I’ve Never Made Good Financial Choices

Summary

Podcast Summary: "I’ve Never Made Good Financial Choices"

Podcast Information:

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Description: The Ramsey Show Highlights offers a quick, daily dose of life and money advice in under ten minutes. Featuring experts like Dave Ramsey, Ken Coleman, Rachel Cruze, Dr. John Delony, George Kamel, and Jade Warshaw, it’s part of the Ramsey Network and available seven days a week.
• Episode: I’ve Never Made Good Financial Choices
• Release Date: March 5, 2025

---

Introduction

The episode begins with Dave Ramsey introducing a segment sponsored by Y Refi, a service that helps refinance defaulted private student loans (00:02). This brief introduction leads into the main content, where Dave Ramsey engages with a caller named Sharon who is struggling with significant debt.

---

Caller Introduction: Sharon’s Financial Struggles

Timestamp: 00:09 - 02:15

Sharon reaches out to Dave Ramsey, candidly admitting her poor financial decisions and the resulting debt:

Sharon (00:09): "Ramsey, I have a kid going off to college next year, and I am in a ton of debt. I have not made good financial choices or money choices. I've never learned how to be totally honest. But that's not an excuse. I just don't. I just haven't made the good choices. And so it was recommended to me to file bankruptcy. And I just need to know if that's even, like, a wise thing to do. I have a lot of credit card debt."

Sharon outlines her debt situation, revealing a total of approximately $125,000 in student loans, $20,000 in credit card debt, a $26,000 car loan, and two civil suits from credit card companies totaling $15,000. She earns $30,000 annually working in ministry for her church.

Sharon (00:56): "I have about 20,000 in credit card debt."

Sharon (01:27): "I make $30,000 a year. I work in ministry for my church."

Sharon expresses her uncertainty about filing for bankruptcy and seeks Dave Ramsey’s guidance on whether this is a prudent step given her circumstances.

---

Dave Ramsey’s Assessment of Sharon’s Situation

Timestamp: 02:15 - 04:19

Dave Ramsey delves deeper into Sharon's financial predicament, asking critical questions to understand her debt and income better:

Dave Ramsey (00:38): "Okay, walk me through your debts real quick. How much debt?"

Throughout the conversation, Dave emphasizes the severity of Sharon’s financial situation. He discusses potential career changes, suggesting that moving back into the school system could slightly increase her income from $30,000 to approximately $40-45,000.

Dave Ramsey (02:20): "What would you, if you weren't doing what you're doing now, do?"

Sharon contemplates a career shift, recognizing that even a modest raise could provide some relief but acknowledges it’s not enough to resolve her debt issues fully.

Advice on Car Loan:

Dave strongly advises Sharon to sell her current $26,000 car to eliminate the car loan burden, highlighting that the car’s value is nearly her annual income.

Dave Ramsey (03:12): "Sell it. Because, I mean, it's basically how much you make in a year."

The Financial Advisor concurs, recommending she sell the car immediately, even if it means taking a larger loan to cover the difference, with the ultimate goal of downgrading to a more affordable $5,000 vehicle.

Financial Advisor (03:19): "I would sell your car tomorrow."

Bankruptcy Consideration:

Dave and the Financial Advisor firmly advise against filing for bankruptcy at this stage, suggesting that Sharon is not yet at that point.

Financial Advisor (04:08): "But do not, do not, do not file bankruptcy. You're not there yet."

They recommend alternative solutions, such as enrolling in Financial Peace University and utilizing the EveryDollar premium budgeting tool to gain better financial education and control.

Financial Advisor (04:19): "Hook up with Financial Peace University and the every dollar premium and give you the education that you're missing."

---

Key Insights and Recommendations

1. Comprehensive Debt Assessment:

   • Sharon’s debt includes substantial student loans, manageable credit card debt, a high-value car loan, and impending civil suits.

2. Income vs. Debt:

   • With an annual income of $30,000, Sharon’s debt significantly overshadows her earnings, creating a precarious financial situation.

3. Career Adjustment:

   • Transitioning back into the school system could provide a modest income increase, which, while beneficial, is insufficient alone to eliminate debt.

4. Asset Liquidation:

   • Selling the $26,000 car to reduce or eliminate the car loan is crucial. Downgrading to a more affordable vehicle is a necessary step toward financial stability.

5. Avoiding Bankruptcy:

   • Bankruptcy is discouraged at this stage. Instead, Sharon is advised to seek financial education and implement structured budgeting strategies.

6. Financial Education:

   • Enrolling in Financial Peace University and utilizing budgeting tools like EveryDollar can empower Sharon to make informed financial decisions and develop a plan to repay her debts systematically.

---

Notable Quotes

• Sharon on Financial Honesty:

  "I've never learned how to be totally honest. But that's not an excuse. I just don't. I just haven't made the good choices." (00:09)

• Dave Ramsey on Selling the Car:

  "Sell it. Because, I mean, it's basically how much you make in a year." (03:12)

• Financial Advisor on Avoiding Bankruptcy:

  "But do not, do not, do not file bankruptcy. You're not there yet." (04:08)

• Financial Advisor on Seeking Education:

  "Hook up with Financial Peace University and the every dollar premium and give you the education that you're missing." (04:19)

---

Conclusion

In this episode of The Ramsey Show Highlights, Dave Ramsey provides compassionate yet straightforward advice to Sharon, who is grappling with overwhelming debt and contemplating bankruptcy. The discussion underscores the importance of asset liquidation, career reassessment, and financial education as viable steps to regain financial stability. The episode emphasizes that while bankruptcy may seem like an immediate solution, structured financial planning and education can offer a more sustainable path to financial freedom.

For listeners facing similar challenges, this episode highlights the critical steps of assessing debts, adjusting expenditures, seeking financial education, and avoiding precipitous measures like bankruptcy until all other options are thoroughly explored.

---

Additional Resources Mentioned

• Y Refi: A service to refinance defaulted private student loans. yrefi.com
• Financial Peace University: An educational program offered by the Ramsey Network.
• EveryDollar Premium: A budgeting tool recommended for managing personal finances.

---

This comprehensive summary encapsulates the key discussions, insights, and actionable advice presented in the episode "I’ve Never Made Good Financial Choices." By addressing Sharon’s financial dilemmas, Dave Ramsey and his team provide valuable lessons on debt management, financial honesty, and the importance of informed decision-making.

Transcript

[Dave Ramsey]

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

[Sharon]

Ramsey so I have a kid going off to college next year, and I am in a ton of debt. I have not made good financial choices or money choices. I've never learned how to be totally honest. But that's not an excuse. I just don't. I just haven't made the good choices. And so it was recommended to me to file bankruptcy. And I just need to know if that's even, like, a wise thing to do. I have a lot of credit card debt.

[Dave Ramsey]

Okay, walk me through your debts real quick. How much debt?

[Sharon]

Okay, so I have student loans. I know that bankruptcy doesn't take care of those, so I have over 100,000 in student loans, I believe.

[Dave Ramsey]

Is that like, right at, like, right at 100 or like 120?

[Sharon]

I think it's about 125.

[Dave Ramsey]

125 in student loans. Okay, keep going.

[Sharon]

I have about 20,000 in credit card debt.

[Dave Ramsey]

Okay.

[Sharon]

I just had to buy a new car because my old car clunked out on me. That one was paid off, so now I have a car loan.

[Dave Ramsey]

How much is the car?

[Sharon]

I'm at 26,000.

[Dave Ramsey]

What?

[Sharon]

I own my car.

[Dave Ramsey]

Okay.

[Sharon]

And then I have two civil suits from credit card companies.

[Dave Ramsey]

Okay, and how much are Those?

[Sharon]

One is 9,000 and the other is 6,000.

[Dave Ramsey]

Okay. And how much do you make a year?

[Sharon]

I make $30,000 a year. I work in ministry for my church.

[Financial Advisor]

Oh, you can't do that anymore, Sharon. I'm so sorry. I know you have to let them know that you love them, but. Yeah. You can't breathe, hun.

[Sharon]

I can't?

[Dave Ramsey]

Yeah.

[Financial Advisor]

Yeah. And I know you. You want to do this ministry, and I know you do good work for people, but, um, you gotta take care of your family, and you've dug yourself a pretty big hole and you gotta go get it.

[Sharon]

Mm.

[Dave Ramsey]

What's your degree in?

[Sharon]

I have a communications degree and a master's in education. Okay.

[Dave Ramsey]

Okay. What would you, if you weren't doing what you're doing now, do? What's like, probably the most realistic next step career wise for you, do you think?

[Sharon]

Probably going back into the school system.

[Dave Ramsey]

Okay. And how much. How much would starting out be if you. If you started as a teacher?

[Sharon]

Probably about 45. 40. Between 40 and 45.

[Dave Ramsey]

Okay. Okay. So that would be. That would be my next step. I would go talk to them tomorrow. I mean, I. I hate to say it. Math. We.

[Financial Advisor]

It's a 50% raise, let me put it that way. And 45 is not enough, but that's a 50% raise.

[Dave Ramsey]

Yeah, that, you know, and I think too, you know, nonprofit ministry work, all of that. I mean, we, we are big fans of people in those worlds and, and maybe eventually that's your goal, to get back there. Right? I mean, if you could imagine having no payments, having an emergency fund, having a great retirement set up, and you're like, you know, I can go back to 35 because I have everything set up. Right. That would be a goal for you, which I think is amazing. But for right now, reality, it would be that. So what I would do is your car. I would sell it.

[Financial Advisor]

I would sell your car tomorrow.

[Dave Ramsey]

Sell it. Because, I mean, it's basically how much you make in a year. And I would go get a $5,000 car. If you can get a difference. I wonder how much. Have you Kelly blue booked it at all? I know you just bought it, but have you seen if you could. Have you looked up if you could sell it?

[Sharon]

No, I haven't, but I will.

[Dave Ramsey]

Okay.

[Financial Advisor]

Even if you have to take $5,000 down to the credit union where. And you're upside down on it, I'd rather you do that because then you only owe 10,000. You're going to take a $5,000 loan out, pay the difference off because you're upside down, and take out a $5,000 loan.

[Dave Ramsey]

Was it a brand new car or was it used when you bought it?

[Sharon]

No, it was brand new.

[Dave Ramsey]

It was brand new. Okay, so you'll probably take. Yeah, you'll take a hit. So hopefully you could still get maybe like, you could maybe sell it for 21, 22. You'll take a little bit of a smaller loan for a difference. It gets you a $4,000 car, and that'll at least free up that car payment.

[Financial Advisor]

But no, do not, do not, do not file bankruptcy. You're not there yet. Hang on the line. Hook up with Financial Peace University and the every dollar premium and give you the education that you're missing. But do not file bankruptcy. You're not there yet.

[Dave Ramsey]

Why? Refi Refinances delinquent private student loans for struggling borrowers. Learn more at Y r e f y.com Ramsey.