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Dave Ramsey
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Stephanie
My husband and I recently had a baby. The last few years I've worked as a travel nurse. And because we just had the baby, I took a position as a staff making three times less than I was making before. So we're just trying to figure out how to pay off 150,000 without me going back to traveling.
Dave Ramsey
What are you making? His staff?
Stephanie
I make about 80k a year.
Dave Ramsey
What does he make?
Stephanie
He makes 82.
Dave Ramsey
82. So we have 162. And you were making bank as a travel nurse. But that's not a good idea with a brand new baby. I agree.
Stephanie
Right. We decided to come back home, but it's taken a huge hit on us financially because I'm so. I don't want to say I'm used to the money, but.
Dave Ramsey
But you're used to the money.
Stephanie
Yeah.
Dave Ramsey
Yeah. That's okay. That's a normal thing.
Rachel Cruze
I mean, 240 versus 80s different. That's okay to say.
Stephanie
Yeah.
Rachel Cruze
Yep.
Dave Ramsey
So were you making huge progress when you had the 240?
Stephanie
We did make some progress, but not as much as we wanted to.
Dave Ramsey
What did you do? What were you doing? Where were you screwing off?
Stephanie
Well, I mean, we purchased a house that was a. I don't want to say it was a complete fixer upper, but we put about 100.
Dave Ramsey
You bought a house while you were trying to get out of debt? Well, that doesn't work.
Stephanie
Yeah. At least we have a house now though. And we wanted to have the house before we had the baby, so that's kind of what happened.
Dave Ramsey
Okay, well, the reason you haven't gotten out of debt is you put paying off the debt further down your list of priorities.
Stephanie
Yeah,
Dave Ramsey
that's going to have to change. And so your priorities don't include eating out anymore. Your priorities don't include going on vacation anymore. Your priorities don't include spending $80,000 fixing up the nursery for a newborn who doesn't even know that stuff's there.
Stephanie
Right.
Dave Ramsey
Gotcha.
Stephanie
So the thing is, my husband and I are actually pretty frugal.
Dave Ramsey
No, you're not.
Stephanie
I would say we are.
Dave Ramsey
No, you were making $240,000 a year and you didn't pay off hardly any debt. You're not frugal.
Stephanie
Well, we're trying to be.
Dave Ramsey
No, in your mind you are, but you're not. The reality is you spent the money. That's not. That's the opposite of frugal.
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Dave Ramsey
So you're going to have to get frugal, though, if you want to make progress.
Rachel Cruze
Could y' all live on one income for two years?
Dave Ramsey
Like 80 grand?
Stephanie
Yeah, I mean, that's what we're trying to figure out. We have. We consolidated our loan into $1,000 payment, and then our mortgage is about 2400. So that is our debt, period. We have it all together and focused into two bills. So one is our mortgage and two is our. Our personal debt.
Dave Ramsey
Okay, well, if you can, you know, buy food, lights and water and throw money at this debt. 75 a year gets you out of debt in two years, right?
Stephanie
How? I said how?
Dave Ramsey
Well, you make 160.
Stephanie
Yeah, but how do we. How do we do that? How do we live on one income when. When we pay like 2000 for one debt and then 2400 for another?
Dave Ramsey
Well, I thought you said it was a thousand. But the 2000 go towards the debt is part of the 75.
Stephanie
Okay.
Rachel Cruze
Yeah.
Stephanie
So, I mean, they get more focus.
Rachel Cruze
Yeah. Are you guys on a budget? Stephanie?
Dave Ramsey
162. 162 minus 75.
Rachel Cruze
Okay, I got you, Dave. Here, you cough. Turn off your mic and cough. Stephanie. Are you guys doing a budget, a written budget?
Stephanie
We are, and I have it in front of me.
Rachel Cruze
You do? Okay, so where are things that. What is left after you pay your mortgage? Like all the necessities that you have to have. What is left? How much is left?
Stephanie
I'm looking at the monthly total. Not very much. We're putting 1900 into child care alone.
Rachel Cruze
Into child care? 19.
Dave Ramsey
Wait a minute. Why are you. I thought you. Oh. Oh, yeah. For one baby.
Stephanie
For one baby, we pay $20 an hour.
Rachel Cruze
Is it daycare?
Stephanie
No, it's a babysitter. We couldn't find any openings for daycare around us. That's what we wanted to do, but we're paying for a babysitter, so it's 20 bucks an hour. Okay, so.
Rachel Cruze
So. So the. I mean, the reality is, Stephanie, that you guys. It may take you three years. I don't Know the plan. But you. But to have a level of intensity that you guys have never had before is what this is going to require to get out of this. And is the 150. Was that student loans? What was it?
Stephanie
So 150 total. So we have about 60 in student loans and then 100,000 in personal loans.
Rachel Cruze
And personal loans. Is that car debt, too?
Stephanie
No, we paid off all our cars.
Rachel Cruze
What did you use the personal loan for?
Stephanie
So we. It was a combination of a roof plumbing on our house.
Rachel Cruze
Oh, for the house?
Stephanie
Yeah. So it was a combination of our roof plumbing on our house, and then we had some credit card debt.
Dave Ramsey
Okay, what do you owe on your home?
Stephanie
Currently we owe 281,000.
Dave Ramsey
What is it worth?
Stephanie
I would say about 500,000.
Dave Ramsey
Yeah. Okay. Well, some of what you're paying off is not consumer debt. It was part of purchasing the home. So, you know, if you rolled some of that into a refinance, that wouldn't be the end of the world. But I wouldn't do that. I think you guys make enough to plow through this, but you're going to have to just look at this budget and go scorched earth. Beans and rice. Rice and beans, nothing. Spending nothing.
Rachel Cruze
Yeah, so that. That's what's. I mean, yeah, it. It is. It's just. It's. It's the mindset of having to. The deeper you sacrifice, the faster you're going to get out. And that may mean him working extra at night, too. Stephanie working weekends, bringing in even more income over time. But again, the deeper and faster you sacrifice, the faster you're going to get out. And the less you sacrifice, the less you kind of make everything a little bit more comfortable, the longer it's going to be of that process. So it really. It comes down to families, I mean, honestly, looking at each other and just choosing like, okay, have you stopped all
Dave Ramsey
your contribution to retirement
Stephanie
paying into that? We're paying about $7,000 each year to both of us.
Rachel Cruze
Oh, you are? Okay. So if you stop that, that's $7,000 freed up. So pause retirement.
Dave Ramsey
14.
Rachel Cruze
Yeah. Pause retirement temporarily.
Stephanie
We have a lot of money in our retirement, but we want to make sure that we're set for.
Rachel Cruze
You're going to be fine, Stephanie. You're. Yeah, but this 150 is hanging, Stephanie.
Dave Ramsey
If every time we bring up something on how you can get out of debt, you tell me why you can't do it, I can't help you.
Stephanie
Oh, no, I don't mean to be like that. I'm Just.
Dave Ramsey
Well, you are. So. I mean, you got. You got to stop doing that. Okay? You need to stop retirement. You need to go through this budget with a scorched earth idea and burn the place down. You make a tenth of. I mean, you make a third of what you used to make. And you weren't even making it on that, and you were calling yourself frugal. So you've got to sit down and start looking at this and going, okay, we have got to treat this like our hair is on fire. We've got to treat this like the future of our family is dependent on getting rid of this stupid debt. Regardless of how we got into it, this is how we get out. We stop all retirement. We stop eating out. We stop going on vacations. We stop anything that looks like a luxury, and we plow into this debt like our life depended on it. And in two years, you could be done, maybe three. But two, you should be done. You can pick up shifts at the er. You can. He can pick up shifts here and there. The good news about nursing is you can always up your income temporarily without destroying the family, without going back on the road. I agree with your decision to come off the road. The baby, I agree with that. But then we went and hired a nanny, basically. And you know when you have $150,000 in debt and you make 162,000, you don't live in nanny Land. That's not Nanny land. Nanny land is more income than you make and less debt than you've got. So that's where you are.
Rachel Cruze
And for a period of time. For a period of time.
Dave Ramsey
Just for a short period of time, what have we got to do to go crazy to clean up this mess we've made? And no excuses, no rationalizations. You got to end it. Create your free every dollar budget today. The simplest way to budget for your life.
Episode Title: This Is The Reason You Haven't Gotten Out Of Debt
Date: March 27, 2026
Hosts: Dave Ramsey, Rachel Cruze
Guest Caller: Stephanie
In this episode, Dave Ramsey and Rachel Cruze advise Stephanie, a nurse who recently transitioned from a high-earning travel position to a lower-paid staff role after having a baby. Stephanie and her husband are struggling to pay off $150,000 in debt on a $162,000 combined income while navigating child care and a recent home purchase. The discussion zeroes in on the real reasons they haven’t made more progress on their debt, exploring budgeting, financial discipline, and the importance of eliminating excuses.
Why Debt Remains:
On Frugality:
Major Expenses:
Budget Challenges:
Sacrifice Required:
Increase Income Options:
Retirement Contributions:
Facing Excuses:
No Rationalizing:
Sense of Urgency:
Living Within Means:
On Priorities:
On Perceived Frugality:
On Excuses:
On Sacrifice:
On Urgency:
On Justifying Expenses:
The episode offers a blunt but hopeful perspective: If Stephanie and her family make radical, unified sacrifices now, they can be debt-free within 2–3 years, setting up a strong financial future for themselves and their child.