The Ramsey Show Highlights — Episode Summary

Episode Title: I'm Broke And Overextended On My Home
Air Date: October 4, 2025
Hosts: Dave Ramsey, Ken Coleman
Guest: Lacey

Overview

In this episode of The Ramsey Show Highlights, listener Lacey calls in distressed about her precarious financial situation after purchasing a home she now cannot afford. The hosts, Dave Ramsey and Ken Coleman, provide candid, tough-love guidance on essential steps Lacey must take to regain financial control, including selling the house, boosting her income, and making tough personal decisions about her living arrangements.

Key Discussion Points & Insights

Lacey's Financial Situation (00:06 – 03:15)

• Lacey shares she bought a home for $400,000 at the start of 2024, but with a high interest rate, the $3,130 monthly mortgage payment is sinking her finances.
• Despite a “good salary” (net $5,600/month), she’s living paycheck to paycheck and unable to save, with “debt…just there, hanging around, not going anywhere.”
  • Lacey: “I'm just trying to get advice. I'm kind of stuck financially.” (00:06)
• Ken calculates: After the mortgage, about $2,000/month remains to cover all other needs.

Debt Breakdown (02:02 – 02:56)

• Lacey’s total monthly debt (besides the house): Over $1,000.
  • Car note: $400 (remaining $19,000 after a $15,000 down payment)
  • Credit Cards: about $20,000
  • Student Loan: $100,000 (in forbearance; degree in nursing)
• Despite her profession, rising debts and high house payments have led to using credit cards for basic expenses.

Relationship & Household Dynamics (03:27 – 04:15)

• Lacey reveals she’s single but recently let her boyfriend move in.
  • His income is “substantially less,” and he contributes only 25–30% of expenses.
  • All debts and home liabilities are solely in her name.
  • Dave Ramsey: “If he's the roommate...he needs to be doing more than that, Rachel. Am I right?” (04:15)

Hosts’ Recommendations (04:30 – 07:34)

• Ken: Immediate need is to sell the house and transition to renting; her finances can’t support homeownership right now.
  • Ken: “You gotta get out of this house. Yeah, I would put this house up for sale.” (04:30)
• Dave: Even if the home sells at a loss, the priority is to eliminate the crushing mortgage.
  • Dave Ramsey: “That's the play. Take whatever lumps you're gonna take on this. You gotta remove this.” (04:37)
• Income: With a nursing degree, Lacey should maximize earnings—overtime, second jobs, or travel nursing. Past callers have eradicated massive debt by temporarily “working like a maniac.”
  • Dave Ramsey: “You have got to be working like a crazy woman right now to get the rest of this debt [paid off]...You're using a very valuable skill to make as much money as possible.” (05:31)
• On the boyfriend: Both hosts agree he’s not contributing sufficiently and suggest a clean break for Lacey’s financial and personal well-being.
  • Dave Ramsey: “Kick him to the curb. Why do we...You have no life right now. You're working so hard. We don't have time for a boyfriend. He's a financial deadbeat...He's freeloading off of you.” (07:04)
  • Lacey (agreement): “It may not be long term because it's not really that beneficial to me.” (06:56)
• Rent should be significantly cheaper (aim for around $1,800/month); freeing up cash flow is critical.

Immediate Action Plan (07:36 – 08:34)

• Get a Ramsey-recommended real estate agent (ELP) to sell the house.
• Maintain payments on essential items: food, shelter, utilities, and transportation.
• Pursue extra nursing work or side jobs to boost income.
• Prepare for a “2, 3, 4 year journey,” but hosts express confidence in her path if she commits.
  • Ken: “You have a good 2, 3, 4 year journey ahead of you. But I think it's bright and I think your future is bright and you can do this. It's just some hard, big decisions you have to make.” (08:19)

Notable Quotes & Memorable Moments

• Ken Coleman: “You can’t afford this house. I mean, that leaves you…$2,000-ish per month. How much are your debt payments on everything else?” (01:13)
• Lacey: “The cycle is vicious…I paid the payments, and then, you know, I’m broke within a week or less after I’m paid.” (03:15)
• Dave Ramsey: “Any dude worth his weight in salt would have said, ‘I’m going to pay half, babe.’…He’s freeloading off you to the tune of 25%.” (07:04)
• Ken Coleman: “This house is killing you…sell it, hopefully as soon as possible.” (07:36)
• Dave Ramsey (closing): “Sum it up. Two big decisions. We’re kicking the boyfriend out and then we’re listing the house. Very simple. Life’s going to get better immediately.” (08:34)

Timestamps for Important Segments

• [00:06] Lacey shares her situation
• [01:13] Affordability breakdown and debt overview
• [03:27] Relationship details change context
• [04:30] Hosts recommend selling the house
• [05:31] Importance of maximizing nursing income
• [07:04] Strong advice about the boyfriend
• [07:36] How to sell and practical next steps
• [08:34] Final summary and motivational wrap-up

Tone & Final Thoughts

The episode carries a frank but compassionate tone, emphasizing financial realism and urgent action. Dave Ramsey and Ken Coleman balance tough-love critiques (“He’s a financial deadbeat…kick him to the curb”) with encouragement (“Your future is bright and you can do this”). The message is clear: for listeners facing overwhelming housing and debt burdens, immediate decisive steps—even hard ones—can restore hope and stability.