I Want To Pay Off My Debt But My Parents Have Other Plans

Summary

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The Ramsey Show Highlights: "I Want To Pay Off My Debt But My Parents Have Other Plans"

Date: September 2, 2025
Hosts: Dave Ramsey & Chris Hogan
Caller: Jeff

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Overview

In this episode, Jeff, a new listener inspired by the Ramsey Baby Steps, seeks advice on whether to use his savings to pay off debts or follow the alternate guidance of his parents and mother-in-law to pay down his mortgage instead. Dave Ramsey and Chris Hogan give direct, practical advice on the order of financial priorities, the power of the Ramsey plan, and the importance of unity with one’s spouse.

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Key Discussion Points & Insights

1. Jeff’s Financial Dilemma (00:10–01:04)

• Jeff introduces himself: He's fired up by the Baby Steps, is on Baby Step 2, and has savings he could use to eliminate debt.
• Conflicting advice: His father and mother-in-law, independently, suggest he put his savings toward his mortgage, which confuses him.

2. Evaluating the Advice (01:04–01:33)

• Dave Ramsey challenges traditional wisdom:
  • Questions if Jeff owes any obligation to his parents' or in-law's advice.
  • Dave is blunt:
    • “I think their advice is stupid. I think they mean well, but it’s dumb.” (Dave Ramsey, 01:04)
  • He emphasizes following the proven Baby Steps process:
    • “We have led more people out of debt into millionaire net worth than any other organization operating in America today.” (Dave Ramsey, 01:11)

3. The Power of the Baby Step Order (01:33–01:41)

• Chris Hogan explains importance of process:
  • “Through and you follow it in order too. That’s another thing is some people go out of order and all of it and you’re not gonna see the progress as quickly.” (Chris Hogan, 01:33)

4. Jeff’s Numbers Breakdown (01:41–02:52)

• Monthly savings gained by paying off debt: $500/month (01:49)
• Total debt: $12,500 (01:51)
• Current savings: $22,500 (02:50)
• Household income: $75,000/year (02:39)
• Ramsey calculation:
  • After paying off debt, Jeff will have ~$10,000 left.
  • With no debt, he could rebuild his emergency fund, saving $1,000–$1,500/month (02:23; 02:25).
  • Dave’s recommendation: “Crank that up to about 1500 and you know, get on beans and rice. Rice and beans. And let’s get that emergency fund rebuilt.” (Dave Ramsey, 02:25)
  • Dave wants Jeff to have $20,000 set aside for emergencies (02:40).

5. The Path Forward (02:52–03:11)

• Action plan:
  • Pay off debt, bring savings down to $10,000.
  • Replenish emergency fund to $20,000 in about 7 months with aggressive saving (02:59).
  • Then move forward to investing and paying off the house (Baby Steps 4, 5, and 6).
• Dave’s summary:
  • “That would be my plan if I’m you.” (Dave Ramsey, 02:59)

6. The Emotional Side of Debt Freedom (03:11–03:19)

• Chris Hogan’s insight:
  • “From a mathematical and an emotional standpoint, when you have no payments, it frees you up.” (Chris Hogan, 03:11)

7. Importance of Marital Unity (03:19–03:30)

• Dave’s final advice:
  • “Now, the one vote that does count is your wife’s. And so the two of you need to be in agreement on that before you move forward.” (Dave Ramsey, 03:19)

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Notable Quotes & Memorable Moments

• Dave Ramsey (01:04): “I think their advice is stupid. I think they mean well, but it’s dumb. …This process works. In other words, it’s a proven process if you follow it all the way.”
• Chris Hogan (01:33): “Some people go out of order and all of it and you’re not gonna see the progress as quickly.”
• Dave Ramsey (02:25): “Get on beans and rice. Rice and beans. And let's get that emergency fund rebuilt.”
• Chris Hogan (03:11): “From a mathematical and an emotional standpoint, when you have no payments, it frees you up.”
• Dave Ramsey (03:19): “Now, the one vote that does count is your wife’s.”

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Important Segments with Timestamps

• Caller’s Background & Dilemma: 00:10–01:04
• Dave Refutes Parents’ Advice: 01:04–01:33
• Importance of Order in Baby Steps: 01:33–01:41
• Jeff’s Financial Numbers: 01:41–02:52
• Step-by-Step Plan: 02:52–03:11
• Why Debt Freedom Matters: 03:11–03:19
• Marital Agreement: 03:19–03:30

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Summary

Dave Ramsey and Chris Hogan reinforce the importance of sticking with the proven Baby Steps in the proper order, even when well-meaning family members offer alternate strategies. They walk Jeff through the numbers, showing how erasing debt first will quickly free up cash flow and emotional energy. Both hosts underscore marital unity in financial decisions and wrap up by urging Jeff to ignore outside noise and follow the step-by-step plan to freedom.

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Transcript

[Dave Ramsey]

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[Caller (Jeff)]

I recently stumbled across your show. I've watched your baby steps explained a couple of times and it's got me on fire to really nail down my finances. So I'm on baby step two. I've got a few, I've got a few loans to pay off and I've got some savings. I'm thinking of taking those savings and wiping out those debts, moving on to baby step three.

[Dave Ramsey]

Awesome.

[Caller (Jeff)]

But my dad and my mother in law both independently suggested that I put the money towards my mortgage instead. And I'm confused.

[Dave Ramsey]

You're married.

[Caller (Jeff)]

I'm missing.

[Dave Ramsey]

Do they, do you work for them?

[Caller (Jeff)]

No, I went to them for counsel. Why? Wanted to get their advice. Oh.

[Dave Ramsey]

Oh, okay. So you ask them to vote on this. Okay.

[Caller (Jeff)]

Yes.

[Dave Ramsey]

Well, I mean you've got to decide what you think is wise, what they said or what we say.

[Caller (Jeff)]

Okay.

[Dave Ramsey]

I think their advice is stupid. I think they mean well, but it's dumb. Okay. We have led more people out of debt into millionaire net worth than any other organization operating in America today. And neither one of them worked for me.

[Caller (Jeff)]

Right.

[Dave Ramsey]

So I mean it's. This process works. In other words, it's a proven process if you follow it all the way.

[Chris Hogan]

Through and you follow it in order too. That's another thing is some people go out of order and all of it and you're not gonna see the progress as quickly.

[Dave Ramsey]

Yeah.

[Chris Hogan]

Jeff, if you paid off all of your debt today, how much of your income would you save per month? That would not be going out in payments?

[Caller (Jeff)]

About $500 a month.

[Chris Hogan]

Okay.

[Dave Ramsey]

Okay. And how much is your debt total, hun?

[Caller (Jeff)]

12 and a half thousand.

[Dave Ramsey]

Okay. All right. And so if you put $1,000 away, you're going to put 12,000 back in one year. Agreed. How much can you do? How much can you put on your baby step three if you don't have any debt to build your emergency fund back up because you're using your savings to clear your debt. How much a month can you put back into savings with no debt payments?

[Caller (Jeff)]

I'm thinking right around $1,000 a month.

[Dave Ramsey]

Okay. Yeah. I want you to crank that up to about 1500 and you know, get on beans and rice. Rice and beans. And let's get that emergency fund rebuilt. I need that for your sake. I want you to have. What's your household income?

[Caller (Jeff)]

About 75k.

[Dave Ramsey]

Okay, cool. Yeah. I want you to have 20 grand set aside for emergencies. Grandma's rainy day fund. And how much have you got in there today in savings?

[Caller (Jeff)]

Right now I've got about 22 and a half.

[Dave Ramsey]

Perfect. Okay, so you're going to take it down to 10 by writing a check for 12 and a half, correct?

[Caller (Jeff)]

That's right. Yep.

[Dave Ramsey]

And then you got to raise it back up to 20. And if you do that, 1500amonth, you're done in like seven months. And that, that would be my plan if I'm you. And then get on through and let's get the investing going and start paying off the house and baby steps four or five and six.

[Chris Hogan]

But get that consumer debt cleared out. Jeff, from a mathematical and an emotional standpoint, when you have no payments, it frees you up.

[Dave Ramsey]

Yeah. Now, the one vote that does count is your wife's. And so the two of you need to be in agreement on that before you move forward. But that's what we would tell both of you to do. So. And again, your parents mean well, but their plan's dumb if anyone. Depends on your income. You need affordable term life, never cash value insurance. Visit Zander.com today for quotes.