The Ramsey Show Highlights

Episode: I’m 58 And Drowning In Debt
Date: March 13, 2026
Hosts: Dave Ramsey & George Kamel
Guest: Lisa (Caller)

Episode Overview

This episode centers on Lisa, a 58-year-old single mom facing overwhelming debt—$60,000 in state tax debt, $60,000 in credit card debt, and $10,000 owed to the IRS. Despite earning a solid income, Lisa struggles to make ends meet and wonders if bankruptcy is her only choice. Dave Ramsey and George Kamel walk her through the roots of her debt crisis, confront her financial patterns, and chart an aggressive action plan to help her reclaim control without surrendering to bankruptcy.

Key Discussion Points & Insights

Lisa’s Debt Breakdown & Background

• Lisa’s Debt:

  • $60,000 state tax debt
  • $10,000 IRS debt (recently settled)
  • $60,000 credit card debt
  • Total: ~$130,000

• How Did the Debt Accumulate?

  • Divorce led to poor financial decisions with alimony
  • Maintained family lifestyle post-divorce out of “parental guilt”
  • Overspending to protect her kids from feeling the effects of the divorce
  • Personal struggles (recovery) contributed to the problem

  “I did a lot of spending out of like parental guilt, trying to make up that I'd lost.”
  — Lisa (00:46)

Assessing Lisa’s Current Financial Position

• Income:

  • ~$105,000 salary as administrative assistant
  • Additional ~$12,000/year from weekend work
  • Total take-home: ~$7,500/month

• Expenses:

  • $3,500/month rent in a high-cost area (Hartford)

  “Your rent is going to keep you from freedom here.”
  — George (03:13, 03:51)

• Lifestyle Choices:

  • Refused downsizing to maintain comfort for children (one still comes home from college)
  • Pays son’s car lease

  “You got to stop. That feeling of having to keep everything all right for them is what got you in $130,000 of debt.”
  — George (02:28)

Hosts’ Tough Love & Practical Guidance

• Downsize Housing Immediately

  • Cut rent from $3,500 to ~$1,500/month, even if commute increases
  • Reframe the need for a dedicated bedroom for adult children

  “It’s an air mattress in the living room... You being a burden because they have to cover mom’s expenses for the rest of her life because she’s broke is so much worse than them sleeping on an air mattress.”
  — Dave Ramsey (02:27, 02:49)

  • Lisa’s lease is up in June; time to search for cheaper options now

• Address Financial Enabling of Adult Children

  • Stop subsidizing adult children’s expenses (e.g., car payment/lease)
  • Have honest conversation with her son; if he cannot afford the lease, he must return the car or take over payments

  “The way we've been doing life with money and kids has to change today.”
  — George (05:52)

• Avoid Bankruptcy If At All Possible

  • Bankruptcy devastates credit and financial options into her mid-60s

  “If it's this or bankruptcy, I'll take a 20-minute commute... because that bankruptcy will destroy your financial life, at least for the next seven years.”
  — Dave Ramsey (04:39)

• Pause All Investing

  • Temporarily halt 401k contributions until debt is resolved

  “Let’s pause all investing to clean this mess up so that we can actually retire one day.”
  — Dave Ramsey (07:02)

• Plan a Debt Snowball Attack

  • Prioritize IRS and state tax debt (due to risk of wage garnishment)
  • Afterwards, use the debt snowball method: minimum payments on all except the smallest, which gets every available dollar

  “The IRS debt goes to the top because they can really screw up your life and garnish your wages. So I would attack that first... then just debt snowball it.”
  — Dave Ramsey (07:50)

• Budgeting Tools & Support

  • Utilize the EveryDollar app for granular control of spending and budgeting
  • Live on $4,000 a month; use the ~$3,500 of freed cash to attack debts
  • With focused intensity, Lisa could be debt free in 3 years, ideally by her 60th birthday

  “Let’s celebrate you becoming debt free. How cool would that be?”
  — Dave Ramsey (07:40)

Notable Quotes & Moments

• On Parental Guilt & Debt:

  “You don't need to earn your kids’ love by going deeper and deeper into debt.”
  — Dave Ramsey (08:58)

• On Budget & Sacrifice:

  “We're going to cover four walls: basic food, utilities, housing, transportation, insurance. And then beyond that, we are living like broke college kids because right now your kids are living more lavishly than you are.”
  — Dave Ramsey (08:40)

• On Motivation & Encouragement:

  “You got this, Lisa. We're cheering you on.”
  — Dave Ramsey (09:05)

Important Timestamps

• 00:05 — Lisa explains her debt and how she got here
• 01:35 — Lisa reveals high rent; George and Dave react
• 02:28 — George and Dave press for immediate change in housing
• 03:51 — George stresses rent as the main financial obstacle
• 05:00 — Discussion of car lease for adult son; need to transfer or eliminate payment
• 06:49 — Calculation of debt-repayment timeline
• 07:50 — Explaining the debt snowball method
• 08:40 — Dave details “four walls” budget and living like broke college kids
• 09:05 — Dave and George close with encouragement and practical help

Summary Takeaways

• Lisa’s debt is the result of lifestyle inflation, parental guilt, and enabling adult children post-divorce.
• Despite a strong income, her expenses (especially rent) are out of control.
• Dave and George urge a radical realignment: cheaper housing, children’s independence, and no investment until debt is eliminated.
• Using the debt snowball and tight budgeting, Lisa could achieve debt freedom before retirement age.
• The hosts offer relentless honesty and supportive encouragement, framing financial sacrifice as the path to true freedom—for Lisa and her kids.