How Can I See The Light At The End Of The Tunnel?

Summary

Summary of "How Can I See The Light At The End Of The Tunnel?"

The Ramsey Show Highlights episode titled "How Can I See The Light At The End Of The Tunnel?" released on May 8, 2025, delves into the financial struggles of a caller named Ryan. Hosted by the Ramsey Network and featuring insights from financial experts Dave Ramsey and Rachel Cruze, the episode provides actionable advice for individuals grappling with debt and financial uncertainty.

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1. Introduction to Ryan's Financial Struggles

The episode begins with Ryan reaching out for help in managing his debt. At [00:06], Ryan expresses his frustration:

“It feels like every time I get... I see a light at the end of the tunnel, I'm just... there's something else that piles on top of it.” ([00:06])

Ryan's primary concern is maintaining hope and momentum in his journey to eliminate debt.

2. Detailed Breakdown of Ryan's Debt

Dave Ramsey inquires about the specifics of Ryan's debt at [00:29], to which Ryan responds:

“I've got about $20,000 in debt.” ([00:32])

He further elaborates that approximately $15,000 to $16,000 of this debt is tied to credit cards, with an additional $5,000 to $6,000 related to medical expenses ([00:37]).

3. Ryan's Income and Monthly Budget

Ryan shares his financial situation, stating a base salary of $55,000 with commissions bringing his annual income to approximately $65,000 to $70,000 ([00:55]). After taxes, his monthly take-home pay is about $4,300 ([01:06]). Dave probes into his budgeting habits:

“Are you on a tight budget, Ryan?... Do you have things written down before the month begins?” ([01:37])

Ryan confirms his adherence to a strict budget, allocating nearly all his income towards debt repayment and essential expenses, leaving him with only $100 at the end of each month ([01:26]).

4. Challenges Faced: Legal Fees and Divorce

A significant hurdle in Ryan's financial journey is his ongoing legal battle. At [02:23], Ryan reveals:

“One of my biggest expenses right now is my attorney fees... actively going through a divorce, custody of my son.” ([02:23])

This legal situation incurs monthly attorney fees ranging from $1,000 to $1,200 ([06:21]), further straining his budget.

5. Strategies for Debt Repayment

Rachel Cruze explores how much Ryan is able to allocate towards his debt beyond minimum payments:

“How much extra beyond your minimums are you putting towards debt every month?” ([05:24])

Ryan estimates he's able to put an extra $300 monthly towards his debt ([06:04]). Recognizing the impact of his attorney fees, Rachel identifies the total active contributions towards debt as approximately $1,300 per month ([06:22]).

6. Importance of Increasing Income

Both Rachel Cruze and Dave Ramsey emphasize the critical need for Ryan to enhance his income streams. At [07:18], Rachel advises:

“What skill set and experience do you have that could potentially make you an additional thousand to $2,000 a month?” ([07:18])

Dave echoes this sentiment, highlighting that additional income can accelerate debt elimination:

“If you even just threw... $2,000, you're done with this in November.” ([07:48])

7. Actionable Advice and Encouragement

The experts provide Ryan with a clear action plan:

• Prioritize Debt Repayment: Focus on eliminating high-interest credit card debt first.
• Increase Income: Seek additional sources of income to supplement current earnings.
• Manage Legal Expenses: Aim to conclude legal matters promptly to reduce monthly attorney fees.
• Eliminate Credit Cards: Once debts are settled, remove access to credit cards to avoid future debt accumulation.

Rachel concludes with motivational support:

“Create your free EveryDollar budget today. The simplest way to budget for your life.” ([09:01])

8. Notable Quotes with Timestamps

• Rachel Cruze on Increasing Income:

  “What can you do professionally?... an additional thousand to $2,000 a month.” ([07:18])

• Dave Ramsey on Debt Elimination Speed:

  “If you even just threw... you're done with this in November.” ([07:48])

• Rachel Cruze on Budgeting:

  “Create your free EveryDollar budget today. The simplest way to budget for your life.” ([09:01])

9. Conclusion

The episode serves as a beacon of hope for listeners facing similar financial challenges. By dissecting Ryan's situation, the Ramsey Network experts illustrate the importance of disciplined budgeting, proactive debt management, and the pursuit of additional income streams. The collective advice underscores that with persistence and strategic planning, the light at the end of the financial tunnel is attainable.

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For more insights and daily advice on life and money, tune into future episodes of The Ramsey Show Highlights, part of the Ramsey Network.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app.

[Rachel Cruze]

Start budgeting for free today.

[Ryan]

Hi. I am just struggling to get on top of my debt. It feels like every time I get, you know, or I see a light at the end of the tunnel, I'm just, you know, there's something else that piles on. On top of it. Now I would just like some advice on how I can, you know, continue to see the light at the end of the tunnel and just continue to work. I'm gonna try and get on top of my debt.

[Dave Ramsey]

Okay, so how much debt do you have, Ryan?

[Ryan]

So I've got about $20,000 in debt.

[Dave Ramsey]

Okay. What's that in?

[Ryan]

So I would say about 15 to 16,000 of that is in credit cards.

[Dave Ramsey]

Okay.

[Ryan]

And then the other, you know, five to six would probably be just stuck in medical right now.

[Dave Ramsey]

Medical. Okay. And how much are you making a year?

[Ryan]

I'm making about 55,000 for my base salary.

[Dave Ramsey]

Okay.

[Ryan]

And then I get paid commission. That would take me to about 65 to 70,000.

[Dave Ramsey]

Okay. So after taxes, how much do you bring in a month?

[Ryan]

I'm bringing in about 4,300amonth right now.

[Dave Ramsey]

4,300. Okay.

[Rachel Cruze]

How much margin do you have out of that? 4,300. Take home. How much margin do you have at the end of a month if. If you haven't had a disaster or something like that? You stuck to the bud, paid everything. What's that look like?

[Ryan]

I really throw everything that I can at my debt. So between my rent and my groceries and paying child support and everything that I've got, I'm really sitting at 100 bucks at the end of the month.

[Rachel Cruze]

Okay.

[Dave Ramsey]

Okay. And are you on a tight budget, Ryan? Like, do you have things written down before the month begins and you stick to it and you're, like, very, very, very, very diligent with your expenses.

[Ryan]

Yeah, I'm. I'm just sitting down and going through all of the minimal. Basically have everything. I'm following the baby step about, you know, having. I've got about two grand in savings right now.

[Dave Ramsey]

Okay.

[Ryan]

And I'm just throwing everything possible that I can at one debt. It just. The thing that's hard for me is between my. I would say one of my biggest expenses right now is my attorney fees, just because it's. I'm still actively going through a divorce, custody of my son.

[Dave Ramsey]

Okay.

[Ryan]

And. Yeah, just throwing money that way.

[Dave Ramsey]

What were these for, Antonio? What were you racking up the step for?

[George]

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[Dave Ramsey]

Here.

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[Dave Ramsey]

How much money are you spending a month on that, would you say?

[Ryan]

I mean, last month I just spent or I just paid him 1200 bucks.

[Dave Ramsey]

Okay.

[Rachel Cruze]

That's a huge difference.

[Dave Ramsey]

Yeah, for sure. Is there, do you see an end at all to that? Like, do you have any estimation on when that will be wrapped up?

[Ryan]

I'm hoping this year. I mean, my ex, she and I were never married.

[Dave Ramsey]

Okay.

[Ryan]

So it's just been, you know, luckily I haven't had to deal with the divorce side of it. Just battling.

[Dave Ramsey]

Oh, I gotcha.

[Ryan]

I've been battling.

[Dave Ramsey]

Okay. Battling suicide.

[Ryan]

So he was born. Yeah.

[Dave Ramsey]

Okay. And how old is it? A son? Is that what you said?

[Ryan]

Correct.

[Dave Ramsey]

How old is he?

[Ryan]

Two.

[Dave Ramsey]

So this has been going on for two years?

[Ryan]

Yeah.

[Dave Ramsey]

Okay, but you're thinking there is a possibility of it, of, of all this to be wrapped up at the end of this calendar year, is what you're thinking, correct?

[Ryan]

Yeah. We should just have one more hearing left.

[Dave Ramsey]

Okay. Okay. Well, that's good. I mean, in a sense, I mean, from the emotional toll that that takes, plus freeing up some of that income. Because I think, Ryan, for you right now. Cause it's not a crazy amount of debt. I mean, you know, 20,000. We, we've. We've had a lot worse. Even on today's show, there's been some more bigger numbers. So it's so doable. But I think it's an income issue at this point because I'm like, you know, after $5,300 a thou, you know, 1200 of that going to attorney fees. You know, I know it's not every month necessarily like that, but I mean, that's a realistic idea of like. Oh, yeah, like there's a big chunk leaving. It's almost like you have to replace that in order to gain any level of traction. Because $100 extra, it's not really going to move the needle much. Especially with these, with this credit card. $15,000 in credit card debt and you. Interest rates, what, probably 20, 22, they're.

[Ryan]

Actually relatively low because I've had these credit cards for a while now to stay on top of them.

[Dave Ramsey]

Okay.

[Ryan]

I was doing really, really well about, you know, just paying them off. I mean, only putting, you know, like putting gas and groceries on the credit cards and then just paying them off.

[Rachel Cruze]

You said, you said that you've been throwing everything you can at the debt so far. How much? Just give us maybe a three month average to the best of your memory, or if you know it clearly. What is, what is the amount you've been putting above all of your bills towards the extra, the extra. What is that extra amount you've been putting towards debt every month?

[Ryan]

So I've got an American Express card that I just did a minimum payment which right now is about, you know, $250. I've got a capital one that's about the same $250. My visa is pretty low, but my Visa, other than my attorney fees is the lowest amount. So I'm throwing probably $500 towards that.

[Rachel Cruze]

In addition, is my question. I'm not talking your minimums, I'm saying, are you. I thought you had said that you're throwing. I'm trying to get an idea here because I'm going somewhere with this. How much extra beyond your minimums are you putting towards debt every month?

[Ryan]

Probably 300 right now, as much as I can.

[Rachel Cruze]

And how often in the last five, six months have you gotten a big attorney bill?

[Ryan]

It's almost been every single month at this point.

[Rachel Cruze]

And what would you say the average has been? Has it been in that 1200 range?

[Ryan]

A thousand to 1200? Yeah.

[Rachel Cruze]

Yeah. Okay. So good news, bad news. Bad news is you're still in this fight. And I don't know if that's going to continue, but that is a massive chunk that if you didn't have that legal situation. Now I'm going to add that I'm going to say let's be modest. Modest and say a thousand dollars plus the 300 in addition you've been putting already, that's $1300 a month to Rachel's point. I'm trying to encourage you here and then give you something tactical. We can pay 20, 000, pay the 5 to 6 off really quick in medical and the 20, 000 in credit card, or excuse me, 16, 000 in credit card. We can pay that off really quick. So the, you asked the question, how do I see the light at the end of the tunnel? And I think you got to, you got to just hang in there to go once we get past the custody fight. The light is shining bright because you're going to be able to put $1300 a month towards. Let's call it 21,000 change in debt. Correct?

[Ryan]

Correct.

[Rachel Cruze]

That's going to go pretty quick. Now, what do we do in the interim? My question is, what can you do professionally? What skill set and experience do you have that could potentially make you an additional thousand to $2,000 a month? You may not be able to do it, but I want you to at least ask the question and go, where could I do this? Can I make an additional thousand to $2,000 a month so that we can make some progress while we're in this fight? That would be my goal, Rachel, if I were him.

[Dave Ramsey]

Yeah. I mean, if you just looked at this of like, you know, everything's on fire. I'm just. I am doing anything and everything. It doesn't matter. Hour of the day. And it's just kind of this, like, scorched earth feeling. And what's crazy, Ryan, is if you even just threw, you know, $2,000, you're. You're done with this in November. You know what I mean? December, January. But I'm like, it can happen so fast. The snowball effect can take. So it can. It can start going in that momentum so fast. But it's the income side that's gonna do it. And so it's. That's kind of the lever you have to pull. And you're exhausted. I'm like, you're. You're fighting custody or working full time, but. But I would up this 70,000 a year.

[Rachel Cruze]

I agree.

[Dave Ramsey]

With some extra stuff that you can do again, even an extra thousand dollars a month, bringing something in. 1200, 1300, anything extra, Ryan, that's going to be your saving grace in this because it does get down to a math problem.

[Rachel Cruze]

That's right.

[Dave Ramsey]

And the income, I don't see many expenses that you can cut from what you've told me. So I think it is. It is just earning that extra income, and it's for a short period of time.

[Rachel Cruze]

That's right.

[Dave Ramsey]

But then it's all done. And cut up the credit cards, Ryan, like today, like, get them out after we're done and be done with it, because the temptation is to go back to those and you're gonna go deeper in the hole. So just cut those out of your life completely.

[Rachel Cruze]

Create your free every dollar budget today. The simplest way to budget for your life.