I'm In $147,000 of Debt And Only Make $1,500 A Month

Summary

Podcast Summary: The Ramsey Show Highlights

Episode: I'm In $147,000 of Debt And Only Make $1,500 A Month
Date: December 12, 2025
Host: Ramsey Network (Rachel Cruze and Jade Warshaw featured)
Caller: Miguel

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Overview

In this episode, Miguel, a first-year business owner in the printing industry, calls in overwhelmed by $147,000 in total debt and an income of just $1,500 per month from his business. The hosts, Rachel Cruze and Jade Warshaw, offer practical, empathetic guidance on whether Miguel should sell his business, keep pushing forward, or shift strategies to tackle his debt and improve his financial future.

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Key Discussion Points & Insights

1. Miguel’s Situation: Debt, Business, and Income

• Miguel is carrying $147,000 in debt (credit cards, student loans, car payment).
• Owns a printing (merchandise) business generating $1,500/month — his sole income.
• Works 50-60 hours weekly; lives alone; rent is $850/month, car payment $450.
• Struggles to cover basic expenses and lacks health insurance.

Miguel: “Just making it happen, honestly.” [02:09]

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2. Should Miguel Sell the Business?

• Option to Sell: Could liquidate equipment for ~$30,000.
• Business is only a year old, inconsistent income, feels unstable.

Rachel: “I don’t know that I would sell it, but I would not have this being my full time job right now because of what it's generating.” [01:49]

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3. Is the Business Viable as a Side Hustle?

• Hosts encourage keeping the business, but only part-time.
• Urge Miguel to seek full-time employment for steady income.
• Only $8,000 of the debt is tied to the business—rest is personal.

Jade: “The fact that you’ve started generating money so quickly from it, I think is good... but worth it to try to play that out a little longer. But I like what Rachel said on putting a timeline on it.” [06:41]

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4. Creating an Exit or Growth Timeline

• Suggest dedicating the next 6-9 months to grow the business while working a regular job.
• If the business doesn’t pick up, sell equipment and move on.

Rachel: “A part of me would give, give it another six months while doing something else... don’t go into any more debt in it... Can I pick up any more steam... If you can’t, then sure, sell the equipment...” [05:32]

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5. Immediate Next Steps & Resources

• Cut all unnecessary expenses; Miguel’s spending is already bare-bones.
• Boost income urgently — any job, even waiting tables, is better than current status.
• Hosts offer a free career-assessment book by Ken Coleman.

Jade: “You don’t have expenses to cut—your bare bones as it is. So the next line of defense is getting more income. That’s how it works.” [07:21]
Rachel: “Ken Coleman has a book... Find the work you’re wired to do... that you can just kind of brainstorm and think.” [07:40]

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Notable Quotes & Memorable Moments

• Rachel Cruze: “You’re not on a living wage right now...” [02:41]
• Miguel: “I technically just hopped out of school and then saved money and then started this business.” [03:07]
• Rachel Cruze: “We just see this, Jade and I both, I think, as a great side hustle for right now while you go get a full-time job somewhere else.” [05:32]

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Important Timestamps

• 00:29 — Miguel asks if he should sell his business to attack his debt.
• 01:31 — Reveals $1,500/month income, working full time.
• 02:09 — Explains how he survives on low income.
• 03:07 — Miguel’s background: straight from school to business.
• 04:19 — Only $8k of debt is tied to the business.
• 05:32 — Rachel urges a realistic timeline before quitting.
• 06:41 — Jade supports trying to grow the business as a side hustle.
• 07:21 — Hosts agree: extra income, not further expense cuts, is the solution.

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Conclusion

Rachel and Jade urge Miguel to prioritize finding a stable, higher-paying job, treating the business as a side gig rather than his primary income until it can show true growth. They stress the need for timeline-bound decisions and maintaining hope, while also being brutally realistic about income needs. The conversation is practical, supportive, and frank in its guidance for anyone facing similar entrepreneurial or debt-related dilemmas.

Transcript

[A]

Brought to you by the EveryDollar app. Start budgeting for free today. So I have a business and I'm contemplating on what I should do next because I'm also 147,000 in debt, and that's including credit cards, student loans, and car payment.

[B]

Okay.

[A]

So I want to know if I should sell a business, what I think I get value for, and then start fresh and use that lump sum of money to attack, like, your debt.

[C]

What kind of business are you in?

[A]

It's a printing business. So merchandise.

[C]

What would cause you. What would cause you to sell the business versus using profit from the business to pay down the debt?

[A]

I think it's just because I'll collect a lump sum of money and like, the business right now is kind of, you know, fluctuating. It's up and down, and I'm also alone in it. So it's a lot of my time where I feel like if I could change the.

[B]

If you didn't have debt, Miguel, would you stay in this business or would you still want out?

[A]

Yeah. You would stay out, Potentially stay in the business? Yeah.

[B]

Okay. Yeah. Because I look at this as, I mean, because, I mean, well, how much would you sell it for? How much could you get out of it minus all of your liabilities and everything?

[A]

About 30 grand.

[B]

How much are you making off of it every year? How much are you bringing home?

[A]

So this is actually like my first year in it, so I know at the end of the year, but roughly after everything, about 1500 bucks a month.

[C]

1500Amonth. Is this what you do full time or is this kind of like a side business?

[A]

It's full time.

[C]

Well, I don't know that I would sell it, but I would not have this being my full time job right now because of what it's generating. It feels like.

[B]

How are you guys living? Is your wife work?

[A]

No, I'm single.

[B]

You're single. How are you living off of $1,500 a month?

[A]

Just making it happen, honestly.

[C]

But what's your rent though? Like real numbers?

[A]

I paid a studio. It's about 850.

[C]

What else? Car.

[A]

Car, yeah. 450 and then.

[C]

450. Okay.

[A]

Yeah.

[C]

And then utilities, I guess that's put in with the rent and then just. You're scrapping on food. No. Insurance?

[A]

Yeah.

[C]

Do you have insurance? Health insurance?

[A]

Like, caught my cards. No, no, no, no. Health insurance?

[C]

Yeah. So you're not on a. You're not on a living wage right now. And so while I think it's cool to Have a printing business. This, it eats like a part time side hustle when we look at the, the income that it's bringing. So I would be looking, as you're working this, I'd be looking for a full time job. What are your, what are your skills? What have you done in the past before you did this business?

[A]

I technically just hopped out of school and then saved money and then started this business.

[B]

Yeah. How many hours a week?

[A]

I've never really.

[B]

How many hours a week are you putting into this?

[A]

A lot. It's probably like 50, 60.

[B]

Yeah, yeah, yeah. Okay. So if you did, do you have a buyer out there? Like when you say sell the business, I mean, what's that? Have you, have you looked into that option? Is there a realistic option?

[A]

Yeah, I have, yeah, I have a few options. And that's when I mean the business, I just mean like the equipment and everything.

[C]

Yeah.

[B]

Oh, I hear what you're saying. Not necessarily.

[C]

Yeah, okay. Yes. That's where the debt is. Right. What did you invest in to do this business? Like what equipment do you have?

[A]

Oh, I have like DTG printer, heat presses and a couple other machines, you know, tops and stuff like that.

[C]

I, I'll, I'll tell you, you've, you haven't been doing the business long, so I don't want to say that there's no future in it. Like, but how much of this debt is business debt? Like how much of it came from the business?

[A]

About eight grand.

[C]

Okay, that's not bad. Of the 147, that's only eight. I, I'm inclined for you to continue. What I want to know is what's the minimal amount of hours that you can put in it to keep the 1500 so that you can search for something else? Is there any feasible way to do that?

[A]

Yeah, it's possible. That's, that's also another plan I've been thinking of because I have a location in a premier like downtown area. So I was thinking of just getting rid of the space, trying to find something smaller and then kind of just work on based off orders I get.

[B]

Yeah.

[A]

Do you much like being in there?

[B]

Do you have consistent clients that you're reprinting for or is it a one and done?

[A]

A little bit of both. But I do have, I've picked up a few clients that are picking up, you know, monthly.

[C]

Yeah.

[B]

And as most of the hours. When you're saying I'm working 50 hours on this, is it most of it in the actual physical printing that you're having to do or is it trying to find new clients and marketing and thinking of creative ways to get your name out there?

[A]

A little bit of both. But mainly the printing process. Like printing and being in there.

[C]

Okay. Okay.

[B]

Yeah. So I'm with Jade. I mean, Miguel, if you have all the equipment and it is bringing in 1500, obviously that's not, that's not sustainable long term for you to live like that. Obviously you know that, or you probably wouldn't be calling the show. So it's November. A part of me would give, give it another six months while doing something else. Like you need to go wait tables. I mean, you could make more money doing that. I mean, something. Right. You need to go be doing something. And if you can keep this on the side and actually get some clientele, you could, I don't know. And if you, yes. Grow it and then maybe that be your full time or you just have these clients and you start making 3,000amonth while also still working to get out of all the credit, all the debt that you talked about at the beginning of this call. So I almost would be tempted just to hold tight for like maybe six months. Give yourself a time period though to say, okay, don't go into any more debt in it, but to say, can I pick up any more steam in this business in the next six to nine months? And if you can't, then sure, sell the equipment and then that will give you some money. But we just see this, Jade and I both, I think, as a great side hustle for right now while you go get a full time job somewhere else.

[C]

The fact that you've started generating money so quickly from it, I think is good. And you have made an investment in some equipment and it feels like, yeah, worth it to try to play that out a little longer. But I like what Rachel said on putting a timeline on it.

[B]

So I would do that. Miguel, or just throwing this out there, kind of the other side of the coin is if you hate it and you're not enjoying it, but you, I think you are liking it in some degree because you said you'd still stay in if you didn't have debt is, is to, yeah. Find something just full time, sell the stuff and you start a whole new life where you're not feeling like you have to carry a business. Right. Because it does. It's a lot of strain and mental calories to do that. So I don't know, kind of two different options, but either way you gotta get a second job. Either way.

[C]

Agree? Agree. Rich? Yeah. I hope that helps. I know that sometimes when we just tell people, cut your expenses and get a job. I know it feels tough, but truly, that is. That is the remedy. You don't have expenses to cut your bare bones as it is. So the next line of defense is getting more income. That's how it works.

[B]

Yeah. And Ken Coleman has a book. Find the book, find the work you're wired to do, and we'll send that to you. Cause there's a great. It's not a quiz assessment at the back assessment to kind of figure out. Maybe this will help kind of narrow some possible career paths for you, too, Miguel, that you can just kind of brainstorm and think. So holding the line, Christian's gonna pick up.

[A]

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