The Ramsey Show Highlights: "I'm Broke And Don't Know What To Do"

Release Date: April 26, 2025
Host: Ramsey Network
Guests: Dave Ramsey, Jade Warshaw

Introduction

In the episode titled "I'm Broke And Don't Know What To Do," Sarah, a 56-year-old grandmother, reaches out to The Ramsey Show for financial guidance. Facing monumental challenges while raising four special needs grandchildren, Sarah shares her journey from financial stability to her current state of hardship. Hosts Dave Ramsey and Jade Warshaw offer compassionate advice and actionable steps to help Sarah regain control of her finances.

Sarah's Background and Financial Downfall

Sarah begins by explaining her situation:
[00:15] Sarah: "I'm 56 years old and I have four grandchildren that I am now raising."

She recounts her life before taking on the responsibility of her grandchildren:
[00:20] Sarah: "I was in a perfectly good situation before I got the kids. I had, you know, money in the bank. I was working for an airline and I was doing really well."

However, circumstances forced her to make significant sacrifices:
[00:37] Sarah: "Needless to say, I came back. And I had to spend everything I had."

Sarah faced personal loss and had to single-handedly support her grandchildren after her husband's passing:
[00:47] Sarah: "My husband passed away. So it was like it was only me, you know?"

Over the past five years, her financial situation deteriorated drastically:
[01:02] Sarah: "And now it's been five years and I am like broke. I don't know what to do."

Employment Challenges and Current Income

Previously employed as a travel agent, Sarah lost her job due to the demanding needs of her grandchildren:
[03:34] Sarah: "Yes, that is the reason why I lost my job."

Her income plummeted from $6,500 to $4,300 monthly:
[02:57] Sarah: "I went from having around 4,300 in income down. I mean, from 6,500 having income down to 4,300."

Currently, Sarah relies on pet sitting to make ends meet, unable to commit to a regular 9-to-5 job:
[02:20] Sarah: "I am in Georgia now... and this is where I lost it. This is where I'm losing everything because I don't have enough."

Detailed Breakdown of Debts and Expenses

Sarah provides a comprehensive overview of her financial obligations:

1. Mortgage:

   • Monthly Payment: $1,748
   • Interest Rate: 6.25%
   • Current Home Value: $235,000
   • Amount Owed: $217,000
   • [04:06] Sarah: "Most of the money now since I had to get a mortgage, it goes to the mortgage."

2. Credit Card Debt:

   • Total Debt: Approximately $6,100
   • Monthly Payment: $385
   • [05:38] Sarah: "All of them together is around 6100. I pay 385amonth."

3. Furniture Bills (Rent-to-Own):

   • Total Cost: $5,229
   • Monthly Payment: $847
   • [06:01] Jade: "I was confused about that... Another year on it."
   • [06:56] Sarah: "Yes... it's 5,229 total."

4. Payday Loans:

   • Total Debt: $2,400
   • Monthly Payment: $1,320
   • [07:06] Sarah: "My stupid butt got some payday loans I'm gonna work on getting."

Sarah emphasizes that while Medicaid covers some medical expenses, the mortgage remains a significant financial burden:
[04:21] Sarah: "Most of the money now since I had to get a mortgage, it goes to the mortgage."

Expert Advice and Actionable Steps

Jade Warshaw and Dave Ramsey respond with empathy and strategic advice to help Sarah navigate her financial turmoil.

1. Prioritize High-Interest Debts:

   • Jade underscores the urgency of addressing payday loans to prevent further financial strain:
     [07:22] Jade: "Those payday loans, those will suck the life out of you. So I want those at the very, very top of the list."

2. Exit the Rent-to-Own Agreement:

   • Jade suggests finding alternative solutions to eliminate the burdensome furniture payments:
     [07:22] Jade: "I want those at the very, very top of the list... How much furniture does that include?"

3. Seek Community and Emotional Support:

   • Emphasizing the importance of a support network, Jade encourages Sarah to connect with a local church or community group:
     [07:34] Jade: "I want you to get plugged into a church or into some community because you can't do this alone."

4. Financial Coaching:

   • Dave offers to connect Sarah with a financial coach for personalized assistance:
     [08:08] Dave: "Set her up, Christian, with one of our financial coaches... There's a plan."

5. Transparency and Asking for Help:

   • Both hosts stress the importance of Sarah sharing her story to garner support and resources:
     [08:16] Jade: "And you've got to let people hear what's going on... So getting people around you is paramount to making this work."

6. Encouragement and Reassurance:

   • Dave provides motivational support, reinforcing that Sarah is not alone and that a path forward exists:
     [09:10] Dave: "Sarah, Help is on the way. Keep your chin up. There's a plan."

Conclusion and Next Steps

The episode concludes with a clear roadmap for Sarah to begin rebuilding her financial stability:

• Connect with a Financial Coach: Personalized guidance to create a sustainable financial plan.
• Engage with Community Support: Building a network through local churches or community groups for emotional and practical assistance.
• Address High-Interest Debts First: Tackle payday loans and rent-to-own agreements to reduce financial pressure.
• Explore Alternative Income Streams: Consider additional or alternative sources of income that accommodate the needs of her special needs grandchildren.

Sarah is reassured that with structured support and strategic financial planning, she can overcome her current challenges and work toward a more secure future for herself and her grandchildren.

Notable Quotes

• "I gave up everything to travel."
  Sarah [00:47]

• "Your chin up. There's a plan."
  Dave Ramsey [09:10]

• "You stepped up. You did what you did. No one's judging you, including us."
  Dave Ramsey [08:08]

• "You can't do this alone."
  Jade Warshaw [07:34]

This episode of The Ramsey Show Highlights serves as a beacon of hope for individuals facing similar financial hardships, emphasizing the importance of prioritization, community support, and professional guidance in overcoming debt and rebuilding financial health.