Podcast Summary: The Ramsey Show Highlights

Episode: "I Opened An Arcade And Now I’m Bankrupt"

Date: January 19, 2026
Host(s): Ken Coleman & Jade Warshaw (Ramsey Network)
Caller(s): Anonymous (Arcade Owner)

Episode Overview

This episode features a caller seeking advice after his attempt to open a community arcade resulted in significant debt and business failure. He turns to Ken Coleman and Jade Warshaw for practical guidance on whether he should file for bankruptcy or attempt to pay off the business and personal debt incurred. The discussion centers on the real challenges of small business, underestimating startup costs, and the critical importance of strategic decision-making amid financial struggles.

Key Discussion Points & Insights

1. Situation Background & Financial Strain

• Caller and his wife started a local business, later branching out to open an arcade with community appeal.
• Initial partnership: He provided space, collaborators supplied games.
• Ran into operational issues; pivoted to purchasing their own equipment.
• Unexpected bank fees consumed their entire marketing/advertising budget, setting them back from the outset.
• Business failed to attract sufficient foot traffic; the location ultimately closed.
• They moved arcade equipment to a new location as a profit-share with a bowling alley/restaurant, but this isn’t profitable.

Quote:
"I kind of started out behind the, behind the ball on it and tried to play catch up the whole time and it just never happened."
— Caller [01:52]

2. Financial Scope of the Problem

• Debt from arcade venture: $25,000
• Total debt (including other business activity): $68,000
• Equipment resale value is roughly half the initial investment: $10,000–$12,000.

Quote:
"Probably maybe 10, 12 [thousand]."
— Caller, estimating equipment value [04:16]

3. Lack of Marketing and Visibility

• Marketing budget of $2,000 was lost to unforeseen bank fees.
• Inadequate signage: No sign on the building, limiting visibility and foot traffic.

Memorable Exchange:
Jade: "There's no sign on the building. There's no sign on the building."
Caller: "I couldn't get the signage. Not appropriately."
[05:18]

4. Current Revenue Approach & Long-term Viability

• Equipment now profit-shared in another venue, bringing in minimal revenue.
• Caller hopes the new location simply covers ongoing debt payments for machines.

Ken’s probing:
Ken: "But you can't make a living on, you cannot make a living on this. Yes or no?"
Caller: "No. That is my hope for this, is that … we can just make enough to pay the payment for the debt for those games."
[06:11]

5. Should the Caller File Bankruptcy?

• Ken and Jade advise against bankruptcy.
• Previous recommendation would have changed if debt was only $25K, but total is $68K.
• Ken: It’s not a viable business—caller needs to pivot to full-time employment.
• Jade: Urgent, decisive action required—caller must find a job, stop discretionary spending, and use all extra income to pay down debt quickly.

Key Advice:
Jade: "If the total of all your debt altogether is $68,000, … pick up a full-time job yesterday, take your wife's income, and you’re going to pay this off as quickly as possible. You're not going out to eat. You're not doing anything. You’re selling a car if you need to."
[07:45]

Notable Quotes & Memorable Moments

• On underestimating risk:
  "Instead of going back to underwrite the additional fees … I said I'm sure it'll be fine, I can figure it out." — Caller [01:52]

• Facing the cost of missing marketing:
  "If you had a $2,000-a-month ad spend or marketing spend and that is now eaten up in fees that you didn't know were going to be there, my first intuition would be … how can I go out and earn this money elsewhere so we can get our ad spend up …" — Jade [05:07]

• Tough love from the hosts:
  "You need a full-time job. I'll just throw that out there." — Ken [06:59]
  "Cut your losses here." — Jade [07:11]

Timeline of Important Segments

• [00:23] — Caller describes initial business venture and the pivot to an arcade.
• [01:10] — Debt details: $25,000 linked to the arcade.
• [01:52] — Caller recounts being set back by unexpected bank fees.
• [04:12] — Equipment resale value estimated at half investment.
• [05:18] — No sign on building, severely hampering visibility.
• [06:03] — Arcade games moved to profit-share model in new venue.
• [06:23] — Hosts begin to address the bankruptcy question directly.
• [06:42] — True scope: $68,000 total debt.
• [07:18] — Wife’s income disclosed ($75,000/year).
• [07:45] — Hosts’ concluding action plan: get a job, slash spending, focus on debt payoff.

Conclusion

This episode delivers candid and practical financial coaching. The hosts highlight the pitfalls of underestimating costs, the vital role of marketing, and the emotional toll of business failure. Their tone is encouraging but direct—providing a pathway forward focused on aggressive debt repayment and a firm stance against further risking family finances in a struggling business.

Takeaway:
Cut losses, regain stability through employment, and treat the failed venture as a tough but valuable lesson in entrepreneurship and personal finance.