Grandma Keeps Hounding Me About The Money I Owe Her

Summary

Detailed Summary of “Grandma Keeps Hounding Me About The Money I Owe Her”

Podcast: The Ramsey Show Highlights
Host: Ramsey Network
Release Date: March 2, 2025

Episode Overview

In this episode of The Ramsey Show Highlights, host Dave Ramsey and guest Rachel Cruze provide financial guidance to Jessica, who is grappling with debt owed to her grandmother. The discussion centers around managing personal finances, applying Ramsey’s Baby Steps, and navigating life transitions such as sobriety and business challenges.

Jessica's Financial Situation

Jessica reaches out to the show seeking advice on managing her debts and relearning financial stability after becoming sober. She details her financial struggles:

• Debt Overview: Jessica owes her grandmother $6,000, which originates from a credit card her grandmother co-signed to help her fiancé start a business. Her total debt amounts to $10,344, encompassing property taxes, utilities, and an additional $2,200 in credit card debt.
  "In total, we are $10,344 in debt. That's including our property taxes, our utilities, and our $2,200 in other credit card debt."
  (00:44)

• Income and Employment: Jessica's fiancé has generated approximately $60,000 over six months from his business endeavors, while Jessica is currently unemployed.
  "He's been doing this business on his own for six months now. In the six months, he's made about $60,000."
  (01:47)
  "I don't work at the moment. I am. We are going through a new life transition."
  (01:50)

• Life Transitions: The couple has been sober for 40 days, which has introduced significant changes and challenges as they strive to restore their home and regain financial footing.
  "We are newly sober and I'm trying to get our house back into a livable condition. Basically, we've only been sober for 40 days, but... our whole life is chaos."
  (01:50)

Jessica expresses concern over her grandmother's persistent demands for repayment, especially given their reliance on a co-signed credit card essential for her fiancé's business operations.

Dave Ramsey's Initial Insights

Dave Ramsey empathizes with Jessica's situation, acknowledging her grandmother's support while emphasizing the importance of addressing debts systematically.

• Understanding the Debt: Ramsey seeks clarity on the total amount owed to provide tailored advice.
  "How much do you owe her?"
  (00:18)
  "6,000?"
  (00:24)

• Debt-Free Timeline: He outlines a potential roadmap for debt elimination, suggesting that with consistent income, they could be debt-free within three months.
  "If you could make three grand a month, you guys could be completely debt free in three months."
  (03:35)

Ramsey stresses the importance of prioritizing debt repayment, particularly addressing overdue property taxes to prevent further complications.

"We first have to take care of these back property taxes."
(03:35)

Rachel Cruze's Supportive Guidance

Rachel Cruze offers both emotional support and practical strategies to help Jessica navigate her financial challenges.

• Congratulatory Remarks: Rachel begins by commending Jessica on her sobriety and the courage to seek help.
  "Number one, I'm super, super proud of you. Congratulations."
  (02:22)

• Employment Advice: She underscores the necessity of securing employment, even if part-time, to stabilize finances and reduce reliance on debt. Rachel uses a compelling analogy to illustrate the constraints Jessica feels:
  "If you think of alcohol like yourself chained to a bottle, you've been unchained for 40 days... but grandma calling you, the government calling you, your utility is possibly going to get cut off. That's like a squat rack... you still can't run free."
  (02:23 - 02:35)

• Creating a Payment Schedule: Rachel advises Jessica to develop a clear payment plan for her grandmother, enhancing accountability and providing reassurance.
  "I would give her a payment schedule... Here's a 12-month payment schedule. We're going to pay you this much every month... you will be paid off by this date."
  (04:05 - 04:31)

Collaborative Advice from Dave Ramsey and Rachel Cruze

Both Ramsey and Cruze collaborate to offer a comprehensive strategy for Jessica to regain financial stability.

• Income Generation: They recommend that Jessica and her fiancé aim to generate a combined income of $2,000 to $3,000 per month through part-time jobs such as fast food, retail, or gig economy roles like Uber. This additional income is projected to expedite debt repayment.
  "You could do that with some part time jobs like in fast food. We're talking just clock in for sure."
  (04:31 - 04:49)
  "Even if it's 20 an hour, you need some little wins."
  (04:47)

• Debt Repayment Plan: Ramsey emphasizes the importance of addressing critical debts first, such as property taxes, before tackling smaller debts like the one owed to the grandmother.
  "Our goal is by the end of May, you will be paid. But we first have to take care of these back property taxes."
  (03:57)

• Accountability and Mapping: Rachel reiterates the need for clear communication and structured payment plans to maintain accountability and prevent further financial strain.
  "So you and husband make a map. Here's a 12 month payment schedule...she can check it off every month."
  (04:05 - 04:31)

Concluding Insights

The episode concludes with both Dave Ramsey and Rachel Cruze reinforcing the importance of taking proactive steps towards financial recovery. They highlight the transformative impact of securing steady income, creating structured payment plans, and maintaining accountability. Their combined advice offers Jessica a clear path forward to eliminate debt and stabilize her financial situation while continuing her journey of sobriety and personal growth.

Key Takeaways

• Prioritize Critical Debts: Address high-priority debts like property taxes to prevent severe repercussions.
• Secure Employment: Obtain part-time employment to generate necessary income and reduce reliance on debt.
• Create Structured Payment Plans: Develop clear, achievable payment schedules to ensure accountability and rebuild trust with creditors.
• Maintain Accountability: Regularly track progress and adjust strategies as needed to stay on course toward financial freedom.
• Embrace Small Wins: Celebrate incremental successes to stay motivated and build momentum towards larger financial goals.

By following these steps, listeners facing similar financial challenges can find a structured approach to managing debt, securing income, and achieving long-term financial stability.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Jessica]

So I'm just wondering how to go about applying the baby steps. Where my largest debt is a is to my grandmother, who has helped us. Yeah.

[Dave Ramsey]

All right, tell us. Yeah. How much. How much do you owe her?

[Jessica]

$6,000. Bell.

[Dave Ramsey]

6,000?

[Jessica]

Yeah. And that is from a credit card that she co signed with my fiance so he could start his own business.

[Dave Ramsey]

Oh, wow. What a nice grandma. Okay, and so what's your. What's your other debt?

[Jessica]

In total, we are $10,344 in debt.

[Dave Ramsey]

Okay.

[Jessica]

That's including our property taxes, our utilities, and our $2,200 in other credit card debt.

[Rachel Cruze]

Are you behind on your utilities and property taxes?

[Jessica]

Yes. So the thing is, my grandmother is pretty persistent in reminding us about the credit card debt. So we kind of. For example, his Last check was $4,500. We gave her $2,000 to try to bring that debt down. But the issue with that is that we rely on that credit card because he, for her, he's on the road for a week at a time, so.

[Dave Ramsey]

Hey, Jessica, are you able to talk into your phone a little bit more? We're trying to get it clear.

[Jessica]

Oh, sorry. I'm a little nervous too.

[Dave Ramsey]

Oh, no, you're fine. You're fine. Okay. So, yeah, so she's persistent. She's wanting her payment. She's. She wants her 6,000. How much do you guys make a year?

[Jessica]

So he's been doing this business on his own for six months now. In the six months, he's made about $60,000.

[Dave Ramsey]

Okay, and how much. How much do you make?

[Jessica]

I don't work at the moment. I am. We are going through a new life transition. We are newly sober and I trying to get our house back into a livable condition. Basically, we've only been sober for 40 days, but, you know, we just kind of. Our whole life is chaos. And so since getting sober, we're trying to figure out how to be like functioning adults. Priorities and learning how to be, you know, normal, I guess.

[Rachel Cruze]

Well, let me tell you this, Jessica, number one, I'm super, super proud of you. Congratulations.

[Jessica]

Thank you.

[Rachel Cruze]

That's awesome. The second thing is, is, and I know you've probably heard this over and over and over in your meetings, but you have to, have to, have to, have to, have to go get a job asap. It doesn't have to be a full time job, and it for sure is not going to be your dream job or your passion job or whatever. But think of it this way. If you think of alcohol like yourself chained to a bottle, you've been unchained for 40 days, but grandma calling you, the government calling you, your utility is possibly going to get cut off. That's like a squat rack. It's like you're sitting under a squat rack and you got a squat bar on your back. And so now you're unchained, but you still can't run free. And so what I'm telling you is if you go get a job, even working 20 hours, you clock in, you clock out, and you're baby stepping your way into full time employment, getting your feet underneath you. You're 40 days sober, you're still, I mean, your legs are still wobbly. And I get it. Every minute you're making a choice to do the next right thing. If you go get a job working 15 hours a week, 20 hours a week, and you can contribute to this thing, it will be like putting, it would be like jet fuel to your life change.

[Dave Ramsey]

I mean, Jessica, if you could make three grand a month, you guys could be completely debt free in three months. In three months, I mean, I mean with his income, everything. So I would tell Grandma, okay, our goal, grandma, is it's February, March, April. Our goal is by the end of May. By the end of May, you will be paid. But we first have to take care of these back property taxes.

[Rachel Cruze]

Yes.

[Dave Ramsey]

Because the government's right there. We're gonna, we're gonna pay those off this month, grandma. And you could even show her your, you know, you guys make a timetable and say how many hours would give her.

[Rachel Cruze]

I would give her a payment schedule. Cuz my guess is Grandma's calling because y'all have had, y'all have had challenges in the past and she's, and you haven't been accountable. She wants to make sure she gets her money back. So you and husband make a map. Here's a 12 month payment schedule. We're going to pay you this much, 250 bucks every month or whatever it is. And then you will be paid off by this date. She's not hassling you. She can check it off every month. But like Rachel said, you can't keep Rob and Peter to pay Paul. They're going to cut your lights off, they're going to take your house away.

[Dave Ramsey]

Yep.

[Rachel Cruze]

So I know grandma's hassling you and as she should be, and she's frustrated, but you can't let him take your home. Right. So let's get a payment schedule and give it to her.

[Dave Ramsey]

Yeah. And have a goal of you guys live on his income. And Jessica, you bring home two to three grand a month. You know, you could do that with some part time jobs like in fast food.

[Rachel Cruze]

We're talking just clock in for sure.

[Dave Ramsey]

We'll go work at Target, go, go Uber. Like do something that really allows you to just earn some extra income. I mean, even if it's know, $25, 20 an hour, you need some little wins.

[Rachel Cruze]

And I'm telling you, it'll be so transformative. I'm so excited for you.

[Dave Ramsey]

Good job, Jessica. I hope that helps create your free every dollar budget today. The simplest way to budget for your life.