My Mom Secretly Racked Up $186,000 Of Debt In My Name and Ruined My Credit Score

Summary

Podcast Summary: "My Mom Secretly Racked Up $186,000 Of Debt In My Name and Ruined My Credit Score" The Ramsey Show Highlights Release Date: June 17, 2025

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Introduction

In this emotionally charged episode of The Ramsey Show Highlights, Jessica shares her harrowing experience of discovering that her mother had been using her Social Security number since she was two years old. This revelation surfaced when Jessica turned 18 and attempted to purchase a car, only to find herself burdened with an overwhelming $186,000 in credit card debt and a severely damaged credit score. Hosts Dave Ramsey and Rachel Cruze, along with guest experts, provide Jessica with actionable advice to navigate her financial turmoil.

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Jessica's Dilemma

[00:11] Jessica:
Jessica begins her story by explaining how her mother had been using her Social Security number for years, leading to a significant accumulation of debt. "I found out at 18 my mom had been using my Social Security number since I was 2 years old... $186,000 in credit card debt just alone," she reveals, highlighting the depth of the financial crisis she faces.

Impact on Credit:
Upon discovering the debt, Jessica took legal action to have her credit wiped. However, this left her with a nonexistent credit history and a tarnished credit score. As a result, traditional avenues for credit, such as securing a car loan or obtaining a credit card, are inaccessible to her. "Not even a secure credit card will touch me," Jessica laments.

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Financial Advisors' Advice to Marry

[01:27] Dave:
Dave Ramsey challenges the advice Jessica received from financial advisors, questioning the logic behind recommending marriage solely as a financial strategy. "Why are financial advisors telling you that the best thing to do is to get married? Because that feels like a financial reason, not a good reason, to get married," he probes, emphasizing the importance of evaluating motivations beyond financial convenience.

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Exploring Income and Savings

[02:27] Dave:
Dave shifts the focus to Jessica's current employment and income, asking, "What do you do for a living and how much do you make?" Jessica responds that she works as a debt collector, earning approximately $18 to $19 an hour after commissions.

[02:59] Dave:
Dave proposes a pragmatic solution: saving $10,000 to purchase a car outright. "Could you buy a car with $10,000 cash, yes or no?" he asks. Jessica affirms, recognizing that this is feasible if she can allocate her savings towards this goal.

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Rachel Cruze's Guidance on Living Debt-Free

[03:27] Rachel:
Rachel introduces a paradigm shift, advising Jessica to view her situation as an opportunity to live debt-free rather than being constrained by a poor credit score. "We actually don't care about the credit score because primarily you use a credit score to go into more debt," Rachel explains, encouraging Jessica to focus on building a debt-free life.

Budgeting and Savings Plan:
Rachel emphasizes the importance of creating a detailed budget that prioritizes essential expenses: food, shelter, utilities, and transportation. Everything beyond these essentials should be directed towards saving for a car. "Your biggest need is what you're saying is a car... so let's just make it a goal for you," Rachel advises.

[05:32] Dave:
Dave questions the necessity of a loan for Jessica's final semester in college, suggesting that her immediate priority should be saving for a car and stabilizing her finances before focusing on education.

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Strategies for Financial Recovery

[06:00] Rachel:
Rachel encourages Jessica to adopt aggressive saving strategies, such as taking on side hustles to earn extra income. "Let’s say you work extra and earn an extra $2,000 a month," she proposes, outlining a timeline where Jessica could have enough saved for a car by mid-year and additional funds for tuition by the end of the year.

[07:42] Dave:
Dave offers a specific example from the Columbia, South Carolina area, mentioning a 2009 Toyota Camry available for $3,700. He suggests purchasing the car with cash, sharing, "You walk up there with $3,200 in $100 bills and say... they'll give it to you so fast, your head will spin."

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Addressing Emotional and Psychological Challenges

[08:18] Rachel:
Rachel confronts the emotional aspect of Jessica's predicament, questioning why Jessica still considers conventional financial tools despite knowing their drawbacks. "Why are you then still dabbling in this idea? Like, I can't get a credit card. I can't get a car loan... but you're still giving it an option," she asks, urging Jessica to adopt a firm stance against debt.

[09:02] Rachel:
Rachel reinforces the importance of maintaining financial independence and avoiding further debt. "Pay cash or anything. It is possible, Jessica. You can do this and keep things separate from the boyfriend right now," she advises, emphasizing that financial decisions should be based on love and not financial necessity.

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Final Takeaways and Encouragement

[09:39] Dave:
Dave humorously sums up the episode with encouragement, stating, "She's been hypnotized. Stop staring at the sun," reinforcing the need for Jessica to focus on practical solutions rather than being overwhelmed by the situation.

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Conclusion

This episode of The Ramsey Show Highlights serves as a powerful testament to overcoming financial adversity through strategic planning and disciplined budgeting. Jessica's story underscores the importance of taking control of one's financial destiny, even in the face of significant challenges like identity theft and debt accumulation. With the guidance of Dave Ramsey and Rachel Cruze, listeners are inspired to prioritize essential needs, eliminate debt, and build a secure financial future without relying on traditional credit systems.

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Notable Quotes:

• Jessica [00:11]:
  "I found out at 18 my mom had been using my Social Security number since I was 2 years old. Found out I had $186,000 in credit card debt just alone."

• Dave [01:27]:
  "Why are financial advisors telling you that the best thing to do is to get married? Because that feels like a financial reason, not a good reason, to get married."

• Rachel [03:27]:
  "We actually don't care about the credit score because primarily you use a credit score to go into more debt."

• Dave [07:42]:
  "You walk up there with $3,200 in $100 bills and say. And say, guys, this is what I'm going to pay you for this car. They'll give it to you so fast, your head will spin."

• Rachel [09:02]:
  "Pay cash for everything, and you don't have to worry about it. And if some cell phone company pulls up your credit report, you can just show them the police report and be fine."

• Dave [09:39]:
  "She's been hypnotized. Stop staring at the sun."

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This summary encapsulates the key discussions, insights, and actionable advice provided in the episode, offering a comprehensive overview for those who haven't listened to the full podcast.

Transcript

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[Jessica]

My quick question is. I was a victim of identity theft. I found out at 18 my mom had been using my Social Security number since I was 2 years old. Found out at 18 when I went to go get a car, and they wouldn't even touch me with the co signer with an 800 credit score, no money down. Found out I had 800. $186,000 in credit card debt just alone.

[Rachel]

Wait, wait, wait. Say that again, Jessica. One hundred and what?

[Jessica]

$186,000 in credit card debt that your mom racked up? Yes.

[Rachel]

Oh, Jessica, how long ago was this?

[Dave]

Oh, my word.

[Jessica]

I mean, all the way back to 2005. The most recent one was in 2021, which was right before I was 18. And I got it with an attorney and we got my credit wiped, but what it left me with was zero credit history and horrible credit score. Not even a secure credit card will touch me. Now. I have a significant other. We're not married, but we have gone to plenty of financial advisors, and we have been told both that our best option is to get married, because, again, I can't get even a credit card in my name. I'm an authorized user on only one card, and I can't be an authorized user on a lot of other credit cards.

[Dave]

Jessica, slow. No, you're not. Actually, this is going to be a great call for you because you're not stuck. But quick question here, and Rachel's going to give you some amazing guidance here, I promise you. But why are financial advisors telling you that the best thing to do is to get married? Because that feels like a financial reason, not a good reason, to get married. So I want to dig into that first. What are we trying to accomplish?

[Jessica]

Yes, they always say sign if I can. And I don't have a car in my name, I can't get a car of my own. We share my partner's car. We moved up here to South Carolina from southwest Florida, away from my grandmother and to live up here near my father. And I work from home, which isn't a big deal, but our biggest issue right now is we have one car.

[Dave]

Okay, all right, slow down. Slow down.

[Jessica]

I'm stuck.

[Dave]

So you're not. You're not stuck. This is the theme of this call. All right, I'm just going to ask a quick question here, Rachel, I'll get out of your way, but I Want to ask a question here?

[Jessica]

Yes.

[Dave]

What do you do for a living and how much do you make? And I have a quick follow up, so give me the real quick stats. What do you do and how much do you make?

[Jessica]

I'm currently a debt collector for Advance America, and I'm currently making about, after commission, 18 to 19 an hour, 40 hours a week.

[Dave]

All right, so if you could save up money for. Let's say you could save up $10,000. I don't care how long it takes you. Could you buy a car without a credit card? Could you buy a car with $10,000 cash, yes or no?

[Jessica]

Yeah, most definitely. I mean, there's plenty of good vehicles for that price.

[Dave]

So I'm challenging some of your thinking here. I want to. Rachel's going to guide you here, but I want to challenge this idea that you're stuck because you have no credit score and that you have to get married in order to have a car. You have a job, and you can go buy a $5,000 car, a $7,500 car. I just want to make sure you catch that.

[Jessica]

Definitely. Most definitely.

[Dave]

All right. I want to get out of the way, Rachel, because I know you got.

[Rachel]

Some questions, but mind, I mean, the paradigm shift that you have to have, Jessica, is a pretty big one, because everything you've been talking about so far on this call has to do with how do I live my life around having a great credit score. And actually, you called the Ramsey show, and we're the opposite. We actually don't care about the credit score because primarily you use a credit score to go into more debt, is what. And you're finding that out when you're trying to go get a car loan, they won't give it to you because you have a bad credit score. You try to go deeper into debt with a credit card. They won't give you a credit card because of that. So living debt free. This is actually a gift, Jessica. You don't even have the option. Most people listening right now could go apply for a credit card. You don't have the option. So see that as a blessing, because I don't want it an option for you, even if you had a great credit score. So how do we live life debt free? Well, number one, starting out, your biggest need is what you're saying is a car. I almost think your biggest need is maybe a new job as a debt collector. That can't be a very fun job. So I want Ken to even talk about that.

[Dave]

Yeah, you're limited there.

[Rachel]

I Think you can do some really great work, Jessica. And I think you can work overtime. Do you have kids?

[Jessica]

Yes, I do not.

[Rachel]

So, Jessica, I would make a priority right now to say here making a very detailed budget, knowing exactly what you need in life for food, shelter, utilities, transportation, and that's about it. Like, I mean, we're just going on the basics here. Everything else is going to go to save up for a car. And maybe $5,000 is your goal, whatever it may be, because you don't. Do you have, do you have any consumer debt in your name? No, no, it's all okay. And you're fighting this whole $186,000, right?

[Jessica]

Well, we, we successfully sued the credit and it got wiped 100%.

[Dave]

How much do you have in savings?

[Rachel]

Okay, yes.

[Dave]

Do you have any savings currently?

[Jessica]

No. We just used our savings to move and, you know, get out of southwest Florida because the jobs there weren't any good. And we're currently trying, I'm trying to get back into college. I have one semester left to get my associates, but again, my mother messing with my identity has affected my tax forms to getting grants and loans.

[Rachel]

You don't need a loan.

[Jessica]

We're working on.

[Dave]

Listen, listen, Jessica, you don't need a loan to get one more semester paid for. And I think your remaining semester of your associate's degree is secondary to what Rachel is saying, which is, let's get some money saved, let's get on a budget and let's buy a car.

[Rachel]

Because, Jessica, we have people call the show all the time and they're trying to get out of debt. And so when we talk about getting out of debt, for instance, we say you cut everything and you work extra. And we have people in a very normal rhythm on the show that are making an extra thousand twelve hundred dollars above their income on side hustles. So let's just make it a goal for you. And especially since you don't have kids, be like, hey, evenings I'm working, like, whether you're waiting tables. I mean, you are doing something and let's just go crazy and let's say you earn an extra. Let's go two grand a month. I know that sounds crazy, Jessica, but seriously, like, what if you worked your butt off, earned an extra 2,000, that means sitting right now where we are in the calendar by July, August, you could have a car. By depending on how much that one semester costs you between now and December, after you have a car, another couple of months of working extra, you could have saved, you know, six, $8,000 for your tuition. So that's like. That's literally between now and the end of the calendar year, Jessica. So, like, it is possible. You just have to make some really big goals. Goals. And you have to. Not that you're playing victim to this by any means, but don't be. But don't be leaning on the. On the credit industry to get you out. Yeah, Jessica, you can get you out.

[Jessica]

We're fed. We're fed our whole lives that credit is what matters. I mean, again, we moved up here with the intent to buy a home, and we found out quickly that I couldn't be on it. I guess that's really what Debbie.

[Rachel]

Well, and you don't need to buy a home with someone you're not married to, either, Jessica.

[Dave]

Or get married, or get married at the advice of a financial advisor. So you can get a car. All right, now, listen. Listen to this. I just found. This is in the Columbia, South Carolina area. Okay? I just found a 2009 Toyota Camry, 182,000 miles, which, on a Camry, might as well be a new car. Okay? That car can go for 482.

[Jessica]

Oh, I know.

[Dave]

All right, listen to this. $3,700 they want for this car. You walk up there with $3200 in $100 bills and say. And say, guys, this is what I'm going to pay you for this car. They'll give it to you so fast, your head will spin. No credit. Do you hear me?

[Jessica]

Yes, I do. I've had plenty of. I mean, my first car was an 05 Civic.

[Rachel]

So I want to know for you, because we've thrown out a couple of things, whether it's cars or college or not buying a house with someone you're not married to, and you're a rebuttal to us. This whole call has been. Oh, I know. Oh, I know.

[Dave]

I know.

[Rachel]

But why. Why are you then still dabbling in this idea? Like, I can't get a credit card. I can't get a car loan. I can't get a student loan, you're saying, you know, but you're still giving it an option. Why?

[Jessica]

No, I think it's just more so again. I mean, we. I mean, my whole family is. I. I mean, obviously they're not, you know, they got their own troubles. But the whole thing is, you know, to have great credit and to not have this negative stuff dragging behind you, and even though I got my credit history wiped, you know, everything nowadays, they want to pull some type of credit, even Buy your page.

[Dave]

No, they don't.

[Rachel]

If you pay cash, buy now, pay later is horrible, Jessica. Like, that's what I'm saying. You don't need to worry about those stuff.

[Dave]

You don't know.

[Jessica]

I know.

[Dave]

No, you stop saying you know.

[Jessica]

It's more so the. The availability. And you know.

[Rachel]

But you only need it, Jessica. You really only need it to go into debt. And that's what we're telling you is pay cash. Just pay cash for everything, and you don't have to worry about it. And if some cell phone company pulls up your credit report, you can just show them the police report and be fine. Like, you can get away with other things, but you. You have to be convicted about this, Jessica. You're going to keep getting pulled. I feel like you're getting pulled into it, even though you're saying, I know. So you need to stand firm. Pay cash or anything. It is possible, Jessica. You can do this and keep things separate from the boyfriend right now and live your life. Get yourself a car, save up for the semester, get your college degree, and ride off into the sunset. And then maybe get married because you love him, not because of his credit score.

[Dave]

She's been hypnotized. Stop staring at the sun.

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