We Just Moved In And Are Already Behind On Rent!

Summary

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The Ramsey Show Highlights

Episode: "We Just Moved In And Are Already Behind On Rent!"
Date: April 3, 2026
Host: Dave Ramsey with a Financial Coach
Podcast Network: Ramsey Network

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Episode Overview

In this emotionally charged and fast-paced episode, Dave Ramsey and a Ramsey Network financial coach take a call from a woman overwhelmed by debt and financial missteps after a recent job change and move. The discussion focuses on immediate financial triage, the irrationality of making employees pay for work-related accidents, and the damage of taking on outsized car debt. Ramsey delivers tough love and prescribes a harsh but necessary plan for digging out of the crisis.

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Key Discussion Points and Insights

1. Caller’s Situation: Overwhelming Debt & Recent Setbacks

• Caller and her husband are roughly $65,000 in debt, with $50,000 being an auto loan (Dodge Durango, $1,000/month payment)
• They are already behind on rent shortly after moving in, due to leaving a job that provided housing (but low pay)
• Husband has a new job earning $3,600/month; their bills are about $3,800/month
• Caller expects a $5,000–$6,000 tax return, but owes about half to a former boss for damaged equipment

Quote:
"We're behind on rent, barely staying current on the car... We have not filed taxes yet. Our plan is to get current on rent..."
— Caller [00:06]

2. Should Employees Pay for Broken Equipment?

• Former boss claims the caller’s husband owes thousands for accidentally breaking equipment at his previous job
• Dave Ramsey and the financial coach strongly reject the employer’s claim
  • No signed agreement or legal basis for liability
  • Breaking equipment during normal employment is the owner’s responsibility
  • Feeling "bad" does not mean you’re financially responsible when you're an employee

Quote:
"If George drops his computer that I own on the way out of the studio today and breaks it, George does not have to pay for it."
— Dave Ramsey [02:16]

Quote:
"That's how it works when you have employees."
— Dave Ramsey [02:40]

Quote:
"He might feel guilty, but he's not liable."
— Financial Coach [06:30]

3. The Car Loan Disaster

• The couple bought a $50,000 2025 Dodge Durango last year, rolling $10,000 of negative equity from a previous car loan into this purchase
• The car now has high mileage (35,000 miles/year), plummeting in value; worth only $26,000 per KBB
• Dave is emphatic that the car must go, as it “has a gun to your head”

Quote:
"$50,000 Dodge Durango for $1,000 a month. It's killing you."
— Dave Ramsey [04:09]

Quote:
"And never again, never again buy a car on debt the rest of your life. This should be the last one because you guys are handcuffed. This thing has a gun to your head."
— Dave Ramsey [06:49]

4. Immediate Financial Priorities

• Do not pay the ex-boss for the broken equipment—not morally or legally necessary, especially while behind on rent and car
• Sell the car as soon as possible, even if it means taking a loss; focus on affordable and reliable transportation instead
• Put ALL extra funds (including the tax return) toward essentials and debt—not voluntary payments out of guilt
• Get current on rent before addressing car or other debt
• If needed, both spouses should work to increase income

Quote:
"You guys are all going to have to be working all the time for the next three years and clean up a lot of this mess. Because everything you've touched has gone backward for the last two years. You've gone back, you've gone deeper in the hole. ... Income turns that around."
— Dave Ramsey [07:25]

5. The Ramsey Order of Priority for Money

1. Groceries (not restaurants)
2. Utilities/Lights
3. Rent/Mortgage (to avoid homelessness)
4. Transportation (car comes after housing)

Quote:
"The first thing you do with money that comes into your household, without exception, you buy groceries... The next thing you do is you keep the lights and the electricity on... You stay current on your rent so you're not freaking homeless. ... The next thing after the rent is current is the car, not the car. And then the rent. You did that backwards."
— Dave Ramsey [08:05]

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Notable Quotes & Memorable Moments

• On misguided guilt:
  "He feels bad for tearing up the guy's stuff. That he should do. That's an honorable man. But it does not make you need to pay for it."
  — Dave Ramsey [06:31]

• On the car loan trap:
  "Sell this stupid butt car. This car is insanity."
  — Dave Ramsey [03:24]

• Summing up the crisis:
  "What a mess."
  — Dave Ramsey [07:56]

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Actionable Takeaways

• Do NOT pay for employer equipment unless legally obligated
• Sell any vehicle that’s financially strangling you—immediately
• Strictly prioritize rent, food, and utilities
• Stop taking on consumer debt, especially for cars
• Everyone able must work to increase household income until stabilized
• Follow the Ramsey order for spending every single time income arrives

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Key Timestamps

• [00:06] – Caller explains their situation: $65k debt, behind on rent, tax return hopes
• [01:36] – Dave questions why they would owe employer for equipment
• [02:16] – Dave rejects the idea that employees owe for accidental equipment damage
• [03:24] – Dave and the coach order: Focus on rent, sell the car
• [04:09] – Dave rants about the crazy car loan
• [06:31] – Emotional impact: “He feels bad... but that does not make you need to pay for it.”
• [07:25] – Both spouses need to work; hard years ahead
• [08:05] – Dave lays out the priority order for handling income

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Summary Tone

Ramsey delivers a blend of tough love, firm financial instruction, and empathy. The show is direct, sometimes blunt, focused on accountability and solution-driven advice.

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Transcript

[Dave Ramsey]

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[Caller]

My husband and I, we together have about $65,000 in debt. 50,000 of that is our auto loan, which is about 1,000amonth. And we're barely staying current on it. We are behind on rent, which just started in February. The deal with that was that we were working a job where we got the house for free and now. But the job only paid like $1,000 a month, so obviously not sustainable. Our bills are about 3,800amonth. He does have a new job now that is bringing in $3,600 a month as of February 1st. So we're behind on rent, Barely staying current on the car. We have not filed taxes yet. We should be doing that this week. Our plan is to get current on rent and then about half of that we owe the last boss we had about half of. We're expecting about 5 to 6,000 return. So we're gonna owe him about half of that.

[Dave Ramsey]

For what?

[Caller]

We're just wondering like how do.

[Dave Ramsey]

Why do you owe him thousands of dollars? The guy you worked for?

[Caller]

We. Well, my husband accidentally broke a piece of equipment that resulted in about that much to fix it.

[Dave Ramsey]

Yeah, but that doesn't mean your husband is rely. Is. Had he borrowed the equipment or was he operating the equipment while he was being employed?

[Caller]

He was operating equipment while being employed. My husband is.

[Dave Ramsey]

Why does that make your husband liable?

[Caller]

He feels bad for breaking the equipment because the.

[Dave Ramsey]

That doesn't make him liable owner. You're broke. I don't care how bad he feels. Okay. If George drops his computer that I own on the way out of the studio today and breaks it, George does not have to pay for it.

[Financial Coach]

Yes.

[Caller]

Okay.

[Dave Ramsey]

That's how it works when you have employees.

[Financial Coach]

Did he sign some agreement saying that he's liable for any accidents or damages?

[Caller]

Not yet. He did tell him that he wants to pay him that. That he's owed that. Why he did come to us with an agreement.

[Dave Ramsey]

Why? Why. On what basis does the employer think the employee has to pay for broken equipment? What was the. What's the found the moral foundation of this. This is cray cray.

[Caller]

I think it was just my husband's stupidity.

[Financial Coach]

This is a month of his pay, you guys okay?

[Dave Ramsey]

Number one, the landlord is on hold, period. I mean, the. The former boss. If. If you ever pay him, it's not going to be anytime soon, number one. Number two, sell this stupid butt car. This car is insanity.

[Financial Coach]

What is this thing?

[Caller]

So I do have a question. On that. Now that you bring that up, it is a 20, 25 Dodge Durango.

[Dave Ramsey]

I bet it is.

[Caller]

Yeah. We bought it last year when we were making about $5,000 a month. And we had that job for about a year and a half.

[Dave Ramsey]

That doesn't mean you need to be stupid.

[Caller]

I know.

[Dave Ramsey]

$50,000 Dodge Durango for $1,000 a month. It's killing you.

[Financial Coach]

How far underwater are you on this thing?

[Caller]

It is worth by Kelly blue book, about 26,000. So what?

[Financial Coach]

How is that even possible? You guys drive this thing to the ground already in a year?

[Caller]

We drive about 35,000 miles a year.

[Dave Ramsey]

Why?

[Caller]

During that time we were traveling more for work and we travel about a round trip to.

[Dave Ramsey]

Did you trade a car that was upside down into this deal? I'm sorry, did you trade another deal, another car that was upside down into this deal?

[Financial Coach]

You roll over negative.

[Dave Ramsey]

Because even at 35,000 miles of Dodge Durango should not have lost half of its value in one year. They suck, but they don't suck that bad.

[Caller]

Yeah, so we had about $10,000 of negative equity on the old vehicle that we rolled into.

[Dave Ramsey]

Okay, that makes sense.

[Financial Coach]

It was 40 down to 26 because you drove it to the ground. Okay, that makes more sense at least. Is there any other debt?

[Caller]

We have 9,000, about 9,400. About 5,500 of that is personal loans and the rest is credit.

[Dave Ramsey]

Okay, all of that's on hold until you get your rent current and keep your truck current until you figure out a way to get out of this truck. And the landlord and the ex. Employer does not get any of your tax refund until you are out of debt. And even then they probably don't get any money. You do not pay for broken equipment when you work for someone. That's not how life works. Okay? If I own. If I own a heavy equipment operation, I got six bulldozers and one of the guys breaks bulldozer. He didn't have to pay for it. I have to pay for it. I'm the owner. That's how it works.

[Financial Coach]

The owner taking the risk here, the

[Dave Ramsey]

owner takes the risk. That's what owning a business is. And even if the guy, you know, made a mistake and tore it up, it's still on the owner, not on the employee. And so what you guys are engaging in. I don't. I don't understand the moral code by which you've come to this decision or your husband thinks he's liable. He's not. There's no code. I've Ever been around that says he's vi.

[Financial Coach]

He might feel guilty, but he's not liable.

[Dave Ramsey]

He feels bad for tearing up the guy's stuff that. That he should do. That's an honorable man. But it does not make. You need to pay for it. And for sure you don't pay for it when your rent's not current and you can barely pay your car payment. So you guys got to get rid of the car and get current on food, lights, water, transportation, and rent and don't get behind on those things again. And never again, never again buy a car on debt the rest of your life. This should be the last one because you guys are handcuffed. This thing has a gun to your head. You have nowhere to go. And I'm not sure how you're going to get out of this truck. It's a mess.

[Financial Coach]

You're going to need to see the difference.

[Dave Ramsey]

Yeah, you got two bad deals tied together here, and you're at 50%, you know, sub. I don't know. I don't know how you're going to do that.

[Financial Coach]

He's going to need to make a whole lot more money. And I don't know if you're working outside the home, but I think you're going to need to get a job as well.

[Dave Ramsey]

Yeah, you guys are all going to have to be working all the time for the next three years and clean up a lot of this mess. But you got. Because everything you've touched has gone backward for the last two years. You've gone back, you've gone deeper in the hole. Deeper in the hole, deeper in the hole. And you've got to turn that around. And income turns that around. And then stop doing ridiculous decisions. Turns that around. And so if you go near a car lot to buy a car on payments, again, I can't help you. You've got to stop that. It's just destructive. And so, oh, man, what a mess.

[Financial Coach]

We're seeing a higher and higher percentage of people taking on car loans over a thousand dollars. It just keeps going up.

[Dave Ramsey]

And let me also tell you guys out there, this is the second or third time today that we've taken these calls. So here's your order of priority. And you do not violate this order of priority. The first thing you do with money that comes into your household, without exception, you buy groceries, not restaurants. You buy groceries for your family. Your family eats before. Before you do anything, the next thing you do is you keep the lights and the electricity on. You have to have that to operate. And almost everyone and even in a horrible crisis can put the money together to do those two things. The next thing you do is you stay current on the rent so you're not freaking homeless. You stay current on your mortgage, you stay current on the rent, period. The next thing after the rent is current is the car, not the car. And then the rent. You did that backwards, Randy. You keep rent current because if they take the car, you at least got a place to live. If you take the house, you're living in the car. We don't want to do that. Create your free every dollar budget today. The simplest way to budget for your life.