In Over $200,000 Of Debt and Don't Know Where To Start

Summary

Podcast Summary: The Ramsey Show Highlights

Episode: In Over $200,000 Of Debt and Don't Know Where To Start
Date: August 23, 2025
Host: Dave Ramsey
Guest: Olivia (caller)
Co-Host: Jade Warshaw
Podcast Description: In this episode, Dave Ramsey and Jade Warshaw guide Olivia, who with her husband is facing over $200,000 in student loan debt, a growing family, and big career goals. They break down strategies for tackling large debts, increasing household income, and making tough financial choices about education, cars, and starting a family.

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Main Theme

This episode centers on helping Olivia and her husband prioritize financial decisions as they juggle heavy student loan debt, high credit card balances, and life milestones (saving for a family and replacing an old car), along with her husband’s desire to pursue further education for higher earnings.

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Key Discussion Points & Insights

1. Olivia's Situation & Financial Questions

• Current Financial Picture:

  • Husband just finished BSN (Bachelor of Science in Nursing).
  • Gross income expected: $88,000–$100,000/year (with extra shifts).
  • $10,000 sign-on bonus paid in installments over first year.
  • $200,000 in total student loans (split evenly between both spouses).
  • $4,300 in credit card debt at a 25% interest rate.
  • Olivia works part-time as a nanny, earning ~$900/month.

• Upcoming Needs & Goals:

  • Car needs replacing soon (currently driving a 2007 Toyota).
  • Trying for a baby; had a recent miscarriage.
  • Husband wants to go back to school for a doctorate in nurse anesthesia (cost: $125,000; programs where you can’t work in years 2 and 3, but could get costs covered via military or rural scholarship).

• Olivia’s Main Questions:

  • How to prioritize paying off debt, saving for car/baby, and further education?
  • Should they start saving now for graduate school, or pay off debt first?

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2. Professional & Personal Details

• Schooling & Licensure Background:
  • Olivia’s degree: graduate degree in art therapy (art therapist), but not licensed in her state (Oklahoma) due to out-of-state education and additional licensing hurdles.
  • Could work unlicensed as an art therapist in some settings, but not fully credentialed.

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3. Expert Guidance from Dave and Jade

Income Strategies & Immediate Priorities

• Increase Household Income:

  • Both Dave and Jade urge Olivia to pursue more substantial/full-time work immediately to maximize their "dink" (Dual Income, No Kids) phase.
  • “If I'm you, I'm applying for jobs and I'm going to be a receptionist at a dental [office] . . . you're going to go and . . . make it a goal to make $50,000 a year. You need to go do something, Oliv, because you guys have over $200,000 in debts...” – Dave Ramsey [04:06]

• Husband Should Work Extra Shifts:

  • Encouraged to maximize income through overtime.

Debt Snowball & Lifestyle Recommendations

• Target High-Interest Debt First:

  • Pay off $4,300 credit card debt ASAP (25% interest).

• Student Loan Debt:

  • “I want all of this debt paid off before you guys get a second degree. . . . you can start making the shovel bigger now.” – Dave Ramsey [04:49]

• Delay Additional Schooling:

  • Do NOT pursue further degrees until consumer debt—especially the student loans—is paid off.
  • Prioritize working and living lean now to pay off debt ahead of new education pursuits.

Saving for Milestones

• Car:

  • Start a sinking fund for a modest used car replacement ($10,000 target), contributing $500–$600/month.
  • Don’t finance another vehicle.

• Baby:

  • While trying to conceive, remain dual-income. Once pregnant, pause extra debt payments and pile up cash (“stork mode”).
  • “When you get pregnant, … pause everything. You guys save up cash. When that happens, we call it stork mode and pile up a big part of cash.” – Dave Ramsey [04:49]

Timeline & Aggressive Goal-Setting

• Make “Crazy” Goals:

  • Dave and Jade set an aggressive but achievable timeline of 2.5–3 years to pay off $200,000 if both spouses increase earnings.
  • “Make some crazy goals, Olivia. Crazy goals. And then in two and a half years . . . you could do this.” – Dave Ramsey [06:12]
  • With $150,000 combined annual income and a $75,000 living budget, the math works out for rapid payoff.

• Location Advantage:

  • Living in Tulsa, Oklahoma, where median incomes are around $75,000, stretches their dollars further.

On Potential Pregnancy & Working

• Stay in the workforce until pregnancy.
• “You can still work for the eight of the nine months that you’re pregnant. So, you know, there’s a lot that can take place in nine months, money-wise, with you at the full earnings.” – Jade Warshaw [06:27]
• Legal and ethical considerations discussed about disclosing pregnancy status to employers (“you don’t have to say it”—Jade Warshaw [07:22]).

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Notable Quotes & Memorable Moments

• On Prioritizing Earning:
  “You need to go do something, Oliv, because you guys have over $200,000 in debts and have a dream of other big things, which is amazing. That's gonna cost money. So we need money coming in.” – Dave Ramsey [04:06]

• On Large Debt Payoff:
  “I want all of this debt paid off before you guys get a second degree . . . You can start making the shovel bigger now.” – Dave Ramsey [04:49]

• On Setting Bold Goals:
  “Make some crazy goals, Olivia. Crazy goals. And then in two and a half years . . . you could do this.” – Dave Ramsey [06:12]

• On Working While Trying for Family:
  “You can still work for the eight of the nine months that you’re pregnant. So, you know, there’s a lot that can take place in nine months, money-wise, with you at the full earnings.” – Jade Warshaw [06:27]

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Timestamps for Key Segments

• Olivia shares her situation & financial breakdown – [00:09–02:01]
• Discussion about Olivia’s degree and career limitations – [02:18–03:46]
• Dave’s immediate advice: maximizing income, listing priorities – [03:46–05:48]
• Aggressive debt payoff timeline & income math breakdown – [05:49–07:12]
• Advice on working through pregnancy and legal considerations – [07:11–07:44]

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Conclusion

Dave Ramsey and Jade Warshaw give Olivia and her husband a clear, aggressive action plan: attack high-interest and student loan debt with increased earnings, delay further education until debt-free, plan and save intentionally for both baby and car needs, and maximize their current earning ability. They emphasize boldness and taking full advantage of the current dual-income window to set up a stable, prosperous future.

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For listeners facing complex, multi-layered debt and life questions, this episode provides actionable advice, tough-love encouragement, and a clear set of priorities for getting financially unstuck.

Transcript

[Dave Ramsey]

Brought to you by Y Refi. Refinance your defaulted private student loans [e-mail].

[Olivia]

Ramsey My husband just finished BSN school in May. We didn't take out any additional debt for him to go to nursing school. Once he finishes orientation in December, his estimated gross income will be about 88,000 with the opportunity to make 100,000 if he picks up an extra shift every pay period, which would net us about like 70,000 after tithe and taxes. Cool. We'll get a $10,000 sign on bonus that comes in four installments over his first year of employment. He would like to go back to school in two years for a doctorate in nurse anesthesia, which is a three year program. It would increase his earning potential to 250,000. The cost of tuition is about 125,000, which you could get covered by going into the military or getting accepted into a rural medicine scholarship program. However, you're not allowed to work in years two and three of the program. We currently have 200,000 in student loan debt with varied interest rate. We have 4,300 in credit card debt with a 25% interest rate. We've been married for three and a half years. We're trying to start a family that's been trying for about 11 months with one miscarriage at the seven month mark. And we have a 2007 Toyota which has like one to two years left of life in it. We're wondering what to put our money towards first between saving up for baby, the car needing a new 2S car and the debt and then once we pay off the car and save up for. Once we save up for a new car, save up for the baby and pay off that credit card debt. Should we start saving for him to go to school since it would increase the size of our shovel significantly to 250k. Or should we pay off our student loan debt before sending him to school?

[Dave Ramsey]

What's the 200 student loan debt? Whose was that?

[Olivia]

Half of it's my student loan debt and half of it is his.

[Dave Ramsey]

Okay. What do you do.

[Olivia]

Currently? I work part time as a nanny. I make about $900 a month, just a little extra on the side.

[Jade]

What was the degree for?

[Olivia]

I did a grad degree in art therapy, but I did it out of state so I'm not, I wasn't able to get that degree. Jump through a bunch of what, hoops?

[Dave Ramsey]

Yeah. Well, what is that? Well, like what kind of job is in art therapy?

[Olivia]

So I would be like a licensed therapist. I would be A licensed therapist?

[Dave Ramsey]

Are you a license? Did you get your license? Did you get the license with the $100,000 tuition?

[Olivia]

No. So you can get your license in some states, but the state that I'm currently in doesn't let me get licensed right away without having to pay, like, additional, like a couple thousand dollars for additional classes here in my state and having to, like, do a bunch of testing and go through. Jump through a bunch of hoops.

[Jade]

What does a person who does finally get that certification? What kind of money do they earn?

[Olivia]

I'm thinking. I can't remember.

[Jade]

I think I'm just trying to decide, is it worth paying the couple of thousand for you to get your art therapy license so you can actually work in your field?

[Olivia]

Yeah, I could also, like, work as an un, like, not through a license. I could work in a community center and say, like, I can do therapeutic art with your clients. I just can't be, like, a licensed therapist if I could do that.

[Dave Ramsey]

Okay.

[Olivia]

Which. That would be determined by the company.

[Dave Ramsey]

Okay.

[Olivia]

So getting my license here in Oklahoma, it would take me, like five years to get there. And if he goes to nurse and Nexus.

[Dave Ramsey]

Okay, so here's what I would do, Olivia. He's making 80, going to be making 100, because I would definitely take that shift. You guys are in debt. If I'm you, I'm applying for jobs and I'm going to be a receptionist at a dental, you know, place.

[Olivia]

I don't know.

[Dave Ramsey]

I'm just like, you're going to go and. And make it a goal to make $50,000 a year. You need to go do something, Oliv, because you guys have over $200,000 in debts and have a dream of other big things, which is amazing. That's gonna cost money. So we need money coming in. So he's gonna be working an extra shift. Can he pick up an extra extra shift? I mean, nursing is, like, an amazing field to be in. Yes. Because you guys are dual income, no kids, you're in the dink phase. And so take advantage of it, Olivia. Start working your butts off. Because, yes, I want all of this debt paid off before you guys get a second degree. Okay. Even though it's gonna cause a shovel to be bigger, the shovel will be bigger. You know, when you guys start working extra and you work in two jobs, Right. I'm like, you can start making the shovel bigger now. And so that's what I would focus on. Save up 10 grand for a crappy car when the Honda goes out in two years, create a Sinking fund where you put, you know, 500, $600 a for a sinking fund. And then on the side. Yeah. Let's be trying for kids. And I'm gonna say, when you get pregnant, that's my prayer for you. Pause everything. You guys save up cash. When that happens, we call it stork mode and pile up a big part of cash. You guys still working? Working, working, working, working, working, working. Baby comes. All right, Everyone good? Okay. Whatever's left in the savings we're gonna throw at the debt. But my goal for you guys would be, gosh, I mean, if y' all could make, I mean, try to get this paid off. I don't know. Jade, is this crazy to say two and a half years, three years?

[Olivia]

I think so.

[Jade]

Because if she starts making 50, that means you're making 150. But if you live on a half, where are you guys? Yeah. You're in Tulsa, Oklahoma.

[Olivia]

Yeah.

[Jade]

You live on 75, 000. That's average income, you know, median income. So if you live on that, and so that means you're putting the other 75 towards your debt, you know, I get it. Minus taxes. I think that you guys could do this. No, I don't think you're crazy.

[Dave Ramsey]

Two and a half years.

[Jade]

Yeah, two and a half years.

[Dave Ramsey]

Make some crazy goals, Olivia. Crazy goals. And then in two and a half years, then in two and a half.

[Olivia]

Years to get a job, like a full time job while we're trying for baby. I'm not going to be there. Yes.

[Dave Ramsey]

Yeah.

[Jade]

Because you don't know what the future holds. And you can still work for the eight of the nine months that you're pregnant. So, you know, there's. There's a lot that can take place in nine months, money wise, with you at the full earnings.

[Dave Ramsey]

You're currently expecting, are you?

[Olivia]

No.

[Dave Ramsey]

No. Okay.

[Olivia]

Yeah.

[Dave Ramsey]

Yeah. So I would. Now, if you were expecting, you would have to, you know, I would be forthcoming with an employer probably. You know, in that case, just as good courtesy.

[Olivia]

Yeah. Okay. I don't know. I don't know. Whatever.

[Dave Ramsey]

It depends. It depends on who you work to say that's fair. All that to say. All that to say you can work and try and have the baby and that's great. And then you got nine months of work. We're both moms. We've both expected it. Yeah.

[Jade]

Listen here at Ramsay, because I know what kind of company it is. I'm being forthcoming.

[Dave Ramsey]

Fair.

[Jade]

But every.

[Dave Ramsey]

That's right. I wasn't. That's true. That is true. Jade. That is true. And you don't legally have to.

[Jade]

Yeah, you don't have to say it.

[Dave Ramsey]

Yeah. So anyways. But you're not pregnant right now, so be applying for jobs and go work your tails off. Olivia. Get this paid off. And then continue to live on nothing. On Nothing. To save up125 and take them through the program. And if you guys are in your early 30s doing that by the time all this is said and done, it's great.

[Olivia]

It's great.

[Dave Ramsey]

You're living a great life. Why? Refi Refinances Delinquent private student loans for struggling borrowers. Learn more at Y r e f y.com Ramsey.