"What The Crap Did You Buy?"

Summary

Overview: In this episode of The Ramsey Show Highlights, host A and panelists (B, C, and D) take a deep dive into the challenges of managing overwhelming debt, misguided financial decisions, and the pitfalls of get‐rich‐quick schemes. The conversation centers on the financial struggles of caller Shonda (B), who juggles credit card debt, failed business ventures in credit repair and real estate investments, and the difficult choices of balancing family responsibilities with career prospects. The discussion provides hard-hitting advice on rethinking priorities, avoiding expensive mistakes, and building a stable foundation for the future.

Key Discussion Points and Insights:

1. Caller’s Financial Predicament (00:09 – 00:30) • B introduces her situation: a single parent with around $185,000 in combined personal and business credit card debt. • The debt stems from personal loss (the death of her brother in 2020) and the subsequent slow start of her credit repair business. • Host A immediately challenges B by asking, “What the crap did you buy, Shonda?” setting a direct tone for the discussion.

2. The Struggle of the Failing Business (00:37 – 01:23) • B shares that her business, which focuses on credit repair, did not become successful and currently earns only about $600 a month. • The conversation reveals that instead of generating sufficient revenue to cover expenses, B was borrowing money to manage daily bills. • A questions the viability of the credit repair business, noting its nature as a “get rich quick” scheme and drawing a parallel to other poor investments.

3. Diversified Debts and Financial Overextension (01:31 – 03:00) • Aside from the exorbitant credit card debt, B also details having student loans (approximately $36,000) and a car loan ($25,000), in addition to owning a home. • The panel probes into the specifics of these obligations, highlighting that while some debts (like credit cards) can be negotiated, others (such as student loans) are less flexible. • B voices her dilemma of debt management amidst family responsibilities: a 10-year-old daughter and an older daughter heading to college soon, making it nearly impossible to take on additional jobs.

4. Personal Reflection and Advice on Prioritizing Career Over Quick Fixes (03:27 – 05:41) • Host A reflects on past financial hardships, revealing personal story details involving a bankruptcy event shared with Sharon, and draws on the painful lessons learned during that period. • A stresses that B’s reliance on unstable business ventures (like credit repair and home flipping) reflects a pattern of chasing get-rich-quick schemes instead of investing energy into a steady career. • Notable Quote (05:41): B concurring with A, “Correct,” when A suggests that with a steady career path using her criminal justice degree, she could likely be earning at least $100,000 annually.

5. Offered Solutions and Steps Towards Financial Recovery (05:42 – 07:31) • Host A recommends concrete steps to start recovery:

   • Sell the expensive car and replace it with a more affordable option.
   • Leverage her criminal justice background to secure a better-paying position.
   • Stop making payments on credit cards and student loans temporarily to ease immediate financial pressure, noting that credit cards can often settle for much less over time. • A encourages shifting focus from accumulating more debt through impractical investments to building a solid career foundation. • Notable Quote (07:30): A emphasizes, “Credit cards will settle for pennies on the dollar,” highlighting the potential to reduce credit card debt significantly through settlement.

Notable Quotes and Memorable Moments:

• [00:03] A introduces the sponsor with a direct call-out to the necessity of identity theft protection in today’s financial climate. • [00:30] A asks, “185,000 in credit card debt. What the crap did you buy, Shonda?” • [05:41] In a reflective moment, A warns, “If instead you had taken that same amount of energy and poured it into your career, you'd probably be making 100k right now.” • [07:28] A reinforces financial advice: “The best ID theft protection is from Zander,” blending business promotion with fiscal responsibility tips.

Timestamps for Important Segments: • 00:03 – 00:09: Sponsor message and initial intro. • 00:09 – 00:30: Caller shares her financial crisis. • 00:30 – 01:23: Discussion on the failing credit repair business and its viability. • 01:31 – 03:00: Breakdown of various debts (credit cards, car loan, student loans) and family considerations. • 03:27 – 05:41: Reflection on past financial failures; advice to invest in career stability. • 05:42 – 07:31: Concrete steps and advice on debt reduction and budget restructuring.

Conclusion: The episode serves as a cautionary tale about the consequences of chasing quick financial fixes instead of investing in sustainable career paths. Host A uses both personal experience and tough love to guide B through the complexity of managing multiple debts without sacrificing family stability. Listeners are encouraged to adopt a disciplined approach to budgeting, embrace slow but steady career advancement, and avoid the lure of get-rich-quick schemes. The overall tone remains empathetic yet firm, urging immediate practical steps such as downsizing expenses and rethinking financial priorities to pave the way toward a more secure future.

Transcript

[A]

Brought to you by Zander Insurance. Identity theft protection isn't a luxury in today's world. It's a necessity.

[B]

Get [e-mail] I called in to get some financial advice. I'm a single parent. I have about 185,000 in credit card debt, but it's from personal and business combined together.

[A]

185,000 in credit card debt. What the crap did you buy, Shonda?

[B]

Okay, so I lost my brother in 2020, and so it was hard for me to go back to work, so I started. I also started a business. And starting up the business, it started kind of slow, and so I was using money to basically pay for bills.

[A]

Did the business become successful?

[B]

It did not. It's still slow.

[A]

So it failed? Yes. Are you still doing it?

[B]

Yes.

[A]

And what kind of money is it? What kind of money does it make.

[B]

Baby? $600 a month.

[A]

$8,000 a month?

[B]

No. $600.

[A]

$600. Okay, that's. Yeah, that's different. Okay. What is the business.

[B]

Is credit repair.

[A]

And did what. How do you spend money on credit repair?

[B]

I'm spending money on it.

[A]

I mean, you said like. So you mean you're. You're just. You were borrowing money to eat because you weren't making a living?

[B]

Yes, yes. And not only that, I was investing in different things with the money as well. Like basically, I try to do the. The flipping the homes and I was pulling money off the cars to do that. So it was like I was losing money trying to do different investments.

[C]

What are you doing now?

[B]

Paying my bills with you. Work in security.

[A]

And what do you make?

[B]

40,000.

[A]

What's the most money you ever made in your life in a year?

[B]

60,000.

[D]

Okay. All right.

[B]

I have a degree in criminal justice.

[D]

Okay. All right.

[C]

Is this all the debt you have, Shonda? Are the credit cards. Are there any student loans or car loans?

[B]

I have student loans and a car loan. Yes. And I have a home.

[A]

Okay, what do you owe on the car?

[B]

The car? About 25,000.

[D]

Okay.

[A]

And what do you owe on your student loans?

[B]

36,000.

[C]

And all this is on top of the 185, correct?

[B]

Yes. So my thing was I was thinking about bankruptcy, but I was like, let me get some. But I don't see no other way out. And look for the jobs. That's not. I can't really do that because I have a younger daughter that's 10, and I have an older daughter that start college in August, so she wouldn't be able to help as much with my child. If I did decide to go and get a second job. So. Yeah.

[D]

Okay.

[A]

Well, you have a car that you can't afford, and student loans are. Student loans are not bankruptible.

[B]

Oh, yeah, okay.

[A]

So they're going to stay there no matter what happens. And I mean, you could turn the car in in the bankruptcy, and if you're going to file bankruptcy, please God, turn the car in. Because it's just, you make 40,000, you don't need a $25,000 car, period. There's no planet that that works on. And so I remember being scared to death 35 years ago when Sharon and I lost everything. Shonda. And I was overwhelmed with the debt and the collectors calling and everything else. And the only thing I did right in that period of time was I really wanted to dig in and figure out what I had done that set me up for this, what mistakes I made, what philosophies or things I believe that were lies. Okay. And you told me two or three different things that are Internet, TikTok, get rich quick schemes. Even your credit repair thing was a get rich quick scheme. It's not. It's not even a viable business. We don't do it because it's not viable. Can't make enough to pay somebody to do it here, or I'd be doing it. And the irony is you're doing credit repair. That's an irony. That's ridiculous. And so the, you know, so, so. But you've fallen for these things, trying to get to get ahead rather than developing a steady career path with your criminal justice degree and background. That moves you up, up, up, up, up to where you start making some really good money. If during the time that you tried all these things that were get rich quick things, if instead you had taken that same amount of energy and poured it into your career, you'd probably be making 100k right now.

[B]

Correct.

[A]

And that's what I. If you've got to go through this kind of hell and I'm sorry you're there, for goodness sakes, learn the lessons from the hell. That's what Sharon and I said. If we're going to go through this, we're going to learn what was broken in Dave that set us up for this fall. We looked at that and said, okay, why did I fall for building a house of cards? What was driving inside of me? What was broken? It was a spiritual walk in my faith, my God walk that allowed me to repair the insides as we were restarting our lives after a bankruptcy. So if I'm in Your shoes. I'm going to talk about selling my car and getting out of that. And I'm going to talk about what I can do in the criminal justice field to add to my income and move up in my career. And just don't pay the credit cards and don't pay the student loans for a while. And let's see if you could get your budget set up right, even if it doesn't look like where you can pay it all today. I don't see how you can pay it with where you are today. But where you are today is not your destiny. Your destiny is to make more. And so if you just don't pay them and they don't ever get around to suing you and the student loans just stack up and the credit cards just stack up and go bad, cut them all up, get rid of the stupid car payment, get you a hooptie to get back and forth to work and get out of this dadgum $600 car pay. You got ripped off on that thing too, I'm positive. And then just let your stuff just go bad. And then as you start making some money, you can start working, you know, pay off the student loan first and then start.

[C]

Well, usually they'll settle, especially with the credit cards.

[A]

Credit cards will settle for pennies on the dollar.

[C]

Yep, yep.

[A]

I mean, you could go through and settle these credit cards over the next five years and, you know, end up getting completely out of debt for 25 or $30,000. But you gotta. You're. That's a long way from where you are right now. So hang on. We're gonna sign you up for Financial Peace University, and for every dollar our budgeting, we're gonna pay for it to help you get started, because I remember being scared and. But you gotta start aiming at something steady, steady growth. Be the tortoise, don't be the hare. The best ID theft protection is from Zander. They not only monitor, they help you get your life back. Go to Zander.com to learn more.