Podcast Summary: The Ramsey Show Highlights – "I've Been Paying On My Car For 8 Years (And Owe More Than It's Worth)"

Release Date: August 5, 2025
Host/Author: Ramsey Network

Introduction

In this episode of The Ramsey Show Highlights, the host from the Ramsey Network addresses a listener's predicament regarding an extended car loan. The discussion delves into the challenges of subprime lending, high-interest rates, and the repercussions of prolonged debt accumulation. The hosts provide actionable advice to navigate such financial setbacks.

Caller’s Situation

[00:06] Caller (B):
"I am calling because I have an issue that's going on with my car situation of the vehicle I purchased and it is still not cleared even after year number seven."

The caller explains that he has been paying off a 2016 Ford Fusion since 2017. Originally scheduled to be paid off by April 2023, it is now July 2025, and he still owes $17,494.31—a sum exceeding the car's worth.

[00:47] Caller (B):
"So I have a 16 Ford Fusion that I've been paying on since 2017. At this point, my loan was supposed to mature back in 2023 of April. We are now in 2025 on July. And I owe more than what the car is worth, and I need to figure out what I actually owe in terms of all these late fees and extensions that were taken out."

He reveals that the loan carries a high-interest rate of 18.95%, obtained from a subprime lender, which has significantly inflated his debt through accumulated late fees and extended payment terms.

[02:00] Caller (B):
"They did print all the payments and the fees so far. But I believe there is some missing because the information that I received from the company themselves, calling them numerous times to try to get information, I came up with numbers on my own with the printout that I've been asking for over three months, and I just finally got it."

Despite having documentation, the caller disputes the lender's total owed amount, suspecting discrepancies in the calculated fees and charges.

Hosts’ Discussion of Options

[03:01] Host A:
"So you're thinking that there's somewhere south of $10,000 owed, but something is owed. That's what you're thinking, right?"

The host assesses the situation, suggesting that the actual owed amount might be less than the stated $17,000, but acknowledges that some debt remains due to high-interest rates and additional fees.

[04:00] Host A:
"You have two options. Well, you've got three options, and one of them is not a good option. So you have two good options. One is continue the fight that you're doing... Or you got to hire a lawyer. That's your second option."

The hosts outline three potential paths:

1. Continue Negotiating with the Lender:
   Persist in dealing with the subprime lender to clarify and possibly reduce the owed amount. This involves confronting the lender's questionable business practices and striving to reach a mutually agreeable settlement.

2. Hire a Lawyer:
   Engage legal assistance to contest the debt, potentially suing the lender for the disputed amount. This route is advised if negotiations fail, though it may involve additional costs and complexities.

3. Surrender the Vehicle (Not Recommended):
   The third option is to return the car, which the hosts strongly discourage due to the adverse impact on credit scores and the likelihood of continued disputes over debt.

[05:56] Host A:
"Because when you do something stupid. Here's the thing. Doesn't mean you're stupid. It means you did something stupid."

The hosts empathize with the caller's frustration, emphasizing that financial mistakes are learning opportunities rather than reflections of one's intelligence. They stress the importance of avoiding repeated financial missteps.

Advice and Insights

[07:12] Host A:
"I've done dumb with zeros on the end. I've got a PhD in dumb. The trick is, my goal has always been, and it's worked real well for me, is don't do the same stupid thing again."

Drawing from personal experiences, the hosts advocate for learning from financial errors to foster better decision-making in the future. They highlight strategies such as:

• Avoiding High-Interest Loans:
  Steering clear of subprime lenders that offer loans with exorbitant interest rates, which can trap borrowers in cycles of debt.

• Joint Financial Decisions:
  Making significant financial decisions, like purchasing a vehicle, in agreement with a spouse or partner to ensure accountability and mutual understanding.

• Budgeting and Financial Planning:
  Utilizing tools like the EveryDollar app to create and maintain a budget, ensuring that financial commitments are manageable and aligned with one's income.

[08:04] Host C:
"You literally drive off relief. You tried to read it. You know, I just. I just want. Just give me some wheels. I got to get to work. ... And at 18% interest. Well."

The hosts critique the lender's practices, pointing out the unrealistic expectations placed on borrowers who may feel trapped by circumstances, such as needing a vehicle for employment but facing prohibitive loan terms.

Conclusion

The episode underscores the pitfalls of high-interest, subprime auto loans and the long-term financial burdens they can impose. The hosts encourage proactive measures, such as negotiating with lenders, seeking legal counsel if necessary, and, most importantly, learning from past financial mistakes to prevent future debt accumulation. Emphasizing personal growth and financial literacy, The Ramsey Show Highlights offers listeners the tools and insights needed to navigate and rectify challenging financial situations.

Notable Quotes:

• [03:06] Host A:
  "And what was the interest rate? ... The interest rate that I had on the car was 18.95."

• [05:28] Host A:
  "Good luck with that because I'm going to countersue you and we'll see how that repossession thing goes."

• [07:46] Host C:
  "Or there's a $10,000 repo fee that got lumped into."

• [08:05] Host A:
  "I've done stupid with zeros on the end. I've got a PhD in dumb."

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