I'm Broke And Overextended On My Home

Summary

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

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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.

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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)

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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)

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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

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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.

Transcript

[Dave Ramsey]

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[Lacey]

I'm just trying to get advice. I'm kind of stuck financially. I purchased my home about 400,000 beginning of 2024. With the interest rate, it's not really affordable. I thought that I could refinance, but it's really. I make a good salary, but I'm kind of living paycheck to paycheck, unable to save the debt that I have. It's kind of just there, hanging around, not going anywhere. And I just want to get out of this house or I don't really have a solution to remedy this poor financial decision that I made for myself.

[Ken]

Okay, Lacey, how much is your house payment every month?

[Lacey]

3130.

[Ken]

100. And how much are you bringing home.

[Lacey]

After taxes? I bring home about, let's see, 5,600.

[Ken]

Oh my gosh, 100. Yeah. Yeah. You can't afford this house. I mean how. Yeah, I mean that leaves you. Yeah, 2,000 ish dollars per month. How much are your debt payments on everything else?

[Dave Ramsey]

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[Lacey]

Of time, but now with everydollar, I can do a budget in five minutes.

[Dave Ramsey]

And tracking purchases is just as simple.

[Lacey]

It's so freeing to know exactly where you're money is going.

[Dave Ramsey]

It just takes that stress out of.

[Ken]

The day to day life.

[Dave Ramsey]

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[Ken]

How much are your debt payments on everything else?

[Lacey]

Usually over a thousand. My car Note is about 400 because I put down about 15,000 on my car, so I owe about 19. And then slowly, you know, throughout the last couple years I used credit cards here and there. But when I initially purchased the home, I didn't have any credit card debt. I did do an FHA mortgage, so I do have pmi. But yeah, it was definitely a poor financial. I just, I wanted a newer home and yeah, wanted a private office space and I don't know, you know, I've looked at foreclosure, short sale, but the homes kind of, you know, a lot hasn't been taken off of, you know, besides my down payment because of how much is going towards interest. So you know, it's still about 365 for sure.

[Ken]

Well, and I'm just wondering, even with your car payment and other debt, I mean you probably only have $1,000 to do everything Lacey, of to Eat. And to pay your bills. I mean, electricity and all of it. Are you going into credit card debt every month to keep just your basics afloat?

[Lacey]

Yeah, basically. And then I. The cycle is vicious because, you know, I paid the payments, and then, you know, I'm broke, you know, within a week or less after I'm paid.

[Dave Ramsey]

I just want to ask the obvious. Are you single?

[Lacey]

I am single. I am.

[Dave Ramsey]

Why did you pause? Is there. Is there something else we don't know? Yeah, there's something there. What. What were you pausing about?

[Lacey]

Well, I do have my boyfriend. I let him move in with me, but I don't know how long term that's going to be, and I don't really rely upon that. And his income is substantially less, so I don't really count.

[Dave Ramsey]

Is he. Is he paying anything?

[Lacey]

He does pay, you know, about 25 to 30%, but it's not enough to give me reprieve or to really make a dent in the, you know, what's on my plate. Everything's in my name and.

[Dave Ramsey]

No, no, I get that. And I'm sure we would never suggest otherwise. I just. I don't know why I decided to ask that. I had an inkling. But the point is, is he needs to be. If he's the roommate, I don't care what your relationship status is. He needs to be doing more than that, Rachel. Am I right?

[Ken]

Yeah. I mean, 45% in the short term, but I. But, I mean, you gotta get out of this house. Yeah, I would put this house up for sale.

[Dave Ramsey]

Yeah, that's the. That's the play. Take whatever lumps you're gonna take on this. You gotta remove this.

[Ken]

Yeah, and I would just go rent. Lacey, I would not be a homeowner. Your finances are all over the place. You have. So you have a $19,000 car loan. What's the. What credit card debt do you have? How much?

[Lacey]

About 20,000 total. I added it up.

[Ken]

Okay. What other debt is there?

[Lacey]

Well, there's student loan debt. How much is that forbearance? It's about 100,000 total.

[Ken]

What, you get your degree in.

[Lacey]

Nursing?

[Ken]

Is that what you do now?

[Lacey]

Yes.

[Ken]

Okay.

[Dave Ramsey]

Why aren't you doing overtime?

[Lacey]

Yeah, well, I. I work for private sector right now, but I do have. I'm about to start a second job to do bedside nursing.

[Dave Ramsey]

Great. But by the way, that's what you've got to do. I just want to throw that in real quick. Rachel, I know interrupted, but with your nursing skill, you have got to be working like a crazy Woman right now to get the rest of this debt, forget the house part, but we've got to clean up the house and then the rest of the stuff. But you've got to. There's no life for you. You are using a very valuable skill to be making as much money as possible. And by the way, we've had. I remember a debt free screen, Rachel. It was probably over a year ago, and it was a travel nurse and she paid off hundreds of thousands of dollars in debt and she just worked like an absolute maniac. So I just want to give you that. Lacy. Sorry, Rachel.

[Ken]

I know you're so long.

[Dave Ramsey]

What's that for?

[Lacey]

How long?

[Dave Ramsey]

She did it for about two and a half years. It was a short amount of time.

[Ken]

Yeah, I mean, I would be looking into some creative solutions just to get your head above water. Lacey, if you. Do you know how much the house is worth right now? You.

[Lacey]

That's the thing. It's worth about 385and I owe about 1,370on it because, like, much hasn't gone away. So I think that I'm gonna come out of negative.

[Ken]

Yeah, it may be a little bit negative, but I would rather do that and free up $3,100 a month. Month. Now, you'll have to pay rent somewhere, but even if you can find a place for 1800. Right. I mean, like, it just. This starts to free up.

[Dave Ramsey]

Well, if you're shacking up with a boyfriend, he needs to pay half. Am I wrong about that?

[Ken]

No. No, you're not.

[Dave Ramsey]

Okay. I just wanted to make sure.

[Lacey]

It may not be long term because it's not really that beneficial to me.

[Ken]

Yeah.

[Dave Ramsey]

What? He's not.

[Lacey]

Yeah.

[Dave Ramsey]

Yeah. Well, kick him to the curb. Why do we. You're. You have no life right now. You're working so hard. We don't have time for a boyfriend. Yeah, I'd kick him to the curb. He's a. Listen, he's a financial deadbeat anyway. I know. I mean, come on. Let's be honest. Any dude worth his weight in salt would have said, I'm going to pay half, babe. Right. But no, he's. He's. He's freeloading off of you to the tune of 25%.

[Ken]

Yeah.

[Dave Ramsey]

Did you say major turn off?

[Ken]

Yeah.

[Lacey]

Yes.

[Dave Ramsey]

I love that. That's great.

[Ken]

Yeah. So, Lacy, that. Yeah. This house is killing you. Okay? And I know you know that, but that's exactly what I would. I would sell it, hopefully as soon as possible. I mean, obviously you don't want to be. You don't be too urgent because you don't want to like sell low. But get a great real estate agent. If you go to ramseysolutions.com and check out our ELPs, we have real estate agents all across the country. And get someone who is good at this. This is what they do. They sell houses. They sell a lot of houses. And you may take a small loss, but that is going to be so worth it because it's going to free up your income and, and then you have to start attacking this debt. But in the meantime, Lacey, make sure food, shelter, utilities, transportation is current. Don't get behind on the house. Make sure those things are current. And then you got to step up with the income and you got to pay this debt off. Yeah, you have a good 2, 3, 4 year journey ahead of you. But, but, 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 with the house and Ken's advice, the boyfriend.

[Dave Ramsey]

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. Create your free every dollar budget today. The simplest way to budget for your life.