Podcast Summary: The Ramsey Show Highlights

Episode: I Have $1,800 In Car Payments At 18% Interest
Date: October 15, 2025
Host: Ramsey Network
Guests/Experts: Rachel Cruze (A), Dr. John Delony (C)
Caller: Sarah (B)
Episode Length: ~10 minutes

Episode Overview

This episode centers around a call from Sarah, who—with her fiancé—finds themselves financially overwhelmed by massive car payments at high interest rates. Together, they face $1,800/month in car payments while being upside down on both vehicles. The hosts break down their situation, offer tough-love advice, and outline drastic but actionable steps to escape the debt spiral. The tone is empathetic but urgent, with encouragement to overhaul their spending and embrace uncomfortable but necessary changes.

Key Discussion Points & Insights

1. Caller Situation Breakdown

• Combined Car Payments: $1,800/month at 18% interest
• Vehicles:
  • 2015 Ford F150 (owes $20,000, payment $700/month)
  • 2021 GMC Acadia (owes $32,000, payment now $1,100/month after falling behind)
• Income:
  • Sarah: $55,000/year
  • Fiancé: $52,000–$53,000/year
  • Take-home pay: About $8,000/month combined
• Other Expenses:
  • Rent: $2,000/month
  • Daycare: $700/month
  • No savings; credit cards are maxed or unpaid

Memorable Exchange

• (00:21) Sarah: “Yeah, I know. It's stupid. I know.”
• (00:23) Rachel Cruze: “Are you driving Lamborghinis? What do you drive? I'm curious.”

2. Vehicle Value and Negative Equity

• Estimated Values:
  • Acadia: $17,000 (dealer offer); could get ~$20,000 private sale
  • F150: Believed to be only $8,000, but hosts strongly disagree; likely worth more, especially in Texas.

Notable Quote

• (02:21) Dr. John Delony: “From an F150. Did he wreck it?... F150s are made of gold.”
• (03:09) Dr. John Delony: “I haven't seen a truck worth $8,000 in a long, long, long time.”

3. Core Problem: Lifestyle vs. Income

• Overspending on Cars:
  • The car payment for Sarah alone is about half her gross income.
  • Car values are well below loan balances (deeply underwater).
• Budget Realities:
  • Rent is proportionate to income, but total outflows are unsustainable.
  • No savings, poor credit, unpaid credit cards.

Key Insight

• (03:59) Rachel Cruze: “…getting rid of this car is huge because it's more than half of your annual take home pay…we have way, way too much car, which I know, that's why you're calling, because you're feeling it.”

4. Immediate Recommendations

• Sell Both Cars: Offload both vehicles, even at a loss.
• Use Personal (Not Auto) Loans:
  • Suggested seeking a $25k personal loan (not a refinance) to pay off the negative equity on Sarah’s car, then buying a “$5,000 crappy car for just the time being.”
  • Similar process for her fiancé, likely needing a smaller loan if truck value is higher.
• Prepare for Discomfort:
  • Hosts emphasize that there’s no quick fix and the next 2-3 years will require serious sacrifice, including possible second jobs and drastically cutting lifestyle expenses.

Notable Quotes

• (06:21) Dr. John Delony: “It's not a refi. We're paying this thing off. We're done with it.”
• (07:08) Dr. John Delony: “...you have to metabolize to truly get out of this mess. It's going to be 36 months of not a lot of fun.”
• (07:56) Rachel Cruze: “There has to be an extreme change … it’s got to be a completely different shift.”

5. Financial Peace Mindset & Tools

• Lifestyle Shift Required:
  • Stop all non-essential spending: no eating out, no shopping, no vacations, consider moving to a cheaper apartment.
• Intense Budgeting:
  • Use the EveryDollar app and follow Financial Peace University steps.
  • Hosts gift Sarah a subscription to EveryDollar for a year to help tackle budgeting.

Memorable Moment

• (08:39) Dr. John Delony: “We're not decorating anything.”
• (08:41) Rachel Cruze: “We're not doing anything. But we're literally putting every single penny we can find to this debt…”
• (08:56) Rachel Cruze: “…[EveryDollar] is going to look over your entire financial picture, and people are finding thousands of dollars of margin in just 15 minutes.”

Notable Quotes & Timestamps

• (00:23) Rachel Cruze: “Are you driving Lamborghinis? What do you drive? I'm curious.”
• (02:21) Dr. John Delony: “From an F150. Did he wreck it?... F150s are made of gold.”
• (03:59) Rachel Cruze: “...getting rid of this car is huge because it's more than half of your annual take home pay...”
• (06:21) Dr. John Delony: “It's not a refi. We're paying this thing off. We're done with it.”
• (07:08) Dr. John Delony: “...you have to metabolize to truly get out of this mess. It's going to be 36 months of not a lot of fun.”
• (07:56) Rachel Cruze: “There has to be an extreme change...it’s got to be a complete different shift.”
• (08:39) Dr. John Delony: “We're not decorating anything.”

Key Takeaways

• Face Reality: Own mistakes honestly and accept tough sacrifices.
• Sell Cars, Accept Loss: Trade expensive, high-interest loans for manageable, short-term debt paired with very cheap cars.
• Slash Expenses: Ruthlessly cut all unnecessary spending, take extra work if possible.
• Budget Relentlessly: Use EveryDollar and Financial Peace University to plan every dollar.
• Prepare for a Grind: True change will hurt for 2–3 years but is possible with teamwork and determination.

Segment Guide

• 00:08–01:41: Sarah explains situation (car payments, loans, income breakdown)
• 01:47–03:29: Discussing car values, negative equity, and vehicle specifics
• 03:59–04:11: Realization of being “way too much car” relative to income
• 04:14–05:24: Outlining credit issues, rent, take-home pay, and reality check
• 05:54–07:08: Loan advice: personal loans vs. refinancing, aggressive sell-off plan
• 07:08–08:41: Mindset shift, true path out requires “burn it to the ground” changes
• 08:41–End: Strong push for intense budgeting, gift of EveryDollar subscription

Final Message

The hosts’ message is clear: There’s hope, but it will require radical changes, humility, and relentless budgeting discipline. Real financial peace is possible—just not with $1,800 in car payments.