I Have To Put My Utilities On Credit Cards

Summary

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.

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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."

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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.

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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.

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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."

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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)

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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)

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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.

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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.

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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."

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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.

Transcript

[Deborah]

Brought to you by the EveryDollar app. Start budgeting for free today. Hi, guys. I need some advice. I'm in trouble.

[Dave]

Oh, no. You sound like you're in the corner. You remember, like, when we were kids, your parents sent you to the corner? Sound like you might be in the corner. Deborah, let's go. No shame in your game. What's going on?

[Deborah]

Yeah, definitely on the cusp. Okay. I have two houses. Okay. 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.

[Rachel]

Because of the house or because of other things?

[Deborah]

The house. Trying to get people to help get it repaired, that kind of thing. It's still sitting. Not repaired. It's been eight months, so I've lost that income. And then my income went down from five days a week to three days a week. So that also hit me. Plus, I had, like, knee surgery. 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. And so 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.

[Rachel]

All right, this house. Let's talk about this house. Deborah, The. The rent. How much do you owe on it?

[Deborah]

On. On the rental? I owe zero. Oh, it's paid for. The. It's paid for. I inherited from my father.

[Rachel]

Oh, wow.

[Dave]

Okay.

[Deborah]

I figured when I'm 65, I'd move there and retire. And there you go. Have no mortgage. Meanwhile, my other little home, which is condo, I owe about $114,000 on.

[Rachel]

Okay.

[Deborah]

And that's the one I'm currently living in.

[Rachel]

Okay. How much is the. Is the house that your dad left you? How much is that worth?

[Deborah]

Oh, probably about 650,000.

[Rachel]

Okay. How much is the condo worth?

[Deborah]

Probably about 400,000.

[Rachel]

Okay. And where do you want to be long term, the condo or the home?

[Deborah]

Well, in the home, because condos, upstairs kind of thing.

[Rachel]

Okay.

[Deborah]

You know.

[Rachel]

Yep. For sure.

[Deborah]

I like where I live, but like I said, I've got. I've got grown children living with me. We're talking 30s.

[Rachel]

Why are they living with you?

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[Rachel]

Why are they living with you?

[Deborah]

Because they got no place else to live. One, 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. And believe me, we, we don't have room. You know, I've got people sleeping on the couch, you know, but I've been paying all the bills and I've asked for help. They don't help. One of them can't. He just doesn't even have a job anymore. The one that does work construction, he does have income, but he doesn't contribute. Andy doesn't want to help do the repairs. That was part of the thing is he was supposed to repair the, the one house, the rental house. And he's been, I guess he's been baloney, giving me a bunch of baloney for months on end here.

[Rachel]

These are sons.

[Deborah]

These are my sons. My blood son.

[Rachel]

Yep. Yeah, it's heartbreaking. I mean it's, it's a, it's a mess. The boundaries here are completely, yeah, intertwined. And it's not working for you, Deborah. And so you're not able to help people when you're drowning and you're drowning, you're putting your utilities on credit cards. You can't afford this life anymore. So, so they need to leave. I mean like, like, yeah, 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. And because you can't afford it. Like you guys, you can't afford this situation. And so, so what I would do, do you want to be in the, would you want to be in the house? I mean, I would sell the condo, go move in the debt free house. You know, you have 200 and then you have $275,000. Pay off the credit cards, you have 200 grand. And now you get to live your.

[Dave]

Life like this is an immediate turnaround, Deborah. And it makes the most sense.

[Deborah]

Yeah. And that would be the rest of my income for the rest of my Life. I am 62 right now.

[Rachel]

What do you have in retirement?

[Deborah]

Yeah, about 6000.

[Rachel]

Okay, so you. So, yeah, so you're gonna have to up your income. You are gonna have to work longer, but you'll have that 200 grand, and that's not going to be enough probably for retirement long term. So you are going to have to be working some more. But this will. This will fix a lot of this mess right now.

[Deborah]

Yeah, that's. That's what I'm. I'm trying to figure out.

[Rachel]

Yeah. So that's.

[Deborah]

I'm literally having to borrow money even to pay the minimums right now.

[Rachel]

Yeah.

[Deborah]

And that's from other people.

[Rachel]

Yep. Yep.

[Dave]

Well, there's nothing to figure out. I mean, I want you to understand that you have one clear option here, and it's the option we just gave you. And this is going to get you out of this desperate situation, this wacky situation. Quite frank. It's not desperate, it's just wacky. And set you up for the future now. You're right. But you at least got a $200,000 head start. And you're going to have to work and you're going to sock away as much money as possible. We'd love to see you get a Smartvestor Pro if you do not have one. And let's map out what do we need to the next five to seven to eight to maybe 10 years to make sure that you have more margin as you age. But at least you got it paid for. A home. That is also a tremendous asset for you as well.

[Deborah]

Yeah, no, it's a blessing. And I. I know it is. But, you know. And what about my grandkids, though? What about make my grandkids homeless?

[Dave]

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. You've got. Those are grown men. They need to step up and take care of business.

[Deborah]

No, I agree on that. And I don't feel like I'm doing them any favors because I take care of too much. And I've tried to back off of that, too, because I.

[Dave]

But that's the answer to your question.

[Deborah]

They don't care.

[Dave]

But you just answered your own question, by the way, more effectively than I did. Your little speech you just gave is the speech you need to remind yourself when you say, what about my grandkids? I don't want to Be this big, mean grandmother that kicks them out on the street. That's not what you're doing, number one. But number two, you need to remind yourself of that speech you just gave. It was a great speech.

[Deborah]

I'm trying.

[Rachel]

And. And the. In the. And the dad of the three kids has a job, correct?

[Deborah]

Well, he does construction, so he works here and there. That kind.

[Rachel]

So, Deborah, you said. I mean, whenever he wants. Okay, yeah, he can work whenever he wants. And this isn't. I'm. I'm being a little harsh on you, Deborah, because you've allowed it, right? He's. He's. He's living the best life.

[Dave]

Yeah.

[Rachel]

Everything's paid for. He works when he can. He doesn't pay bills. He pay. He does nothing.

[Dave]

This guy's literally the character in Wedding Crashers. Ma, me loaf. I mean, he yells and you come running, you know, Might as well give him a little silver bell on.

[Deborah]

On. On the big things. And. And the thing is, he. He actually made more than I did last year, and he still can't help me with utilities or nothing like that. And I'm begging him. I'm begging him.

[Dave]

You know what? He's a. Yeah, well.

[Rachel]

Well, that. That's where. That's a boundary, Deborah, you have to set for yourself. You've asked. You can't control what he's doing, and so now you have to control what Deborah can control. And you have to set yourself up in the next. What. What Kim just said. The next eight years to allow you to win. Because at the end of the day, they're not helping you. Right? It's not like you're falling back on. On them.

[Dave]

So he can't help you with utilities. You can't help him anymore, period. It's a grown man. I wish he. I'm telling you, I wish I could have a chat with this guy. I really do. This is. This is embarrassing. He ought to be embarrassed how he's treating his mother now. I understand. I'm talking about your baby. I get that. But you called, and you're looking for advice, and your heart is literally getting you in trouble.

[Deborah]

I know it. I know it. And like I said, I. I depended on him to help me. Like, you know, with the repairs on the rental house. So Deborah says, we're shooting ourselves in the foot.

[Rachel]

So tonight, Deborah.

[Deborah]

Got it.

[Rachel]

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, and I'm going to have to make some hard calls because I have nothing in retirement and I'm going to have to do what's best for me in this situation. And so that is selling the condo, moving to the home, doing some repairs in between. It's not going to probably be perfect when you move in, but at least you have a mortgage payment or a rent payment. So, gosh, Deborah, I'm sorry, but that's, that's what I would do. Cut up the credit cards. Don't keep going down that mess that's getting you more, more and more. And when you don't have the temptation of the credit card, then your feet are to the fire. And that's really going to force you to make some hard decisions, which is good. You need some of that.

[Dave]

You ought not to treat your mama that way. Create your free every dollar budget today. The simplest way to budget for your life.