debt freedom within two to three years, Robin's family needs to consistently allocate $7,000 to $10,000 monthly towards debt, which they currently fall short of during certain months.

Rachel Cruz [04:40]: “You guys might lean to two, two and a half years, three years. But that still means you need to be putting seven to ten grand per month consistently towards this debt to knock it out in two to three years.”

---

Asset Evaluation and Strategic Recommendations [05:21 - 08:44]

Rachel and Dave shift focus to Robin’s assets, specifically her cars. Robin owns two cars with significant negative equity:

• Robin’s Car: Owed $20,000, valued at $10,000
• Husband’s Car: Owed $21,000, valued at $20,000

Rachel Cruz [07:11]: “I mean, you guys make a quarter million dollars a year. Do you understand how insane this is?”

Dave proposes a strategic move to sell the cars to reduce debt more aggressively:

Dave Ramsey [07:23]: “You would save six months of being in debt. So let's do that, Robin.”

Rachel emphasizes the need for commitment and cutting unnecessary expenses:

Rachel Cruz [08:22]: “I need some skin in the game, Robin.”

Dave encourages a "scorched earth" approach to debt elimination, suggesting that selling the cars demonstrates serious intent to become debt-free.

Dave Ramsey [08:25]: “That's six. That's saving six months of your time of being in debt. It's just from cars. So that has to be your mindset.”

---

Conclusion: Path Forward and Lifestyle Simplification [08:44 - End]

In the concluding moments, Dave advises Robin and her husband to simplify their lives by eliminating unnecessary financial burdens and focusing on peace and financial freedom. He reinforces the importance of a disciplined budget and commitment to debt repayment.

Dave Ramsey [08:44]: “So you guys have a lot of busyness and clutter in your life. So I would simplify everything and live a peaceful life.”

The episode wraps up with a brief mention of CHM (a biblically based alternative to health insurance), maintaining adherence to the show's format of skipping non-content segments.

---

Key Takeaways:

1. Financial Transparency: Knowing and understanding your financial numbers is crucial. Robin’s awareness of her debt load is a positive first step.

2. Balancing Priorities: Managing debt while maintaining family relationships can be emotionally challenging but is achievable through strategic budgeting.

3. Aggressive Debt Repayment: To significantly reduce debt within a shorter timeframe, increasing monthly debt payments and eliminating high-interest assets (like cars with negative equity) can accelerate the process.

4. Lifestyle Simplification: Reducing unnecessary expenses and simplifying one’s lifestyle can free up more funds for debt repayment, leading to financial peace.

5. Commitment and Consistency: Consistently allocating a substantial portion of income towards debt and making tough financial decisions (e.g., selling assets) demonstrate a serious commitment to achieving financial freedom.

---

This episode of The Ramsey Show Highlights provides a realistic portrayal of the complexities involved in debt management, emphasizing the importance of strategic financial planning, emotional resilience, and the willingness to make difficult choices for long-term financial health.

Transcript

[Dave Ramsey]

Brought to you by chm, a biblically based alternative to health insurance. Learn [e-mail] budget so my question is.

[Robin]

I am $230,000 in debt. With me, my husband are.

[Dave Ramsey]

And say it again. Sorry, what Was the number? 234.

[Robin]

234,368.58. Perfect.

[Dave Ramsey]

There you go.

[Rachel Cruz]

You know your numbers. That's a start.

[Robin]

Yes, I saw the Every dollar app, and I go see my family twice a year in Texas, and I feel guilty if I do because I'm trying to pay off my debt, but I feel guilty if I don't because my kids want to see my family. So I'm trying to figure out how to get out of that guilt thing. We put a lot towards our debt every month. We put between 2 to 5,000 towards it every month.

[Dave Ramsey]

That's great.

[Robin]

My husband makes a decent amount. So is it okay that I go see them or, like.

[Dave Ramsey]

Yeah, I mean, I don't. Yeah. The thing with these kind of scenarios, I never say, like, is it okay, yes or no to go see family? I think it's just a moral issue. No, it's just, how fast do we want to get out of debt? I mean, how. How much money you guys spending on these trips? Like, one trip to see your family? How much would that be? Five grand? Two grand? One grand?

[Robin]

Like a grand?

[Dave Ramsey]

A thousand dollars. Okay. And you're doing that twice a year, so we're talking two to $3,000 a year.

[Rachel Cruz]

And you're not going into debt for these trips?

[Robin]

No, I put it in my budget. I do the every dollar app. I put it in my budget to plan it out for that trip.

[Dave Ramsey]

Yeah.

[Robin]

And I just pay a little less on my debt that month.

[Dave Ramsey]

Yeah. I mean, again, I think it's one of these things with any level of. And I would probably put this in the category of, like, a luxury, because is there anyone sick? Like, is there like a. Oh, my gosh. Like, you know, we. We're gonna go visit.

[Rachel Cruz]

Like, we only don't know how many more years we have with grandma. Or is it just that this is a tradition? We always go see them for these holidays.

[Robin]

It's more of a. I miss my family. I get homesick, and I like to go see them.

[Dave Ramsey]

Yeah, yeah, yeah. Which is totally fine. So. Yes, I think it's one of these things. If you and your husband agree that two grand a year is going to put us back, you know, what, two months probably in a debt payoff in general. Like, is that. Is that trade off worth it? And I mean, I would probably say yeah. I mean, you know what I mean? Like, I don't know, like we've said, like, if people are getting married out of state or like there's a destination wedding or there's a funeral. Right. There's reasons to travel. And, and it's usually for more of a celebration or a event that is once in a, you know, something is happening.

[Rachel Cruz]

Can they come to you? Are they too old?

[Robin]

They come to us twice a year as well. So we see each other four times a year, but they come to us and then we come to them. Last year we didn't go see them at all because.

[Dave Ramsey]

Why last year? But this year, why didn't you go Last year?

[Robin]

We were opening a. We were opening a business and I had to really focus on that last year. And it was, it was very hard on our mental capacity. And I just had a newborn son.

[Dave Ramsey]

Okay. Yeah.

[Robin]

So.

[Dave Ramsey]

So, so, okay. So, Robin, I feel like you guys are very detail oriented. You know your numbers really well. What is the. When do you think you guys are going to be completely debt free? And, and does the 234 include your mortgage or is that all consumer?

[Robin]

That is all consumer. I also have a mortgage of 430,000.

[Dave Ramsey]

Okay, and how much are you guys making a year?

[Robin]

So my husband makes between 15 and 20,000amonth.

[Rachel Cruz]

Okay, why can you only put two grand a month towards your debt? Now I'm mad.

[Dave Ramsey]

No, she said 5,000. Two to 5,000. She said 5,000.

[Rachel Cruz]

Yeah, but you're making. He's making 20. Why do you guys have $15,000 of expenses every month?

[Robin]

Well, we have a pretty high mortgage. And then my son is in school, which that is about to change. So that number will go up. That number is going to go down because he's about to be in pre.

[Dave Ramsey]

K. How much is the mortgage a month?

[Robin]

3,500Amonth.

[Dave Ramsey]

Okay, and how much is the school a month?

[Robin]

Fifteen hundred a month.

[Dave Ramsey]

Okay, so that. So there's $10,000 left at least. Where is that? And 5,000, we'll say, is going to the debt. So they're living on five?

[Robin]

Yeah.

[Dave Ramsey]

George isn't. George isn't happy, Robin. George is not happy.

[Robin]

That's just the.

[Rachel Cruz]

It's going to take you guys six years to get out debt. Do you hear that? It's going to take you five or six years at this rate.

[Robin]

That's at the minimum. So I calculated everything to the minimum, and then anything extra goes straight towards the debt. Like this month. We put 7k towards our debt.

[Rachel Cruz]

Okay.

[Dave Ramsey]

Okay, that's good. Okay, so then they're living on three.

[Rachel Cruz]

But can I do the math for you?

[Robin]

I try to average.

[Rachel Cruz]

Average debt payoff for someone following the steps with Gazelle Intensity is 18 to 24 months. Now you guys have a lot of consumer debt, so that's just the average. So you guys might lean to two, two and a half years, three years. But that still means you need to be putting seven to ten grand per month consistently towards this debt to knock it out in two to three years. And I want that to be like come hell or high water, we are putting seven to ten grand a month. Do you understand that is.

[Robin]

That is our plan? Yes. But during the summer months my husband doesn't get as much extra work. So he works two full time jobs and then he's a wedding photographer and all of he has a bunch of side gigs. Makes them a lot of money. But during the summer that slows down. So I lowered the number the amount that we put towards the debt because we are making the minimum of 15,000 at that point.

[Rachel Cruz]

Okay, but do you see what I'm saying? I want you to have a fire. And right now I feel like you guys are fairly comfortable the way you're talking and the lifestyle. I want you to cut this down to nothing. You can still do the trip. The trip is not what's causing this. I think there's a lot of other leaks happening as well. And that's where this budget will reveal it to you very quickly. Hey, we made 20 grand this month. Where did it all go?

[Dave Ramsey]

But you're doing the every dollar budget, right?

[Robin]

Yes.

[Dave Ramsey]

So you're seeing it recently.

[Robin]

Has been going to the business.

[Dave Ramsey]

Okay.

[Robin]

Was the business profitable just now starting to make break even.

[Rachel Cruz]

Okay. What's the trajectory? Is this thing going to be making money in the next two months?

[Robin]

It's a franchise and I'm hoping it will, but we are currently breaking even.

[Rachel Cruz]

How much of this debt is tied to the business?

[Robin]

None of that. None of it.

[Rachel Cruz]

We have how much of it is cars?

[Robin]

This is only 40,000.

[Rachel Cruz]

Only. I don't know what part of town you grew up in, but that's a lot of debt.

[Robin]

It's a lot. But we have really good interest rates. We pay 500 per car.

[Rachel Cruz]

And you're so lucky. Rachel Cruz is here to be good cop.

[Dave Ramsey]

Robin.

[Rachel Cruz]

You're Robin. I'm. I'm just telling you right now. Call me back when you're serious and you actually want to get out of this mess? Not when you want to tell me you have a great interest rate on your debt. I mean, you guys make a quarter million dollars a year. Do you understand how insane this is?

[Robin]

Yes. Yes, I do. That is why I am.

[Dave Ramsey]

How much is that? Hey, hey, Robin. How much. How much could you get for the car right now if you, Kelly blue booked it? What do you think? Have you Kelly Bluewicked it? Probably not.

[Robin]

I have actually. For my car, I would get about 10, and I owe 20 on it. For my husband's car, I'd get about 20, and he was 21 on it.

[Dave Ramsey]

Wait, hold on. The forty thousand dollar car. Say that again. You would only get 20 for it.

[Robin]

For my car, I would get about.

[Dave Ramsey]

10 on my car, and you owe forty thousand dollars. Oh, okay, okay, I hear you, I hear you, I hear you. Okay.

[Robin]

Two cars here? Yeah, 20 each.

[Dave Ramsey]

Here. You. Okay, so 10 for yours. And then what would he.

[Robin]

And 20 for his.

[Dave Ramsey]

And 20 for his.

[Robin]

One on his.

[Dave Ramsey]

Okay, so the way, you know, you could look at this is the 40,000, which you'd have to put 10 because you're. You're, you know, underwater. 10. But that's $30,000. Which, George, to your math of what you're saying would be, you know, the way she's going at five grand a month, you would save six months by just selling the cars. You could save six months of being in debt. So let's do that, Robin. And that would show George that you are serious.

[Rachel Cruz]

I need some skin in the game, Robin.

[Dave Ramsey]

If y' all sold these cars, then.

[Rachel Cruz]

I know you're serious.

[Dave Ramsey]

10 days, then you're serious. Okay, that would be like, yes, we are. We are scorched earth. We are doing anything and everything to get out of debt. And that would be the move to make. That's six. That's saving six months of your time of being in debt. It's just from cars. So that has to be your mindset. That's what George, how you feeling? You okay over there?

[Rachel Cruz]

I'm doing better.

[Dave Ramsey]

Still a little heat. Breathe, George, breathe. Just breathe. Take some deep breaths, George. So that's Robin. That's the kind of stuff we're talking about. And then from there, and if you can get out of this franchise, it's feeling like it's sucking up money. And your husband's already working like four jobs, what you're saying. So you guys have a lot of busyness and clutter in your life. So I would simplify everything and live a peaceful life. So chm isn't health insurance. It's a health cost sharing ministry. Check it out for [e-mail] budget.