The Ramsey Show Highlights

Episode: We Make $300,000 And Can't Pay Off Debt

Date: November 24, 2025
Hosts: Dave Ramsey, Christy
Guest Caller: Carlos

Episode Overview

This episode features a call from Carlos, a high-income earner who, despite making around $300,000 a year with his wife, finds themselves struggling with debt after previously reaching financial peace. The conversation centers on how Carlos and his family backtracked financially—moving from being debt-free and mortgage-free (Baby Step 7 in Ramsey methodology) to accumulating credit card and car debts. Dave and Christy provide candid advice, address the behavioral pitfalls behind their choices, and illustrate why ongoing discipline with spending is essential, especially as income rises.

Key Discussion Points & Insights

1. Carlos’s Financial Journey: From Baby Step 7 to Backsliding

• Background:
  • Carlos (54) and his wife (52) together earn about $300,000 annually (Carlos $115k, wife $170k).
  • Three children: one in college, two in high school.
  • In 2020, reached Baby Step 7 (debt-free, including the mortgage).
• Reversal:
  • After paying everything off, they borrowed again for lifestyle upgrades (cars for kids, travel, luxury car).
  • Currently facing $29k in 0% credit card debt, $17k car loan, and a car lease.
• Notable Quote
  • Carlos: "For one split second, and around this time in 2020, right in the middle of pandemic, we were on baby step seven. Everything we had paid off the house. We did everything. But now..." (00:06)

2. How Did This Happen? The Temptation of Lifestyle Creep

• Post-pandemic, Carlos and his wife splurged—travel, Mercedes, new cars for kids.
• Hosts use humor but highlight the poor financial decision to "go back to the start after finishing the marathon."
• Christy calls out the regression:
  • Christy: "Carlos, what did you do backwards? We're supposed to go forwards." (00:51)
  • Dave: "You cross the marathon finish line, you're like, you know what? I’m gonna go back to the starting line and start again." (00:58)

3. Current Debt Situation

• $29,000 in credit card debt (0% interest)
• $17,000 remaining on a car loan for one child (paying it off aggressively)
• One vehicle lease, other cars paid off
• No new mortgage taken out

Carlos Confirms Their Debts

• "We have about $29,000 in zero interest credit card debt... then we have one lease of a vehicle... daughter's car paid off, second son... brand new car... about 17 grand left." (02:02)

4. Behavioral Insights: The Real Cause

• Carlos blames Miami lifestyle, post-COVID FOMO, and high consumer temptation.
• Dave and Christy push back, emphasizing personal responsibility and the need for “grown-up” behavior regarding money.
• "You didn’t have to throw a huge kegger... take ownership. You did it." – Dave Ramsey (03:42, 04:03)
• "Your behavior has gotten completely out of control." – Christy (04:38)

5. Living Below Means—A Wealth Secret

• Despite $300k income and no house payment, they’re still in debt due to impulse spending.
• Dave: “If you guys lived, you don’t have a house payment, okay?... If you just lived on a hundred thousand, God forbid, you’ll have $200,000 extra.” (04:20)

Christy's Direct Advice

• "Cut up the credit cards, and we're going to live life differently. I don't know if you're going to do it, Carlos. I don't know." (09:27)

6. Lessons from a Government Furlough

• Carlos, a federal employee, is currently not getting paid due to a shutdown; family survives on his wife’s income alone.
• Realizes they can live on one income and should use the other to erase debt quickly.
• "With this government shutdown... we've proven one thing... we can live off your check and then use my check to pay off this stuff." – Carlos (05:48)

7. Long-Term Principles: Peace, Responsibility, and Example for Kids

• Dave challenges Carlos to think of peace of mind and the impact of modeling strong financial habits for their kids.
• Christy: "What are you setting for them? The example? ... We have a level of limits and boundaries, because that’s what money... is part of the name of the game." (08:30)
• The episode ending stresses the need for maturity and planning, not impulsive decision-making.
• Dave: "The greatest thing you can give to your wife is to say, 'hey, for the first time in our marriage, I want to act like grownups.'" (07:42)

Notable Quotes & Memorable Moments

• Christy, on recidivism:
  "We get people like Carlos every now and then that they do the baby steps, and then they go backwards." (03:13)
• Dave on Responsibility:
  "Be a grown up, bro." (05:07)
• Carlos, on lifestyle temptations:
  "The brand new Royal Caribbean ship is docking next month. And I’m like, oh, we got to check that out." (05:10)
• Dave, humorously exasperated:
  "Oh my gosh, dude. All right, you’re giving me hemorrhoids, Carlos." (05:14)
• Christy, on parenting by example:
  "What are you setting for them, the example? ... I'd rather set an example of, hey, we have a level of limits and boundaries." (08:30)
• Closing Encouragement:
  "I want peace for you. I just can't want it more than you want it for yourself." – Dave Ramsey (09:35)

Timestamps for Key Segments

• 00:06 – Carlos recounts reaching debt freedom pre-pandemic
• 00:45–01:33 – Hosts grill Carlos about how he slipped back into debt
• 01:35–02:40 – Carlos details how spending spiraled post-COVID
• 02:42–03:12 – Hosts clarify current debts and income
• 03:29–04:03 – Carlos and Christy discuss peace of mind vs. current situation
• 04:10–05:18 – Dave and Christy emphasize urgency, mock excuses; Carlos confesses to lifestyle inflation
• 05:24–06:02 – Carlos discloses job situation due to government shutdown, insight on living on one income
• 07:05–08:30 – Dave and Christy challenge Carlos to mature financially and think of their children’s example
• 08:30–09:26 – Christy urges behavioral change, details practical steps forward
• 09:35 – Dave wraps up with a final appeal for peace and discipline

Episode Takeaway

Even with a high income, discipline and living below your means are the only routes to lasting financial peace. Succumbing to lifestyle inflation and “treat yourself” mentality can undo years of careful planning. Dave and Christy remind listeners that peace with money stems not from how much you make, but from how intentionally you manage—and limit—what you spend.

Action steps, according to the hosts:

• Cut up the credit cards, pay off debt aggressively (can be done in 2–3 months)
• Live on significantly less than you make—practice restraint, not deprivation
• Model good financial behavior for your children
• Don’t confuse a high income with permission to spend impulsively
• “Devise a plan and follow it”—be the grownups in your own financial story

For more budgeting help, the hosts recommend using the EveryDollar app (no ad segment in this summary).