"Half of America Just Hung Up On This Call"

Summary

Episode Summary: "Half of America Just Hung Up On This Call"

Podcast: The Ramsey Show Highlights
Host: Ramsey Network
Release Date: February 7, 2025

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Introduction

In this episode of The Ramsey Show Highlights, host Dave Ramsey is joined by Rachel Cruze to discuss a caller's financial dilemma involving significant debt and the high costs associated with pet care. The conversation delves into budgeting, debt repayment strategies, and the tough decision of balancing financial obligations with personal commitments.

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Caller Introduction: Sierra's Financial Situation

Timestamp [00:10]:
Sierra, the caller, reaches out expressing her addiction to listening to the show and her desire to pay down debt while positioning herself to invest more. Her primary concern revolves around the high costs of dog boarding fees during her travel for work.

Key Points:

• Income:

  • Last Year: $79,000 base salary with additional pay, totaling approximately $87,000.
  • This Year: Expected gross income between $90,000 to $95,000 after a raise.

• Debt:

  • Car Loan: $20,000
  • Credit Card: $105
  • Student Loans: $70,000 principal plus $5,000 interest, totaling $75,000
  • Total Debt: Approximately $100,000

• Expenses:

  • Annual Dog Expenses: $10,000
  • Monthly Expenses: $2,800
  • Previous Job Per Diem: Helped offset dog-related costs

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Discussion on Pet Care Costs

Timestamp [01:29] - [02:10]:
Sierra reveals that she spends about $10,000 annually on her dogs, a significant expense contributing to her financial strain. She contemplates rehoming her dogs to eliminate boarding fees, despite her reluctance to do so.

Rachel Cruze's Perspective:

• Timestamp [01:35]: Suggests negotiating with her current pet sitter to possibly reduce costs.
• Timestamp [01:47]: Initially remarks bluntly, "I would say get rid of the dog," emphasizing the severity of her financial situation.

Dave Ramsey's Input:

• Timestamp [03:08]: Proposes co-parenting the dogs with a friend who loves dogs, aiming to share the responsibility and costs.
• Timestamp [05:27]: Encourages creative income solutions, suggesting that the temporary debt is manageable and can be eliminated faster with additional work.

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Debt Repayment Strategies

Timestamp [04:33] - [07:10]:
The discussion pivots to Sierra's debt repayment plan. With $100,000 in debt and an income nearing $95,000, Sierra is considering cutting back on dog expenses to allocate more funds towards debt.

Rachel Cruze's Recommendations:

• Timestamp [05:03]: Advises seeking additional employment during off-seasons to generate extra income.
• Timestamp [07:10]: Emphasizes the importance of prioritizing debt repayment over non-essential expenses, stating, "The math doesn't care about any of this."

Dave Ramsey's Advice:

• Timestamp [05:56]: Frames the decision as a "sacrificial question," weighing the benefits of reducing debt against the emotional value of keeping the dogs.
• Timestamp [07:35]: Suggests exploring all possible options, including finding a friend to co-parent the dogs, though acknowledges the difficulty in finding such an arrangement.

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Emotional Considerations vs. Financial Responsibility

Timestamp [06:25] - [07:51]:
The conversation addresses the emotional attachment to pets versus financial obligations.

Rachel Cruze's Commentary:

• Timestamp [06:29]: Highlights that spoiling dogs is often for the owner's emotional satisfaction rather than the pet's needs.
• Timestamp [07:51]: Shares a personal standpoint, expressing reluctance to sell her dogs despite understanding the financial implications.

Dave Ramsey's Conclusion:

• Timestamp [07:10] - [07:57]: Acknowledges the personal nature of the decision, emphasizing that while he cannot definitively advise Sierra to sell her dogs, he encourages her to consider the long-term financial benefits of reducing debt.

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Final Thoughts and Takeaways

The episode underscores the challenging balance between managing substantial debt and maintaining personal commitments, such as pet ownership. Ramsey and Cruze provide practical advice on budgeting, debt prioritization, and exploring additional income streams. They also acknowledge the emotional complexities involved in such financial decisions, ultimately empowering listeners to make informed choices based on their unique circumstances.

Notable Quotes:

• Rachel Cruze [01:47]: "I would say get rid of the dog."
• Dave Ramsey [05:27]: "Get creative on the income side and be able to pay off your debt faster."
• Rachel Cruze [07:10]: "The math doesn't care about any of this. The math is you."
• Dave Ramsey [07:35]: "I can't sit here in good faith and say, yes, you need to sell these dogs."

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Conclusion

Sierra's predicament serves as a relatable scenario for many listeners grappling with similar financial and personal dilemmas. The Ramsey Show Highlights effectively combines financial expertise with empathetic dialogue, offering actionable strategies while respecting the emotional weight of such decisions. Listeners are encouraged to evaluate their financial priorities, explore all available options, and make choices that align with both their fiscal responsibilities and personal values.

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For more insights and daily financial advice, tune in to The Ramsey Show Highlights on the Ramsey Network, available seven days a week.

Transcript

[Dave Ramsey]

Brought to you by chm, a biblically based alternative to health insurance. Learn [e-mail] budget oh, yes, I was.

[Sierra]

Just calling to inquire. I've been, you know, recently addicted to listening to the show. And so I'm wanting to pay down debt and get into a position to invest more. So I had a question in regards to if I should possibly rehome my dog, even though I don't want to. To get out of dog boarding fees when I'm traveling for work.

[Dave Ramsey]

Oh, no. Okay. How often?

[Rachel Cruze]

Most people listening like their dogs more than any people in their life.

[Dave Ramsey]

Sierra, how often are you traveling?

[Sierra]

I'm sorry?

[Dave Ramsey]

How often are you traveling?

[Sierra]

So with my new job, I travel a little less than I did before. So probably it just goes with the storms potentially like five to six months out of the year and I'm usually gone from like 10 to 14 days at a time.

[Dave Ramsey]

Okay, and what's the, what's the boarding situation? Are you going to like an actual border or do you have someone come and. And pet sit?

[Sierra]

So I have a sitter now that's pretty consistent. And looking. My bank did like an overview of all my spending and for my dogs, I spent about $10,000 last year.

[Rachel Cruze]

Oh, well, yeah, if you're going half the year. I, I mean, how long have you.

[Sierra]

Had or should I like maybe talk to my sitter to try to see if we can negotiate something?

[Dave Ramsey]

That's what I was wondering. Or, or is there some. I just wonder if there's other options. I always hate. Just like this is my only option.

[Rachel Cruze]

I would say get rid of the dog.

[Dave Ramsey]

Oh my.

[Rachel Cruze]

I know, I know. Half America just hung up on like they just are going to send mean cards and letters to.

[Dave Ramsey]

How much, how much are you making a year?

[Sierra]

So my base is around 79,000. And what my additional pay when I'm traveling, I usually like last year, I think my growth is about 87.

[Dave Ramsey]

Okay.

[Rachel Cruze]

But this isn't, this isn't financial me. This is actually for the dog.

[Sierra]

But I just also got a raise too. So this year my gross would probably be around 90 to 95,000.

[Dave Ramsey]

Amazing. Okay, how much debt do you have?

[Sierra]

So a lot. So I have $20,000 for my car and then I have a credit card with 105 on it.

[Dave Ramsey]

Okay.

[Sierra]

And then student loans is 70,000 plus 5,000 of interest, so 75K.

[Dave Ramsey]

Okay. So you're right at 100 grand of debt, making 95. Spending 10 grand on the dog per year might be going down because you have A new job. And, and how long have you had the dog?

[Sierra]

They're five and six.

[Dave Ramsey]

You have two.

[Rachel Cruze]

Five and six. Ah, okay. But it's like for the dog's sake, they only get to see you half the year, right?

[Sierra]

Yes, but they're excited when they see me when I come back.

[Dave Ramsey]

Sierra, all dogs are excited. Five minutes. No, I. Okay, here's what I would do. Sierra, I just wonder if there's anyone in your life who wants a dog as well and you can like co parent this dog.

[Rachel Cruze]

You're out of your mind.

[Dave Ramsey]

And for like six months out of the year this dog goes and lives with your friend who's like great with a dog and loves it. And you guys.

[Sierra]

Well, so it's not like a consistent. Like it like a storm could happen today or a storm can happen a couple months from now. It's not like consistent. Like right now I'm in down season but like storm season.

[Dave Ramsey]

I understand. Yeah. I'm just saying, I mean there's no friend like that. Rachel joking. Like the co parenting. No, she could. You could totally have a friend that's like, oh, I love dogs and they're. And Sierra's like, I'm just. I. I can't. I have some of the greatest planet.

[Rachel Cruze]

I don't know any friend that be like anytime ter night drop your dog off for six months, that'd be awesome. I don't know that person. Maybe, maybe. I think, I think, I think you're right. I think you're right. What brought you to this question? Even that you're considering it? Do you think it's the right move?

[Sierra]

No, I don't, I, I don't know. I just like, I like if I track my expenses and just cut everything out, looking at like including like $200 a month towards the dogs when I'm not traveling just to like build up an expense. Like right now I'm at like 2,800 in expenses a month.

[Dave Ramsey]

Okay.

[Sierra]

My last job used to give me per diem. So the per diem helped out with the dog cost.

[Dave Ramsey]

Sure, yeah. Yeah, totally. I mean because here's my thing, I'm like, Sierra, you'll be out of debt in what probably two and a half years? Like if you really.

[Sierra]

It was like three, like almost four years with the student loans.

[Dave Ramsey]

I think. Yeah, I think you can do it faster. I would pick up an extra job. I mean I would do things because.

[Rachel Cruze]

Especially during the slow season. Can you work right now?

[Sierra]

I've been trying to think of options. I'm not in an area where there's like Uber or Doordash or anything in that nature.

[Rachel Cruze]

Okay.

[Dave Ramsey]

Yeah, I would. I would get creative on the income side and be able to pay off your debt faster. Because here's the thing. The debt is so temporary. You could be out of debt in, let's just say two and a half years. And then, you know, your dogs are forever. It'll be eight. You'll have like another two years.

[Rachel Cruze]

Yeah, maybe that's the question. Do you want to go get during your off time if you're home for a month or two without a big storm, do you want to work on those days that you're home? Work, put in eight, 10 hours a day, just bust it. Go throw boxes at Walmart, go pick up a shift at. @ McDonald's or whatever. Work really hard on those days, and over the course of a year, you'll probably earn about an extra ten grand. If those dogs are worth that investment, then you've answered your question.

[Dave Ramsey]

That's a good way of. Yeah, that's a good way of framing it that if you had to work extra and make $800 a month to.

[Rachel Cruze]

Cover the cost of those dogs, is that, Is that investment, is that worth it for you?

[Sierra]

Yeah, possibly could. It's just like, they'd be in the house more if I work more.

[Rachel Cruze]

Okay. But I mean, you have to just make that call for yourself.

[Dave Ramsey]

Yeah.

[Sierra]

Okay.

[Dave Ramsey]

Yeah. And there, I mean, there's a. There's a lifestyle question for sure of the happiness of the dogs. Right. I'm like, yeah, if you are gone happy.

[Rachel Cruze]

So, yeah, but we spoil our dogs. Not for them, but we spoil them for us.

[Dave Ramsey]

Right.

[Rachel Cruze]

I spoil mine too. The dogs don't care. Right. My son found a couple of, like, old cow bones in this old field and he brought them home. The dogs are the happiest they've ever been with, like, these, you know, old cow. Like, they don't care. We spoil them for us, right?

[Sierra]

Yes.

[Dave Ramsey]

All right.

[Rachel Cruze]

If you need, if you need an anchor when you come home, you've been gone for a month. You need anchor to get home to, like, so you don't come home to empty apartment. I totally get that. I totally get that.

[Sierra]

Okay.

[Rachel Cruze]

But I think you just. The math, the sucky part here is math doesn't care about any of this. The math is you. You owe a hundred thousand dollars and you make 90. And how quickly can we get that debt paid off?

[Dave Ramsey]

Yes. I think that's it. I think it's just. It's the sacrificial question and is it, is that sacrifice worth it? Getting rid of them to gain an extra 20 grand over two years? And how quickly does that help you become debt free? Faster. And if that's not worth that sacrifice, like, no, I will be in debt six months longer in order to keep the dogs or whatever, you know, it ends up being for you, then that's great too. So, no, I, I, I can't sit here in good faith and say, yes, you need to sell these dogs.

[Rachel Cruze]

But I can, I can't say if it was, if it was me, I probably, I probably would, I wouldn't sell them. They're not for sale. And I like my dogs more than almost every person I know. And so, like, I'm a dog guy. But yeah, that's a hard one.

[Dave Ramsey]

Sierra, 20,000. I would find option C, see if there's a good friend who will take.

[Rachel Cruze]

That friend does not exist.

[Dave Ramsey]

I believe, I believe that friend is out there. Sierra, this is the Ramsay show. So CHM isn't health insurance. It's a health cost sharing ministry. Check it out for [e-mail] budget.