The Ramsey Show Highlights

Episode: I Have $700,000 In Non-Mortgage Debt
Date: December 8, 2025
Host: Ramsey Network

Overview

In this episode of The Ramsey Show Highlights, the hosts help a caller who, along with her husband, is overwhelmed by nearly $700,000 in non-mortgage debt. The caller shares her story of rapid family growth, dwindling savings, and mounting financial struggles. The Ramsey personalities (David Ramsey, Rachel Cruze, and an additional host) walk through her situation in detail, focusing on actionable steps and tough decisions—like budgeting and cutting childcare and educational expenses—to help her family regain control.

Key Discussion Points & Insights

Life Changes and Debt Accumulation

• The caller describes going from a family of two to seven (including her mother-in-law) in under five years as the main reason for their overwhelmed budget.
  • “We’re drowning in debt. It all escalated within the last five years.” (B, 00:34)
• Maternity leave, property repairs, increased property taxes, and reliance on credit cards all contributed to their debt snowball.

Income & Debt Breakdown

• Combined pre-tax income: $240,000.
• Net (post-tax) income: $162,000.
• Their non-mortgage debt includes:
  • Personal loan: $28,000
  • Credit card debt: $98,000 (across 10 cards, five each for both spouses)
  • Student loan: $132,000
  • 401k loan: $43,000
  • Total: Approximately $301,000 in detailed debts (excluding mortgages and some debts not fully specified).

Debt Payments & Cashflow

• Minimum monthly debt payments are about $3,000.
• Despite a high household income, the family is in the red by “a couple of thousands” each month.
• All credit card accounts are current — nothing has gone to collections yet.

Real Estate

• Two properties: their home ($4,500/mo mortgage), and a rental/former primary home ($1,200/mo mortgage).
• They are selling the second property:
  • Owe $116,000, selling for $380,000—potentially freeing equity to pay down debts.
  • The host reassures: “That’ll make a huge chunk. Nothing to be afraid of there.” (A, 05:12)

Where the Money Goes

• Aside from mortgage and debt payments, key outflows include:
  • Family support (overseas): $300–400/mo
  • Private school: $1,300/mo for two children (ages 5 and 3)
  • Daycare: $800/mo
  • Medical bills, general living expenses, insurance, utilities

The Question of Private School (Pivotal Moment)

• Confusion over whether the private school cost is $1,300/year or $1,300/month—clarified it’s per month.
• Host challenges: “I’m going to challenge you that private school will always be there, and they really don’t need it that much. As much as you need $1,300 a month back in this thing called a budget.” (A, 07:33)
• Rachel Cruze: “You want to be able to do everything, but you mathematically can’t... For the next two to three years, our lifestyle has to change.” (C, 07:54 & 08:59)

The Budget

• The family admits to attempting but not maintaining a consistent budget.
• Hosts underscore the necessity of tracking, reducing expenses wherever possible, and prioritizing necessities: food, shelter, utilities, transportation.

Recommendations & Action Steps

• Consider removing children from private school to free up significant monthly cash flow in this crisis.
• Drastically cut all non-essentials, even if only for a few years.
• Use the proceeds from selling the secondary property to pay down high-interest debt.
• Offered a free session with a Ramsey coach and free access to EveryDollar budgeting software for a year.
  • “I want to give her a session with one of our coaches and free EveryDollar for a year.” (A, 09:11)

Notable Quotes & Memorable Moments

• On lifestyle change:
  “There has to be some changes, some significant changes. Right. Because if there’s not, you guys will keep in the cycle of where you’ve been.” (C, 07:54)
• On budgeting and private school:
  “As much as you need $1,300 a month back in this thing called a budget—which you aren't doing—but we just found $1,300 that you desperately need.” (A, 07:33)
• On the pain of cutting back:
  “And that's gonna hurt when you see that number. To think, oh my gosh, if we eliminate these things that we want to do that are good things... but we can't afford it.” (C, 09:00)

Important Timestamps

• 00:34: Caller describes emotional strain and snowballing debt
• 01:17–02:45: Detailed breakdown of debts (personal loan, credit cards, student loans, 401k)
• 04:16–05:11: Mortgage information and sale of second property
• 06:00–06:16: Recurring expenses, including family support and school
• 07:33–07:54: Hosts directly challenge the value of private school at this moment
• 08:59–09:11: Rachel Cruze lays out necessity of deep cuts and lifestyle changes

Conclusion

This episode is a candid, empathetic look into a real family’s overwhelming debt situation, with practical stone-cold advice on cutting back—no matter how painful. The hosts emphasize prioritizing essentials, stopping all non-critical spending (no matter how personally difficult), and committing fully to a detailed budget, reinforced by practical coaching and financial tools. The overarching message: Significant, tough choices are needed to escape the debt trap and regain peace of mind.