Go Into Debt to Get a Raise at Work?

Summary

The Ramsey Show Highlights

Episode: Go Into Debt to Get a Raise at Work?
Date: May 3, 2026
Host: Dave Ramsey (A), Co-Host/Expert (C), Caller (B)

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Main Theme Overview

This episode centers on a caller’s dilemma: Should he go into debt to repair or replace his truck in order to get a significant raise at work? The Ramsey team explores the financial and personal context, including the caller’s recent release from prison and ongoing family challenges, ultimately urging caution and financial stability over quick gains.

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Key Discussion Points & Insights

The Caller’s Situation

• Caller (B): Works as a subcontractor, cleans swimming pools, and is required to drive for work. His boss is currently lending a vehicle.
• His own truck needs a new engine (approx. $5,000 repair).
• Boss offers a 20–33% raise if he secures his own working vehicle.
• Main dilemma: Should he take out a loan to repair or purchase a vehicle to get this raise?

Financial Breakdown

• Current Earnings:
  • Gross: ~$33,500/year
  • Net: Same (~$33,500/year) after taxes.
• Potential Raise:
  • 20% would be about $7,000 more per year.
  • “So you break even after one year.” – Dave Ramsey (A) [02:21]

Personal Challenges

• Recent History:
  • The caller was incarcerated for over two years due to a mental health crisis leading to family violence.
  • Released just one week prior to the call.
  • Now separated from his wife (No-contact order), paying $500 rent for her and $250 for himself to cover their kids’ needs.

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Ramsey Network Advice

Strong Recommendation Against Debt

• Stability First:
  “You're coming off of a highly unstable situation and you haven't stabilized yet. ... You need to sustain a life with very little stress and adding debt to this is not the thing.” – Dave Ramsey (A) [04:08]
• No Quick Decisions:
  • “Everything in your life has been quick and sudden and fast, impulsive. And I want you to slow down and just be boring for a while. ... Just be boring, Thomas.” – Dave Ramsey (A) [06:54]
• Support for Caller:
  • Offers to send helpful books: “The Total Money Makeover” and “Building a Non-Anxious Life”.

Empowerment and Perspective

• Freedom Analogy:
  “When you borrow money, that bank tells you, I don't care how you feel, you're going to work tomorrow because I want my money. ... What I don't want you to do is walk out of prison and then walk right back in voluntarily. And that's what borrowing money does. Stay free.” – Co-Host (C) [07:10–07:44]

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Notable Quotes & Memorable Moments

• On Risk of More Debt:
  “Please don't go borrow money to buy a truck to work for a guy that you've been working for for 10 minutes even though you've known him 100 years.” – Dave Ramsey (A) [06:36]
• On Caller’s Need for Stability:
  “You need to make sure the kids have something to eat. But she also is going to have to bank a life without you. ... Right now we've got to get you up and stable.” – Dave Ramsey (A) [05:59–06:00]
• On Life After Prison:
  “The last two plus two and a half years, somebody told you when to get up, when to eat ... When you borrow money, that bank tells you, I don't care how you feel, you're going to work tomorrow because I want my money.” – Co-Host (C) [07:10–07:31]
• Final Encouragement:
  “Stay free.” – Co-Host (C) [07:44]

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Important Segments & Timestamps

• Caller's Situation/Question: [00:06–02:21]
• Personal Backstory and Prison Experience: [02:30–03:56; 03:28–04:06]
• Advice Against Debt & Importance of Stability: [04:08–07:06]
• Freedom vs. Debt Analogy: [07:06–07:44]
• Resources Offered & Final Words: [07:44–08:05]

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Summary

The hosts urge the caller, Thomas—just returned to society after prison and in personal turmoil—NOT to take on new debt even if it means delaying a raise at work. Instead, they recommend he focus on stability, avoid impulsive choices, live simply for now, and seek incremental improvement. The team emphasizes “boring is good” during periods of recovery, underscoring that freedom from debt is as valuable as freedom itself after incarceration.

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Tone & Style

• Direct, compassionate advice with real-world financial wisdom
• Clear, empathetic recognition of caller’s unique challenges
• Encouraging, supportive closing with offers of further resources

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A practical and heartfelt reminder: True financial progress is built slowly, especially after life’s hardest chapters. “Stay free.”

Transcript

[A]

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[B]

I'm basically a subcontractor working for a company. I have to be doing a lot of driving. Need a personal vehicle right now my boss is lending me one of his. I currently have a broken down truck that needs an engine, probably around a $5,000 fix. If I get that fixed, my boss will give me the equivalent of a 20 to 33% raise across the board on my job. The question is whether or not to take out a loan to do that. And then since right now the income that I'm getting fixed pretty good. So I can literally.

[A]

What are you doing?

[B]

What's that?

[A]

What do you do for a living?

[B]

I'm a. Clean swimming pools.

[A]

Okay. All right. And so a $5,000 or $6,000 truck will get the job done as long as it runs and gets you there. Right.

[B]

Well, so I currently have a vehicle that is broken down. It needs an entry.

[A]

I know you told me that. I don't want to fix it. It's crap. I'd rather just buy one that's already running. Okay, so what can you sell that piece of crap for that salvage? A thousand bucks? Fifteen hundred?

[B]

Not quite sure. I haven't priced that yet.

[A]

Yeah. Okay. What, what, what kind of, what kind of year model and what truck is that that's sitting with no engine?

[B]

2001 or maybe a 2003 Ford F150.

[A]

Okay. Yeah. So you can buy that car with an engine running for five or six grand. Yeah. Okay. And what, what are you making? How much do you make before he gives you this 20 or 30% raise?

[B]

Net is 33.5. Gross is 30. After my 1099 taxes.

[A]

33.55. $33,500.

[B]

Yes.

[A]

Okay.

[B]

Making about. Yeah.

[A]

Yeah. Okay. And so a 20% raise is $7,000. That sound right? Yeah. 20% of 33. Okay. And so, yeah, the. So you break even after one year.

[B]

Okay.

[A]

If you spend $7,000 to get a truck and he pays you 20%. How long have you been working for this guy?

[B]

Well, so, so he's the one that trained my dad. I've been working for my dad for ever since I'm 20. I'm 28. I've been working for my dad off and on since I've been 15. Um, I, I recently had a life destruction event and have been literally have started working last week back in this job that I have. Like.

[C]

What's a life destruction event?

[D]

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[C]

What's a life destruction event?

[B]

I. I had a mental health crisis. During the mental health crisis, I. There was. There was family violence happening between me and my wife. I got put in prison for that. Even though in Texas there's supposed to be provisions for preventing. For helping people with mental health to not just put them in prison. But that didn't happen with me.

[C]

How long were you. How long were you away?

[B]

Two years and a month. And then I got a violation and was back in for another five months. So I'm back out a week now. So. Okay.

[A]

No.

[C]

Yeah. Don't borrow money, please.

[A]

You do not need to borrow any money. You're coming off of a highly unstable situation and you haven't stabilized yet. At least we don't know that. We hope you have. And you hope you have. Okay. If you told me this was all three years ago, it might be a different discussion. It wouldn't be a discussion about borrowing money. Would be a bit. A different picture. But instead we're three minutes into this, not three years into this. So you need to sustain a life with very little stress and adding debt to this is not the thing. So thank you, boss, for the new job. I'm sorry I'm a minute out of prison and I don't need to be borrowing money right now. I'll have to drive your truck for a while longer until I can save up and pay cash for something.

[C]

How long till you can save up six grand?

[B]

That's kind of. That's kind of the issue. The all my money is basically kind of breaking even in my every $0 budget.

[A]

Where's it going?

[B]

One second most biggest expense is $300 in gas and I'm spending about 105. I'm purchasing about 105 gallons a month. Come on though, please. Cool.

[A]

How much is your rent?

[B]

That's it. Me and my wife are currently separated she has a 500 rent, I have a 250 rent.

[A]

You have to pay the 500 rent?

[B]

Yes.

[A]

Why

[B]

currently? Because we have. We have two kids. She's basically stay at home. Her family sometimes helps, but if I'm paying the stuff, she doesn't ask for the money. And currently, because of the family violence, there's a no contact order. So I cannot coordinate anything with her. So I'm kind of defaulting to doing everything, basically.

[A]

Yeah. Well, I'm going to help you. You don't have to do everything. You need to make sure the kids have something to eat. But she also is going to have to bank a life without you. And that means she has to develop a way to live sustainably without. Without you feeding her. Okay? So, you know, right now we've got to get you up and stable. So you're 250rent, even 500 going out for her. Still not used up all your money. So you've just started. This is real fresh. Thomas, please don't go borrow money to buy a truck to work for a guy that you've been working for for 10 minutes even though you've known him 100 years. This whole thing, everything in your life has been quick and sudden and fast, impulsive. And I want you to slow down and just be boring for a while. That's no excitement. You've had enough excitement to last you the rest of your life. Just be boring. Thomas.

[C]

Can I paint you a picture, brother?

[B]

All right.

[C]

The last two plus two and a half years, somebody told you when to get up, when to eat, when to. You could go outside, what you were going to eat, right?

[B]

Yep.

[C]

When you borrow money, that bank tells you, I don't care how you feel, you're going to work tomorrow because I want my money. You already took my truck.

[A]

Oh, you got.

[C]

You lost that job. I don't really care. You're doing this because. Right. And so what I don't want you to do is walk out of prison and then walk right back in voluntarily. And that's what borrowing money does. Stay free.

[A]

Yeah, that's good. That's good.

[C]

Stay free.

[A]

Hang on. I'll send you a copy of the total money makeover and we'll help you as you rebuild your life. And steady. Steady and slow.

[C]

Christian, send him building a non anxious life too. I want to give him some tools for walking through the ups and downs that are going to be the next 5, 10, 15 years of his life as he steadies himself and builds a new version of himself from the inside out. We'll send him both of those.

[A]

Yeah. Very good. That's good. I like that. Create your free every dollar budget today. The simplest way to budget for your life.