The Ramsey Show Highlights: "I Have To Put My Utilities On Credit Cards"

Release Date: May 5, 2025

In this emotionally charged episode of The Ramsey Show Highlights, Deborah reaches out to the Ramsey Network seeking urgent financial advice. Struggling with mounting credit card debt and complicated family dynamics, Deborah's situation offers listeners a deep dive into the challenges of managing real estate investments, personal finances, and familial responsibilities. Hosted by financial experts Dave Ramsey and Rachel Cruze, along with insights from Ken Coleman, Dr. John Delony, George Kamel, and Jade Warshaw, the episode provides actionable strategies and heartfelt support for those facing similar dilemmas.

1. Introduction to Deborah's Financial Crisis

Deborah opens up her financial turmoil shortly after the show's introduction, detailing the cascade of events that led her to her current predicament.

Deborah (00:20):
"I have two houses. One I was renting out. The renter went away, totally trashed the place, left the place broken. Haven't fixed it. Had a lousy, lousy, horrible, horrible 20, 24 year. And it's left me with $70,000 worth of credit card debt."

Her situation is exacerbated by a sudden reduction in income—from working five days a week to three—alongside personal health issues and a larger family to support.

Deborah (01:08):
"I have kids living with me. I have grandchildren living with me. And honestly, the money I have now, I can't make the bills every month."

2. Deep Dive into Deborah's Real Estate Holdings

The conversation shifts to Deborah's real estate assets, clarifying the status and financial implications of each property.

Rachel Cruze (01:25):
"So, Deborah, the rent. How much do you owe on it?"

Deborah (01:32):
"On the rental? I owe zero. Oh, it's paid for. I inherited it from my father."

This inherited property, valued at approximately $650,000, contrasts starkly with her current condo.

Rachel (02:01):
"How much is the condo worth?"

Deborah (02:06):
"Probably about 400,000."

The condo, where Deborah presently resides, carries a mortgage of $114,000. The disparity between these two properties sets the stage for the financial advice to come.

3. The Financial Impact: Debt and Reduced Income

Deborah elaborates on how her investment property led to significant debt, especially after unexpected repairs and loss of rental income.

Deborah (02:19):
"I've been putting my utilities on the credit card and that kind of thing. And this is over a year, and it's all added up, and here I am."
(Timestamp: 02:19)

The strain is further intensified by health issues, with Deborah mentioning knee surgery, and the increased household size due to her children and grandchildren living with her.

4. Familial Challenges and Emotional Strain

A significant portion of the episode delves into the emotional and practical challenges Deborah faces with her adult sons and their families living under her roof.

Deborah (03:07):
"Because they got no place else to live. One injured his back, he's got like a 10 vertebrae fusion. He's looking to get on SSI. He hasn't worked in a couple of years. And then the other one, he's got three kids, 12 year old, a 10 year old and a 7 year old."

Rachel and Dave express empathy while highlighting the necessity of setting boundaries to protect Deborah's financial well-being.

Rachel (03:57):
"These are my sons. My blood son. Yep. Yeah. It's heartbreaking. I mean, it's, it's a mess."

5. Expert Advice: Steps to Financial Recovery

Rachel Cruze offers a clear and actionable plan to help Deborah alleviate her financial burden.

Rachel (04:21):
"There has to be a conversation of I can't support you, nor should I. They are grown adults and, and you need to give them a Runway, Deborah. 30, 60 days."
(Timestamp: 04:21)

The primary recommendation involves selling Deborah's condo to eliminate the mortgage and free up $200,000, which could then be used to pay off her $70,000 credit card debt.

Rachel (04:46):
"If you sell the condo, go move in the debt-free house. You have 200 and then you have $275,000. Pay off the credit cards, you have 200 grand."

Dave Ramsey reinforces this strategy, emphasizing its effectiveness in providing immediate relief and setting Deborah up for future stability.

Dave Ramsey (05:02):
"Life like this is an immediate turnaround, Deborah. And it makes the most sense."
(Timestamp: 05:02)

6. Addressing Concerns About Family Well-Being

Deborah expresses concern about her grandchildren potentially facing homelessness as a result of her actions to stabilize her finances.

Deborah (06:01):
"What about my grandkids, though? What about make my grandkids homeless?"
(Timestamp: 06:01)

Dave addresses this by asserting the importance of Deborah prioritizing her own financial health, even if it means making difficult decisions regarding her family.

Dave Ramsey (06:44):
"That's not your problem. I know that sounds heartless. It shouldn't, but I feel like it does. But that's not your problem."
(Timestamp: 06:44)

7. Setting Boundaries and Moving Forward

Rachel and Dave stress the importance of boundary-setting, encouraging Deborah to take decisive action to regain control over her finances.

Rachel Cruze (09:03):
"You need to sit them down and you need to let them know, hey, in the next 60 days, I'm putting the condo up for sale. I can't afford this anymore..."
(Timestamp: 09:03)

Dave Ramsey (09:48):
"Create your free EveryDollar budget today. The simplest way to budget for your life."
(Timestamp: 09:48)

Their guidance culminates in a practical roadmap: sell the condo, move to the mortgage-free inherited home, pay off debts, and eliminate reliance on credit cards for utilities. Additionally, they recommend utilizing budgeting tools like EveryDollar to maintain financial discipline.

8. Conclusion and Final Takeaways

Deborah's story serves as a poignant reminder of the complexities that intertwine personal relationships and financial responsibilities. The Ramsey Network's compassionate yet firm advice underscores the necessity of making tough decisions to secure one's financial future. By prioritizing her financial health, Deborah can not only alleviate her current debt but also set a foundation for a more stable and secure retirement.

Notable Quotes:

• Deborah (00:20): "I have two houses. One I was renting out. The renter went away, totally trashed the place, left the place broken... $70,000 worth of credit card debt."

• Rachel Cruze (04:21): "They are grown adults and, and you need to give them a Runway, Deborah. 30, 60 days."

• Dave Ramsey (05:02): "Life like this is an immediate turnaround, Deborah. And it makes the most sense."

• Dave Ramsey (06:44): "That's not your problem... But that's not your problem."

• Rachel Cruze (09:03): "You need to sit them down and you need to let them know... I'm putting the condo up for sale."

• Dave Ramsey (09:48): "Create your free EveryDollar budget today. The simplest way to budget for your life."

Deborah's journey highlights the importance of proactive financial management, the courage to set boundaries, and the value of seeking expert advice during challenging times. This episode offers invaluable lessons for anyone grappling with similar circumstances, reinforcing that with the right strategies and support, overcoming financial adversity is achievable.