I Just Discovered We're $172,000 In Debt!

Summary

Podcast Summary: The Ramsey Show Highlights – "I Just Discovered We're $172,000 In Debt!"

Date: September 23, 2025
Host: Ramsey Network
Featured Experts: Dave Ramsey & team
Caller: Michelle

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Episode Overview

In this episode of The Ramsey Show Highlights, the hosts address a listener's (Michelle's) shocking realization of her family's deep debt—$172,000 across credit cards, personal loan, auto loans, and a mortgage. The team walks Michelle through the source of her financial struggles, identifies problematic purchases (notably two overvalued cars, including a heavily upside-down Honda Prologue electric car), and outlines practical steps toward financial recovery, focusing on unity, budgeting, and immediate action to halt financial decline.

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Key Discussion Points and Insights

1. Debt Discovery and Family Finances

• Michelle recently began managing finances jointly with her husband, revealing debt totals she hadn’t known: $50,000 in credit cards and $12,000 in a personal loan, all but $100 belonging to her husband.
• Quote (Michelle): "Recently. Just started watching your stuff and I. We had not been doing finances together... That's when I discovered all this debt." (00:06)

2. Total Debt Breakdown

• Household income: $122,000/year ($101k his, $21k hers)
• Credit cards + personal loan: $62,000
• Car loans: $110,000 (one car $65k owed, the other $45k owed)
• Mortgage: $315,000
• Quote (Host): "You have $110,000 in cars." (01:52)

3. The Core Problem: Car Purchases

• The hosts identify the overvalued, rapidly depreciating vehicles as the main source of financial strain.

• Quote (Dave Ramsey): "Your cars stole your food money." (01:59, 02:38)

• The credit card debt was accrued mainly to cover household expenses since so much income was directed to vehicle loans and living costs.

• Quote (Dave Ramsey): "Your husband has not been irresponsible. Except for the time that he went to the car lot." (02:42)

4. Vehicle Value Collapse

• The most problematic car is a nearly-new Honda Prologue (electric), with $65,000 owed but only $30,000 (trade-in value)—a $35,000+ loss.

• The second car: $45,000 owed, $27,000 trade-in (approx. $18,000 loss).

• Quote (Dave Ramsey): "Honda electric cars have tanked in value. They're like jumping off a cliff with no parachute in value." (04:36)

• The team stresses urgency: keeping the vehicles will only worsen the financial pit, as values keep dropping rapidly.

• Quote (Dave Ramsey): "...if you keep it, it's going to keep tanking, and you’re going to look up, it's going to be worth 10 grand, and you're going to owe 55." (05:30)

5. Career and Disability

• Michelle is a former nurse on permanent disability ($21k annual income).
• The hosts express empathy, acknowledging both the income reduction and the difficulty of the situation (06:49).

6. Action Plan & Recommendations

• Immediate Steps:

  • Sell both cars, even at a substantial loss, to stop further financial decay.
  • Replace with inexpensive vehicles (~$5,000 each).
  • If possible, secure a credit union loan to cover the remaining negative equity post-sale.
  • Begin working together on budgeting (suggested: EveryDollar app).
  • Quote (Hosts): "If you can get the credit union to loan you enough money to get out of both of these, sell them both and get two $5,000 cars. That's a huge change in direction." (07:41)

• Reasoning:

  • Holding onto these cars will mean fighting against math for years, with no hope of getting ahead.
  • Working together and budgeting will allow them to attack other debts with increased momentum once the car problem is addressed.

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Memorable Quotes & Moments

• On Vehicle Depreciation:

  "Honda electric cars have tanked in value. They're like jumping off a cliff with no parachute in value."
  — Dave Ramsey (04:36)

• On Budgeting as a Couple:

  "The great news is you now know where you are. The great news is you're now working together."
  — Dave Ramsey (07:13)

• On Urgency:

  "You've got to stop the loss in value by getting rid of the car, because it's going to get worse and worse and worse at an increasing rate."
  — Dave Ramsey (05:35)

• On Facing the Numbers:

  "So it's almost like to save the patient, we're going to have to amputate the leg. You know, it's like, we got to stop the bleeding here."
  — Dave Ramsey (05:30)

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Key Timestamps

• 00:06: Michelle reveals debt discovery and combining finances.
• 01:17: Uncovering the auto loan balances and upside-down status.
• 01:59: Identification of car payments as the root of financial instability.
• 04:08–04:55: Discussing present market values of both cars and the shock at their depreciation.
• 05:10–05:28: Exploring possible causes for the negative equity (e.g., rolled-in prior car debt).
• 06:49–06:56: Michelle's career and disability status.
• 07:13–07:41: The recommended plan: sell cars, secure manageable vehicles, attack debts via budgeting.
• 08:14–End: Encouragement, hope for the future, and practical support.

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Conclusion

The hosts guide Michelle through confronting the hard reality of deep debt, emphasize teamwork and transparency as a couple, and prescribe bold, immediate action (selling the cars and switching to modest transportation) to prevent further losses and financial suffering. By identifying the true source of their hardship and committing to a combined, disciplined budget, Michelle and her husband are encouraged to start reversing their financial fortunes—with the support and empathy of the Ramsey team.

Transcript

[A]

Brought to you by the EveryDollar app. Start budgeting for free today.

[B]

So recently I found out this past weekend how much we actually have in debt with credit cards and a personal loan. Recently. Just started watching your stuff and I. We had not been doing finances together. He pays some, I pay some. But after learning a little bit, we joined finances, and that's when I discovered all this debt.

[A]

Wow. I'm so honored. I'm happy for you guys that you're doing this. I'm sorry you found that you're in a hole, but you can get out. This is awesome. How much debt did you find?

[B]

50,000 in credit cards and 12,000 in the personal loan.

[C]

Okay, so 62,000. What was the. Was the credit card debt yours and his and just combined its 50 or was it all his? All yours.

[B]

99.9% his.

[C]

Okay.

[B]

Okay. But he used the cards for utilities and groceries for household items.

[A]

Yeah, I got you. Okay. And what's your household income?

[B]

He makes 101,000 a year. I make 21,000.

[A]

Okay, so 122. That's good. Very good. No car debt.

[B]

Two cars, and they're upside down, so that's not a good situation either.

[A]

So this isn't your only debt. So how much do you owe on the car?

[B]

One car is 45,000. The other car is 65,000.

[A]

Whoa. Okay. And is there any other debt? Is there any other debt.

[B]

Besides mortgage? No.

[A]

Okay. And what do you owe on your mortgage?

[B]

315,000.

[A]

Okay. All right.

[C]

You have $110,000 in cars.

[A]

Tell you what. I can tell you for sure happened mathematically after doing this for 35 years.

[B]

Okay, okay.

[A]

Your cars stole your food money. Meet every dollar budgeters. Christy and Steve. They used to fight about money.

[B]

I'm the spender.

[A]

I'm definitely the saver. Now that they budget with every dol. They're on the same page. Money is definitely one thing we do not ever fight about.

[B]

Having the budget gave me the permission to spend.

[A]

Knowing that the money is in each category, it just allowed us to work together better. Now that's what we call a win win.

[B]

Now we just have to pick paint colors.

[A]

We can't help you with that. Everydollar, create your free account today. Your cars stole your food money.

[B]

Yeah.

[A]

And your food was put on a credit card. Your husband has not been irresponsible. Except for the time that he went to the car lot.

[B]

Yeah. You had to have an electric car.

[A]

Yeah. So you guys are broke. Your car broke, and he was trying to prop it up because there's not enough money to pay for these stupid cars and live. And he propped it up with credit cards. That's 100% what happened here. Your husband's not a bad guy. He was just trying to cover and make things happen.

[B]

Yes, and he wasn't trying to hide it for me. He didn't want me to worry. He said he's trying to work on it.

[C]

Yeah. And y' all were separate in it, right? He was just taking care of it. That was not.

[A]

We're not blaming him. I'm just saying that this credit card debt is not due to irresponsible spending. It is due to the irresponsible purchase of vehicles that you can't afford.

[B]

I agree with you. I just don't know what steps to take.

[A]

Okay, so on the $65,000 car, who's driving that one?

[B]

He is.

[A]

Okay, so it's a truck.

[B]

No, no. Electric car.

[A]

Oh, okay. Oh, crap. Which one?

[B]

Honda. Honda Prologue.

[A]

Okay. And you owe 65. Do you have any idea what the actual market value of this log is?

[B]

I looked up Kelly's Bluebook and it said 30,000.

[A]

Oh, gosh.

[B]

Yeah.

[A]

30,000 for trade in or private sale or.

[B]

Actually, I think it was trade in.

[C]

Okay, so it's better.

[A]

Probably worth 35. Okay. Which still sucks. So basically what we're saying is Honda electric cars have tanked in value. They're like jumping off a clip with no parachute in value. Okay. Wow. I didn't know they sucked that bad. Okay, that's really bad.

[B]

Yeah.

[C]

How about the $45,000 car? Do you know.

[B]

Do I know what it's. That's worth?

[C]

Yeah.

[B]

27. 27,000.

[A]

And that was trade in. So that's probably 32. Okay. All right. Okay. So $30,000 loss. When did you buy the Honda?

[B]

I'm sorry, I'm a little nervous. I can't think straight. Second in the. He's had it less than a year.

[A]

Did you have negative equity in another car that you traded on it?

[B]

I think he did. I think there was some negative equity.

[A]

Because, I mean, I know these electric cars suck on holding their value. It's just. They're pitiful. But I did not think you could lose $30,000 in one year. I think that's probably not right. So it's not. They don't. They're not that bad. So I hope either way you're there. Uh, okay, here's the problem. If you keep it, it's going to keep tanking, and you're going to look up, it's going to be worth 10 grand, and you're going to owe 55. Right. And so, you know, it's almost like to save the patient, we're going to have to amputate the leg. You know, it's like, we got to stop the bleeding here. There are too many. Too many amputations, too much blood in this metaphor. I got mixed metaphors going. But anyway, so we. To. Anyway, you've got to stop the loss in value by getting rid of the car, because it's going to get worse and worse and worse at an increasing rate. Okay. So. Wow. So sorry. Do you guys have any money? I haven't asked that.

[B]

No.

[A]

Okay. It's not surprising.

[C]

What do you make, Michelle? You make 22,000. What do you do for a living?

[B]

I was a nurse. I got injured, and I'm on disability now.

[C]

Okay.

[A]

A permanent disability.

[B]

Permanent disability, sorry. Yeah, yeah. Are there any out there working it?

[A]

So, yeah, because, man, you can make some bucks as a nurse. That's a very good career. Oh, man. All right, so anyway, back to the whole thing.

[C]

We got.

[A]

The great news is you now know where you are. The great news is you're now working together. And the great news is we have identified the problem, and it's called a Honda prologue, and it's caused all of this. It's all the result of buying a car.

[C]

And the $45,000.

[A]

I mean, like, I think all of it. Two cars. Two cars.

[C]

So a part of me would just take. If you can get a loan from the credit union, take the difference. You each go get $5,000 cars. I'd rather be $55,000 in debt than 110.

[A]

Yep, yep. I would. If you can get the credit union to loan you enough money to get out of both of these, sell them both and get two $5,000 cars. That's a huge change in direction. Yeah, it's going to. It's going to. Otherwise, you're going to struggle with this for a decade. And so we got to stop this thing going off a cliff, mathematically, because, I mean, you can tell from 65 down to 30. Right. In a heartbeat.

[B]

Right.

[A]

And we don't want to do that another year. Yeah, I don't want that for you. I want you to be free.

[C]

And then you guys. Yeah.

[A]

And you think you could get a loan at the credit union to cover the deficits on these cars?

[B]

I'm not sure now because his score of the credit's gone down.

[A]

Yeah. I'm gonna go sit down and talk to him. If you've got either one of these loans with the credit union, it's a real reason to talk to them because this is going to go sideways. It's bad. And then once you get that straightened up, you can address the other stuff pretty quick because you make good. You make good money. And now you're working together. The sun will come out. But we gotta get rid of.

[C]

You guys have two to three years. You gotta get rid of the law of intense. Intense.

[A]

What a plan.

[C]

Michelle.

[B]

Horrible car.

[A]

And I'm a Honda fan in general.

[C]

But that's not an electric fan.

[A]

Not an electric fan adds to it. Create your free every dollar budget today. The simplest way to budget for your life.