What the Crap Have Y'all Been Doing?

Summary

Summary of "What the Crap Have Y'all Been Doing?" — The Ramsey Show Highlights

Release Date: February 17, 2025
Host: Ramsey Network
Duration: Under 10 minutes

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Introduction: Kevin’s Overwhelming Debt

The episode begins with a listener, Kevin (referred to as C), reaching out to The Ramsey Show to discuss his substantial debt woes. Kevin outlines his financial predicament, revealing a total debt of $650,000, encompassing his mortgage, personal loans, and auto loans.

Kevin (C) [00:06]: "I'm in $650,000 in debt, and that includes mortgage, personal loans, auto loans."

Detailed Breakdown of Kevin’s Debt

Kevin provides a meticulous breakdown of his debt, clarifying the distribution across various categories:

• Mortgage Debt:
  Kevin owes approximately $477,000 on his mortgage.

  Kevin (C) [00:21]: "The mortgage. I owe about 477,000."

• Auto Loans:
  He has $62,000 in auto loans for two cars.

  Kevin (C) [00:37]: "For two cars."

• Credit Card Debt:
  His personal credit card debt stands at around $25,000.

  Kevin (C) [00:40]: "Credit cards... my cards are about. Oh, geez. I would say 25,000."

• Personal and Small Business Loans:
  He mentions having $25,000 in personal loans and additional small business loans, though he hasn't fully detailed this segment.

  Kevin (C) [03:24]: "Well, me and my wife work for my family business... I want to work more."

Kevin’s Family and Financial Dynamics

Kevin discusses his family situation, highlighting that he and his wife make financial decisions together. Their combined income is $130,000 per year. Despite both working for the family business, his wife primarily manages the home, especially after the birth of their daughter seven months prior.

Kevin (C) [02:18]: "We make 130."

Kevin expresses feelings of guilt about wanting to work more hours to alleviate their financial strain, worrying it might make him seem selfish and take him away from home life.

Kevin (C) [03:24]: "I want to work more. But I feel like I'm a little selfish for wanting to work a lot more than 40 hours."

Emotional and Psychological Toll

The significant debt has taken an emotional toll on both Kevin and his wife. Kevin admits to having difficulty connecting his emotions to his financial situation, which he believes has contributed to their current predicament.

Kevin (C) [03:11]: "I have a hard time connecting emotions to it, and that's probably why I'm in this mess."

His wife is described as being "stressed to the moon and back," signaling the intense pressure the family is under.

Kevin (C) [03:03]: "She's stressed to the moon and back."

Expert Advice from The Ramsey Show Team

The Ramsey Show team, consisting of Speakers A and B, respond with direct and candid advice aimed at addressing Kevin’s financial challenges.

1. Assessing the Mortgage Situation:

   Speaker A criticizes the high mortgage payment relative to their income and suggests drastic measures to alleviate financial strain.

   Speaker A [04:15]: "If I were you guys, I would sell the house. I would sell the cars. I would be working 80 hours a week and I would clean this up."

2. Reducing Expenses:

   Speaker B emphasizes the importance of minimizing expenses to gain financial breathing room, even if it means making significant lifestyle changes.

   Speaker B [05:04]: "Well, but again, if you can get out, even if it's a break even. She's right. You saved yourself 3,700 a month."

3. Cutting Up Credit Cards:

   Speaker A advises Kevin to eliminate credit card debt immediately by cutting up all credit cards to prevent further incurring of debt.

   Speaker A [05:11]: "So I would cut up the credit cards tonight. You have to have keep this feeling of I'm done, I'm done, I'm done, I'm done."

4. Implementing Ramsey’s Financial Peace University:

   The team encourages Kevin and his wife to enroll in Financial Peace University, a nine-lesson course designed to guide them through their financial recovery.

   Speaker A [05:24]: "Taylor's gonna pick up and we're give you guys financial Peace University... and just implement these steps. It's gonna be hard, but worth it."

Conclusion: A Path Forward

The Ramsey Show provides Kevin with a clear, albeit challenging, roadmap to financial recovery. The primary recommendations include:

• Selling the Home and Cars: To drastically reduce monthly obligations.
• Drastically Increasing Income: By working more hours to generate additional funds.
• Eliminating Credit Card Debt: As a critical first step in regaining financial control.
• Enrolling in Financial Peace University: To receive structured guidance and support.

The hosts emphasize that while the journey to financial stability will be difficult, it is achievable with commitment and the right strategies.

Notable Quotes

• Speaker A [05:24]: "It's gonna be hard, but worth it."
• Kevin (C) [03:16]: "I have a hard time connecting emotions to it, and that's probably why I'm in this mess."
• Speaker B [05:04]: "You saved yourself 3,700 a month."

Final Thoughts

This episode of The Ramsey Show Highlights serves as a stark reminder of the dangers of excessive debt and the importance of proactive financial management. Through Kevin's story, listeners gain insight into the complexities of personal finance and the emotional challenges that accompany financial distress. The show's practical advice aims to empower individuals to take decisive action towards achieving financial peace.

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Note: This summary is based on the transcript provided and focuses on the core content of Kevin’s financial situation and the expert advice offered by The Ramsey Show team.

Transcript

[A]

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[B]

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[C]

I'm in $650,000 in debt, and that includes mortgage, personal loans, auto loans.

[B]

Can you break that down for us real quick? How much is the mortgage debt?

[C]

The mortgage. I owe about 477,000.

[B]

Okay. And now break down the rest of the debt for us.

[C]

Cars is about 62,000.

[B]

For two cars.

[C]

For two cars.

[B]

Okay. Keep going.

[C]

Credit. Credit cards. Just me. I haven't done. My wife hasn't taken hers or brokers down yet, but my cards are about. Oh, geez. I would say 25,000.

[A]

Okay. Personal loans.

[C]

Personal loans, small business. I would say 25,000.

[A]

Okay.

[C]

And then the rest in small loans, like a firm and stuff like that.

[A]

Yeah. Which would. Which would equal what?

[C]

I haven't broken that down yet, but it's pretty much the rest of my. My debt.

[B]

And so. And so how much debt? So that makes up the whole 655, if I'm doing quick math. Am I right?

[C]

Yeah, I guess.

[B]

How much does your. I'm sorry, I'm trying to move us along. Kevin, how much debt does your wife have?

[C]

Guessing about 25,000.

[B]

And the way you're talking about credit cards.

[C]

Credit cards and personal.

[A]

Okay.

[B]

And you guys have separate finances. It sounds like we don't.

[C]

We actually make these decisions together, which is okay.

[B]

You threw me off when you said her debt.

[A]

Well, yeah, yeah, yeah, yeah. But you guys have like. Yeah, it's different either way.

[B]

So we got 655, plus her 25. I'm trying to give Rachel.

[A]

Okay. How much do you guys make year? Kevin?

[C]

We make 130.

[A]

Kevin. What the crap have y'all been doing?

[C]

I know.

[A]

Oh, man.

[C]

I'm sick of it.

[A]

Just living. Just living. Wow.

[C]

Yeah.

[A]

You know, and normal. And let me say that, Kevin. I mean, this. This literally is America, Mike. This is normal. You're racking up, you know, credit card debts, two brand new cars. I mean, this is. This is. This is it. Okay, so what's gotten you to the point? You said, I'm sick of it. What has. What's kind of. What's kind of brought. What's brought it to a head that even caused you to call today?

[C]

We had a little girl seven months ago.

[A]

Oh, wow. That'll do it. That'll do it. And how is your wife feeling right now?

[C]

She's stressed to the moon and back.

[A]

Yep. Yep.

[B]

Where are you at emotionally? Where are you at?

[C]

I have a hard time connecting emotions to it, and that's probably why I'm in this mess.

[B]

Okay, so what's the, what's the real need? We know what the problem is. What can we help you with today?

[C]

Well, I, me and my wife work for my family business and we work 40 hours a week. Well, I do. She stays at home with our little girl most of the time. But I want to work more. But I feel like I'm a little selfish for wanting to work a lot more than 40 hours.

[B]

Okay, Kevin.

[C]

And not being home.

[B]

All right, I'm jumping in because we got about two minutes with you or less. You're not being selfish. In fact, I would say you're being selfish if you're not working 80 hours a week. And is your wife collecting a salary? You said we both work for the family business. She getting paid to be at home.

[C]

We, we collect salary. She works from home greater.

[B]

So great. So you need to be working like crazy.

[A]

How much is, how much is your mortgage payment a month?

[C]

3700.

[A]

Okay. Is it, that's, I mean that's getting up to what, 40% of your take home pay?

[B]

Yeah.

[C]

Yeah.

[A]

Okay. So here's what I do, Kevin. So this is me real quick. This is going to be very painful to implement. It's much easier for me to sell you all this. I, I would, I would put the house in the market. I would sell it. This is way, way out of bounds, um, that you have too much house. It's taking 40%. And then think about all these other payments. You guys are barely able to eat. I'm like, this is take, this is taking up so much. So if I were you guys, I, I would sell the house. I would sell the cars. I would be working 80 hours a week and I would clean this up. That's what I would do. I mean, I, I would, Would you get any equity from the home if you guys sold.

[C]

There's about 30,000 in the house, which I feel like is all fees for putting it on the market anyways.

[B]

Well, but again, if you can get out, even if it's a break even. She's right. You saved yourself 3, $700 a month.

[A]

Which you, because your income, the ratio of what you guys need to pay for rent and mortgage needs to be about half of where you're at because your house poor. I'm like, you guys, you know, so I, I would cut up the credit cards tonight. You have to have keep this feeling of I'm done, I'm done, I'm done, I'm done. And you, you, you have to get dead out of your life. You have to stop. And I would be selling everything in sight, including those cars. And get your head above water. You guys have, you know, a three to four year journey here, but you, you can do this. Hold on the line. Taylor's gonna pick up and we're give you guys financial Peace University, which is our nine lesson course. And you guys watch this together and just implement these steps. It's gonna be hard, but worth it.

[B]

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