I Co-Signed A Car and It Was Repossessed

Summary

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Podcast Summary: The Ramsey Show Highlights

Episode: I Co-Signed A Car and It Was Repossessed
Date: February 24, 2026
Host: Ramsey Network
Featured Advisor(s): (Unspecified, but main speakers are Financial Advisors/Co-hosts)
Guest/Caller: Christine

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Episode Overview

This episode centers on Christine, a caller who finds herself overwhelmed by debt after co-signing a car loan for her ex-boyfriend, which was later repossessed. She also discusses being trapped in a debt relief program and juggles multiple creditors, all while supporting her three children. The advisors provide direct, empathetic, and tough love advice about escaping debt, addressing the pitfalls of co-signing and debt relief schemes, and mapping out actionable steps for Christine’s financial recovery.

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Key Discussion Points & Insights

1. Christine’s Debt Situation

• Debt Accumulation: Christine began paying into a debt relief program for three creditors. While in this program, she co-signed a car loan for her ex-boyfriend. The car was repossessed, leaving her responsible for the remainder of the debt.
• Overwhelming Burden: “Now I'm accumulating more debt outside of what I already have in my creditors debt relief program...it's uncontrollable for me right now.” (Christine, 00:36)
• Current Payments: $366/month to three creditors via the debt relief program, but only one creditor is being paid directly.
• Repossession Fallout: Left with a $14,000 deficit after the car was auctioned post-repo.
  • “What is the deficit that they’re coming after you for?” – “14,000.”
    (Financial Advisor & Christine, 01:54–01:55)

2. The Trap of Co-Signing

• Legality & Responsibility: The advisor clarifies Christine’s legal obligation due to co-signing.
  • “When you co-sign with somebody, you’re just as liable for the debt…It is a lesson learned the hard way.”
    (Financial Advisor, 02:49, 03:26)
• Emotional Impact: Ongoing creditor calls are disrupting Christine’s peace, and the advisors acknowledge this stress.

3. Debt Breakdown & Living Situation

• Total Debt:
  • $11,000 – Loan
  • $7,800 – Credit card
  • $6,000 – Credit card
  • $14,000 – Repo deficit (outside debt relief program)
• Income: Approximately $3,800–$3,900/month including occasional overtime.
• Housing Cost: $1,892/month for a three-bedroom apartment—about half her income.
  • “That’s what’s eating your lunch, Christine.”
    (Financial Advisor, 04:40)
• Living Paycheck-to-Paycheck: She resorts to payday advance apps.
  • “I'm living like paycheck to paycheck. But on top of that, I'm in one of those...stupid app situations where, like, you can borrow from your next paycheck.”
    (Christine, 04:46, 04:59)

4. Advisors’ Recommendations

A. Cut Housing Costs

• Advisors stress the urgent need to downsize.
  • “The bigger way that you can make an impact is on that line item, on your budget, and basically to cut it down to—I don't know—a thousand, eleven hundred somewhere in that range.”
    (Financial Advisor, 06:20)
• Move to a smaller unit in the same complex, if possible.
  • “Put two bedrooms and one, two kids in one room. And if there’s a baby, put the baby in the crib next to me…That’s what you need to do ASAP.”
    (Financial Advisor, 05:29–06:28)

B. Get Out of the Debt Relief Program

• Strongly discouraged from further involvement.
  • “Debt relief done. We’re done.”
    (Financial Advisor, 06:55)
  • “It’s a scam.”
    (Financial Advisor/Co-host, 07:00)
• Explained why creditors are still harassing her: payments are being pooled and not immediately distributed.
  • “They say, pay us the money, we're going to hold it in a pool basically, and we're going to wait until these creditors get desperate and they're ready to make a deal. That's why they're calling you, because they haven't been paid.”
    (Financial Advisor, 07:02)

C. Reclaim Control & Plan Next Steps

• Christine should break her contract and exit the debt relief program, even if faced with a penalty.
  • “Call them up and say, I don’t want to keep doing this anymore. What's going to happen?”
    (Financial Advisor, 07:50)
• Advisor offers practical encouragement:
  • Mistakes are a “stupid tax” (i.e., an “I didn’t know” tax), but learning and taking personal action will bring better results.
• Use budgeting tools (EveryDollar), seek coaching, consider calling the Ramsey team for support.

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Notable Quotes & Memorable Moments

• On Co-Signing:
  “It’s on you, girl. Unfortunately, when you co-sign with somebody, you’re just as liable for the debt…Lesson learned the hard way.”
  (Financial Advisor, 02:49–03:26)

• On Housing:
  "That’s what’s eating your lunch, Christine."
  (Financial Advisor, 04:40)

• On Debt Relief Programs:
  "Debt relief done. We’re done."
  (Financial Advisor, 06:55)
  "It’s a scam."
  (Financial Advisor/Co-host, 07:00)

• On Learning from Mistakes:
  “You're going to pay what we call here stupid tax, which is really a ‘I didn't know’ tax…What you're going to find is doing this on your own, you are going to go so much further, faster.”
  (Financial Advisor, 08:03)

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Timestamps for Key Segments

• 00:06 – Christine describes her escalating debt situation and debt relief program
• 01:54 – Christine owes $14,000 after car repossession
• 03:30 – Total debt load breakdown
• 04:36 – Reveals high housing costs and related financial pressures
• 05:29–06:28 – Advice to reduce housing expenses
• 06:55 – Strong advice to exit debt relief program
• 07:33–08:48 – Steps to leave the program, encouragement to use direct methods, and supportive closing advice

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Closing Tone

The episode balances tough love with compassion, directly addressing the realities of debt, co-signing, and predatory relief programs. The advisors reinforce Christine’s agency and the importance of informed, proactive decision-making, while assuring her of support and next steps.

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For more advice and access to free budgeting tools, listeners are directed to EveryDollar and encouraged to reach out for coaching as needed.

Transcript

[Host/Announcer]

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[Christine (Caller)]

I put myself into a lot of debt and I was trying to be proactive in the situation and I joined one of these like debt relief programs where, you know, you pay monthly and then there's a settlement fee or whatever. And being in that process, I actually helped my ex boyfriend get a car. He got that car repoed. So now I'm accumulating more debt outside of what I already have in my creditors debt relief program. My question is, is it best for me to maybe just file for bankruptcy? Because I'm still getting calls from the other creditors who are in my debt relief program just, you know, trying to negotiate or sending me notifications about whatever, you know, the balances that are owed. And now I'm accumulating even more debt outside with the repo and it's uncontrollable for me right now I'm paying like maybe some like $366 towards the debt relief program to three creditors. And I'm only paying one of the creditors at this point. And I was thinking like it's going to take me years to try to get all of them settled and I don't want to keep on investing in something that's just going to like, I don't know, that's not helpful at the end. So I wasn't sure what to do.

[Financial Advisor]

Well, yeah, that's very stressful if you're, if you're making many deep breaths right now. I understand that and you should keep doing that. Um, so let me just make sure I understand the repoed car. Your name was on the repoed car.

[Christine (Caller)]

Yes, it is.

[Financial Advisor]

And was it rolled into the debt relief or it's just separate and they're just coming after you for the difference?

[Christine (Caller)]

Exactly. Yeah. It was, it was not part of the debt relief. It's separate and they're coming after me too.

[Financial Advisor]

Understood. What is, Let me talk about the repoed car first. What is the deficit that they're coming at after you for?

[Christine (Caller)]

14,000.

[Financial Advisor]

Oh, girlfriend. Okay, they've already auctioned the car off. Or is it.

[Christine (Caller)]

Yeah, it's already taken. Yeah, I can't get it. Yeah.

[Financial Advisor]

And you don't know where your ex boyfriend is?

[Host/Announcer]

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[Financial Advisor/Co-host]

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[Financial Advisor]

You don't know where your ex boyfriend is?

[Christine (Caller)]

I do and I don't. I try to. No contact type of situation. So no contact.

[Financial Advisor]

Okay. Okay. So I'm just going to hit you with something that just really, really, really sucks. And I think you know this, that is, it's on you, girl. Unfortunately, when you sign, when you co. Sign with somebody, you're. You're just as liable for the debt. And you could say if you said, I'm not going to pay it, you're just going to feel the dings and the dings and the dings and the dings on your credit. And I feel like it's more so about it digging up your piece because they're calling you. Right. So you're going to have to add this to your snowball. And I hate to tell you that it is a lesson learned the hard way. Sorry.

[Financial Advisor/Co-host]

So what's your total debt load that you're trying to get relief from?

[Christine (Caller)]

So there's three creditors. One is 11,000, another it's like 7,8000, and then another is 6,000.

[Financial Advisor]

Okay.

[Christine (Caller)]

So in that, in that ex relationship, like I pretty much. One was a loan and then two are credit cards that I kind of maxed out just so I can leave the situation and get an apartment on my own.

[Financial Advisor]

Understood.

[Christine (Caller)]

I maxed up.

[Financial Advisor/Co-host]

So what do you make a year?

[Christine (Caller)]

A year? Well, I know I bring home maybe like 38, 39amonth.

[Financial Advisor]

Okay.

[Christine (Caller)]

And then there's overtime and things like that.

[Financial Advisor]

So with overtime, what does it look like on a, on a month where you do some good overtime?

[Christine (Caller)]

You know what, that's, you know what? To be honest, that's actually, I want to say that's including the overtime.

[Financial Advisor]

Okay. Okay.

[Christine (Caller)]

Yeah.

[Financial Advisor]

Okay. And then just, I always like to know where people's housing fits in that equation. Because if you're paying too much for your housing, it, it, it throws this whole thing off kilter. So what are you paying, what are you paying for housing?

[Christine (Caller)]

So right now I'm in an apartment complex and it's like 1892.

[Financial Advisor]

Okay. That's what's eating your lunch, Christine.

[Financial Advisor/Co-host]

That's a, that's half your income.

[Christine (Caller)]

So I'm paying. I'm literally, like, living like, I'm. I'm so, like, I'm living like, paycheck to paycheck. But on top of that, I'm. I'm in one of those, like, stupid app situations where, like, you can borrow from your next paycheck.

[Host/Announcer]

Oh, God.

[Christine (Caller)]

From. Yeah, I know. I'm telling you, I. This is what I've done to myself, so.

[Financial Advisor/Co-host]

I know, I know.

[Financial Advisor]

Okay.

[Christine (Caller)]

I know. This is. That's why. Sorry.

[Financial Advisor/Co-host]

Okay. We're both on your side.

[Financial Advisor]

Yeah, we're on your side, but you got to stop.

[Financial Advisor/Co-host]

You. Are you with us?

[Christine (Caller)]

Yeah, I'm here.

[Financial Advisor/Co-host]

Okay.

[Financial Advisor]

All right, so here's what. When's your lease up?

[Christine (Caller)]

It would be next June, like next year.

[Financial Advisor]

Is it a one bedroom or a two?

[Christine (Caller)]

It's. It's actually a three bedroom. I have three. Three kids with me, so I'm. Three kids.

[Financial Advisor]

You have three kids. Okay. So what I try to do is I'd go to the leasing office and I'd say, hey, because I'm pretty sure you can do this if you just say, hey, I just want to switch apartments. And in the complex, this one I'm having, this one's just too much for me. I want to go down to a two bedroom or I want to go down to, you know, a one bedroom. And maybe I put. Whatever you have to do. I put myself on the. On the fold out couch and I put two bedrooms and one, two kids in one room. And if there's a baby, I put the baby in the crib next to me. Right. That's what you need to do asap. Because with three kids, I will hate myself saying, you need to work more. Right. That feels very impossible. I'm sure there's something you can do, but I feel like the bigger way that you can make an impact is on that line item, on your budget, and basically to cut it down to, I don't know, a thousand, eleven hundred somewhere in that range. Do you see what I'm saying?

[Christine (Caller)]

No. Yeah, I understand. Yes.

[Financial Advisor]

Right. And it's going to feel terrible. You're going to feel like, I can't. Oh, I. I have three kids. I'm making them share a room. I'm uprooting their life. I'm making them. I'm making them. I'm making them. You're going to make them understand what it looks like to right wrongs and make things right. And that's the lesson that you're going to be teaching them. Doing this so tell yourself that when you start beating yourself up.

[Financial Advisor/Co-host]

J. Would you recommend she quit paying on this. On this debt relief nonsense?

[Financial Advisor]

Yeah, let's go to that. That's super. Yeah. Debt relief done. We're done.

[Financial Advisor/Co-host]

It's a scam.

[Financial Advisor]

The reason that they're calling you. The reason they're calling you is because the way those places work is they say, pay us the money, we're going to hold it in a pool, basically, and we're going to wait until these creditors get desperate and they're ready to make a deal. That's why they're calling you, because they haven't been paid. And so you've probably paid a bunch into a pool. How much have you paid in?

[Christine (Caller)]

So I've been in this debt relief for maybe like two years now.

[Financial Advisor]

Oh. And nothing's been paid off.

[Christine (Caller)]

And nothing's been paid off because. Well, the worst of it was like the. The larger amount creditor is the one that offered first, and I accepted it because I didn't know at the time, you know, what to do. So. Yeah. So that's the $11,000 one. And it's like I haven't made a dent in it.

[Financial Advisor]

Yeah. So we're getting out of that today. If I were you, I'd call him up and say, I don't want to keep doing this anymore. What's going to happen? And just make sure you read through what the contracts said so that you can come into the conversation and say, hey, I want to. I want to get out of this. I realize this is what I must pay or this is the penalty because there's going to be some penalty fee. And just realize this was not the way out. There's a couple of things, Christine, that you're going to pay what we call here stupid tax, which is it's really a I didn't know tax. And you're going to feel that and it's going to be in way of. I spent years paying a debt relief program to get nowhere and unfortunately, I co signed on a loan. But what you're going to find is doing this on your own. You are going to go so much further, faster. Christian's going to pick up. We're going to set you up with every dollar and there's free coaching on there. I want you to call the number to get a couple of minutes of free coaching so you can figure out your next right steps and call us back anytime you need us. We'll. We'll be here to help you create

[Host/Announcer]

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