I Owe Money On 27 Different Credit Cards!

Summary

Podcast Summary: The Ramsey Show Highlights – "I Owe Money On 27 Different Credit Cards!"

Episode Information:

• Title: I Owe Money On 27 Different Credit Cards!
• Host/Author: Ramsey Network
• Release Date: April 7, 2025

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Introduction

In this episode of The Ramsey Show Highlights, hosted by the Ramsey Network, Dave Ramsey and co-host George Kamel address a financial predicament shared by a listener named Mark. Mark reaches out to seek advice on managing his overwhelming credit card debt and lack of savings despite a substantial income.

Caller Introduction and Financial Situation

[00:07] Mark:
"I make about 125,000 a year, and last year I made 125. And then I got a bonus of like 70,000 last year too. And right now I don't have anything in my savings. I don't have anything in my checkings. I'm broke. I'm paying my very minimums on my credit card. I got about 27 credit cards. I pay the minimum. And it's like every day I'm paying a minimum on one of those cars and it's like I miss a card one one month and I forgot I had one. So I'm writing them in my calendar."

Mark lays out a concerning financial landscape: an annual income of $125,000 supplemented by a $70,000 bonus, yet he finds himself without savings or checking account balances. His primary struggle lies in managing 27 credit cards, each requiring minimum payments, leading to a perpetual cycle of debt.

Discussion on Spending Habits

Dave Ramsey:
"How much do you own credit card?" [00:59]

Mark:
"About 12,000." [01:04]

While Mark has a total credit card debt of approximately $12,000, the issue extends beyond the numbers. Ramsey probes deeper into Mark's financial habits to identify root causes.

George Kamel:
"If we looked at your bank statement and saw where all this money went, where are the top few things we would see?" [01:20]

Mark:
"Food. Eating out grocery store." [01:27]

George highlights that Mark's expenditure on food, particularly eating out and groceries, is unusually high, questioning the sustainability of such spending.

Mark:
"Buying too many things, I guess." [01:39]

Mark acknowledges impulsive buying as a significant factor contributing to his financial strain.

Dave Ramsey:
"What's the most expensive thing you bought last year?" [01:43]

Mark:
"Riding a lot more. Four grand." [01:49]

Dave further delves into specific expenses, uncovering a $4,000 expenditure on activities like riding, which adds pressure to Mark's already tight finances.

Mark:
"Marijuana. If that's considered, you know, just self-medicating. Just trying to get. Just trying to get out of debt..." [02:16]

Mark admits to using marijuana as a coping mechanism for his financial stress, which, while not the primary issue, exacerbates his financial mismanagement.

Dave Ramsey's Recommendations

Dave Ramsey offers a candid and structured approach to guide Mark out of his financial turmoil:

1. Eliminate Credit Card Usage: [02:54] Dave Ramsey:
   "Stop the bleeding. No more use of credit cards and no more credit cards."

   Ramsey emphasizes the immediate cessation of credit card use to prevent further debt accumulation.

2. Create a Detailed Budget: [03:02] Dave Ramsey:
   "We're going to do a written, detailed budget and make 120,000 plus bonuses behave..." [03:09]

   Implementing a strict budget ensures that every dollar is accounted for, prioritizing essential expenses and debt repayment.

3. Prioritize Debt Repayment: [04:38] Dave Ramsey:
   "Throw everything else at the debt." [04:50]

   All non-essential funds should be directed towards eliminating debt, starting with the smallest balances to build momentum.

4. Emotional and Mental Shift: [05:02] Dave Ramsey:
   "When you're attacking this instead of this mess attacking you."

   Ramsey encourages Mark to adopt a proactive mindset, viewing debt elimination as a mission that safeguards his family's future.

5. Practical Steps: [03:05] Dave Ramsey:
   "Get scissors out, light a candle and chop every one of them up." **[03:09]

   Symbolically destroying credit cards represents a commitment to financial change.

Additional Debt and Support Obligations

Mark reveals more layers to his financial challenges beyond credit card debt:

Mark:
"I have a vehicle. 18,000." [06:03]

Dave Ramsey:
"Have you got a girlfriend you've been helping?" [06:03]

Mark clarifies that he is separated from his wife but continues to support her and their children financially.

Dave Ramsey:
"I think you're throwing more than that. And you don't realize it because you're wanting to be a good guy. Because you are a good guy." [06:32]

Ramsey stresses the importance of prioritizing support for his children over other financial obligations, suggesting that emotional impulses may be diverting funds away from debt repayment.

Conclusion and Next Steps

Dave Ramsey concludes by reinforcing the urgency of Mark's situation and the feasibility of overcoming it:

Dave Ramsey:
"You could be out of credit card debt in just a couple of months. You'd be 100% free of credit cards." [05:56]

He assures Mark that with disciplined budgeting and focused debt repayment strategies, financial freedom is attainable in a relatively short timeframe.

Final Advice:

• Implement EveryDollar Budget:
  "Create your free every dollar budget today. The simplest way to budget for your life."

Ramsey encourages listeners to utilize budgeting tools like the EveryDollar app to maintain financial discipline and track progress effectively.

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Key Takeaways:

• Stop Using Credit Cards: Immediate cessation can prevent further debt accumulation.
• Detailed Budgeting: Allocating every dollar ensures financial priorities are met.
• Debt Repayment Focus: Prioritizing debt elimination leads to financial freedom.
• Emotional Discipline: Managing stress and emotional impulses is crucial for financial stability.
• Support Prioritization: Ensuring that support for dependents does not derail financial goals.

Mark's story serves as a relatable example for listeners grappling with debt and overspending, illustrating the practical steps and mindset shifts necessary to regain control over personal finances.

Transcript

[Dave Ramsey]

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

[Mark]

I've been listening to you guys every morning on my way to work on the satellite radio. Like the car and I got into a mess here. I make about 125,000 a year, and last year I made 125. And then I got a bonus of like 70,000 last year too. And right now I don't have anything in my savings. I don't have anything in my checkings. I'm broke. I'm paying my very minimums on my credit card. I got about 27 credit cards. I pay the minimum. And it's like every day I'm paying a minimum on one of those cars and it's like I miss a card one one month and I forgot I had one. So I'm writing them in my calendar. So every day my calendar is filled with a minimum payment that I got to pay to a credit card company.

[Dave Ramsey]

How much do you own credit card?

[Mark]

I can't.

[Dave Ramsey]

How much is the credit card debt total?

[Mark]

About 12,000.

[Dave Ramsey]

Okay, you made $200,000 with your bonus. What'd you do with it?

[Mark]

I don't know. I. I really don't know. I don't know. I'm trying to figure out. That's what I'm trying to figure out. What I do.

[George]

If we looked at your bank statement and saw where all this money went, where are the top few things we would see?

[Mark]

Food.

[George]

Eating out grocery store.

[Mark]

Yeah. Eating out grocery store.

[George]

No one spends ten grand a month at the grocery store, though. What are your vices?

[Mark]

Buying. Buying things. Buying too many things, I guess.

[Dave Ramsey]

What did you buy? What's the most expensive thing you bought last year?

[Mark]

Riding a lot more.

[Dave Ramsey]

Okay. What did it cost?

[Mark]

Four grand.

[Dave Ramsey]

Okay. That's a lot of twice. Yeah. All right. Are you. Are you sports betting?

[Mark]

No sports betting? Just. No, no sports betting. I don't do any sports betting.

[Dave Ramsey]

You're doing drugs.

[Mark]

Marijuana. If that's considered, you know, just self medicating. Just trying to get. Just trying to get out of debt, you know, maybe that you.

[Dave Ramsey]

Okay? I'm just trying to find the money. I'm not throwing grenades. I'm just trying to find the money because $4,000 lawnmower. I still got 196,000 left. So it wasn't like you bought a $50,000 something that you can put your fingers on. So I'm still trying to find, like George said, where the money went. All right, so. All right, first let's establish that you're not having fun. You said that. And we need to get back to being on top of this mess instead of this mess being on top of you. Is that a good goal?

[Mark]

Yes, sir. Yes, sir.

[Dave Ramsey]

Okay. Have you. Have you got the credit cards near you right now?

[Mark]

No, I don't. I just. I don't know.

[Dave Ramsey]

Where are they? Where are they?

[Mark]

At home.

[Dave Ramsey]

Okay, when you get home tonight, I want you get scissors and light a candle and have a plastic to me party and chop them all up, every one of them. Okay?

[Mark]

Yes, sir.

[Dave Ramsey]

Why wouldn't you do that?

[Mark]

So, I mean, I hear you say it all the time. Cut them up. I mean, so what do you mean? Like literally cut them?

[Dave Ramsey]

Yeah, literally. Get scissors out, light a candle and chop every one of the stinking things up. They've stolen your life from you. Shoot them in the face.

[Mark]

Yeah.

[George]

How old are you, Mark?

[Mark]

52.

[George]

How long you been living like this?

[Mark]

The last two years.

[Dave Ramsey]

Yeah. I think there's nothing here fun. So the first thing we're going to do is stop the bleeding. No more use of credit cards and no more credit cards. That's step one. Step two is we're going to do a written, detailed budget and make 120,000 plus bonuses behave, and we're going to write it down, what we're going to do with it before the month begins. And if it's not on the budget, you don't do it. So you're not eating out, you're not traveling, you're not doing drugs, you're not doing anything. You don't have any money. You're a broke guy. And so broke people buy food, lights and water and they pay their rent and they throw everything else at the debt.

[Mark]

Okay?

[Dave Ramsey]

And that's what you're going to do. You're going to get real focused like your life depended on it. Because it does, my man.

[Mark]

Yeah.

[Dave Ramsey]

You won't need pot because you don't need to medicate when you're in control again.

[Mark]

Yeah.

[Dave Ramsey]

When you're attacking this instead of it attacking you is what I'm talking about. You feel that in motion?

[Mark]

What was that, sir?

[Dave Ramsey]

I said when you're attacking this mess instead of this mess attacking you. There's a growl in that. Do you feel that emotion?

[Mark]

Yes, sir.

[Dave Ramsey]

All right, this is time. Throw the shoulders back and knock the crap out of some stuff. Hit it. Hit it hard. Like it's threatening your family. Like it's threatening someone you love. Because it is. I love you and it's threatening you. You need to put a stop to this crap and hit it hard. And that involves stopping everything that money's going out to and start throwing it all at the credit cards. The great news is you could be out of credit card debt in just a couple of months. You'd be 100% free of credit cards. But the credit cards really aren't your problem because you only owe 12 grand. The credit. What's the problem is, is you have no idea where a lot of money's going. It's almost like you're in Congress.

[Mark]

Yeah. Yes. Yeah.

[George]

Do you have other debt, Mark? You know, do you have other debts other than the credit cards?

[Mark]

I have a. I have a vehicle. 18, 000. I bought, you know, bought, you know, one of those car vending machines online and.

[Dave Ramsey]

Have you got a girlfriend you've been helping?

[Mark]

No, just helping. My, my, you know, my, my wife. I'm separated from, you know, helping her and the kids.

[Dave Ramsey]

Okay. How much money you throw in that direction?

[Mark]

I probably threw maybe like 15, 000 that direction. 15?

[Dave Ramsey]

Yeah. I think you're throwing more than that. And you don't realize it because you're wanting to be a good guy. Because you are a good guy. I want you to help your kids, okay? I don't care about your ex. She's your ex. That's how that works, okay? If she's not your ex, you take care of your take care of her. But until she, when she's your ex, you take care of your babies. And you're very careful and very wise about that. Hang on. We're going to get you set up with every dollar and get you going on a budget, brother. Create your free every dollar budget today. The simplest way to budget for your life.