“You Got Screwed Twice!”

Summary

Podcast Summary: The Ramsey Show Highlights – “You Got Screwed Twice!”

Episode Overview In the December 26, 2024 episode titled “You Got Screwed Twice!” of The Ramsey Show Highlights, hosted by the Ramsey Network, listeners are presented with a compelling discussion on personal debt management and the challenges of identity theft. The episode features a distressed caller seeking advice on overwhelming debt exacerbated by fraudulent activities in her personal life. Experts Dave Ramsey and Ken Coleman provide actionable strategies and motivational support to navigate and overcome financial setbacks.

Caller’s Predicament: Debt and Identity Theft ([00:06] - [02:58]) The episode opens with a caller expressing feelings of drowning in debt. She reveals that she has a $10,000 personal loan, which she obtained to consolidate credit card debt. The caller discloses that she was in an abusive relationship where her ex-partner illicitly accumulated approximately $6,000 to $7,000 in credit card debt under her name without her knowledge. Upon discovering the fraud, she contacted the banks but was met with indifferent responses, leaving her no choice but to take out the personal loan to cover the unauthorized debt.

Dave Ramsey probes deeper into the situation:

“You got screwed twice. Basically, you don't owe that money. You didn't owe that money.” ([02:06])

He clarifies the distinction between authorized and unauthorized use of credit:

“If you hand someone your card and say, go use it, you're liable for that. If someone opens up a card in your name without your permission, that's identity theft.” ([02:37])

Assessing the Financial Impact and Income ([03:05] - [05:04]) The caller shares her financial details:

• Current income: $45,000, increasing to $55,000 in five months
• Occupation: Child abuse investigator for the state
• Additional debt: $7,000 in student loans, eligible for forgiveness after sustained state employment

Dave Ramsey emphasizes the manageability of the debt:

“$17,000 makes you debt-free, hun.” ([03:52])

He encourages the caller to increase her income and adopt a stringent budget to expedite debt repayment, suggesting that the total debt is surmountable within months rather than years.

Expert Advice: Strategies for Debt Elimination ([05:02] - [07:08]) Ken Coleman supplements Dave’s advice by recommending practical steps to boost income and reduce debt:

“Sell stuff. You can work on the weekends... you have around two grand worth of stuff you could sell.” ([05:02])

He underscores the attainability of the $17,000 debt elimination goal by advocating for:

• Selling personal belongings
• Securing additional part-time work
• Avoiding unnecessary expenditures such as dining out or vacations

Dave reiterates the importance of not viewing oneself as a victim but rather taking proactive measures:

“Roll up your sleeves, hun. Get on a detailed tight budget and get as many extra hours as you can.” ([05:18])

Mindset and Emotional Resilience ([07:08] - [07:58]) Ken Coleman addresses the emotional toll of debt, emphasizing a shift in mindset:

“This is all a mindset because of what's happened to you and the way it happened. Learn from it. But get a quick victory.” ([07:08])

He encourages the caller to achieve small victories to rebuild confidence and reinforce that the debt is a temporary and manageable obstacle:

“Get a quick victory. Like, happen to this. Don't let life happen to you anymore.” ([07:58])

Final Takeaways and Resources Concluding the episode, Dave Ramsey provides listeners with crucial advice on preventing similar financial mishaps:

“Don't let some banker tell you that. That's bull crap. And you need somebody in your corner with identity theft protection like Zander Insurance.” ([07:58])

He highlights the importance of identity theft protection and reinforces the principles of diligent budgeting through resources like the EveryDollar app.

Key Insights and Lessons

1. Distinguishing Legitimate Debt from Fraudulent Debt: Understanding the difference between debts incurred with and without personal authorization is crucial in addressing financial liabilities accurately.
2. Proactive Income Enhancement: Increasing income through side jobs or selling assets can significantly expedite debt repayment.
3. Emotional Management: Viewing debt as a manageable challenge rather than an insurmountable burden is essential for effective financial recovery.
4. Preventative Measures: Utilizing identity theft protection services can safeguard against fraudulent financial activities in the future.

Conclusion “You Got Screwed Twice!” serves as a powerful reminder of the complexities surrounding personal debt and identity theft. Through empathetic guidance and practical solutions, Dave Ramsey and Ken Coleman empower listeners to take control of their financial situations, emphasizing that with determination and strategic planning, debt can indeed be overcome.

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free today.

[Caller]

Yeah, I just need help. I feel like I'm drowning in debt right now.

[Dave Ramsey]

Okay, tell me about it.

[Caller]

So I have a. Around 10,000 in a personal loan because I recently consolidated my credit cards. I had. I was in a abuse relationship, and after I got out, I found out that they probably racked up close to 6 or $7,000 in credit card debt in my name without me knowing about it.

[Dave Ramsey]

And you paid that off after.

[Caller]

After contacting the banks and all that? They said there's nothing they could do about it.

[Dave Ramsey]

Well, of course there's something they can do about it. Let me stop. Let me stop. Let's find out where we are today. Did you take. Because you believe those lying, thieving bankers, did you borrow money to pay off debt that was not yours because it was done with identity theft?

[Caller]

Basically, yeah. Because they said not basically, honey.

[Dave Ramsey]

That's what you did. You went and borrowed $10,000 and paid off debt that this criminal, fraudulently using your name, opened up without your permission, and you paid that debt off.

[Caller]

Yeah. Yes, I had. I paid 2,000 of it off.

[Dave Ramsey]

No, I'm talking about the $10,000 you borrowed. That's what you used it for. You paid off the credit cards with it.

[Caller]

Yeah, I paid off the credit cards. And then.

[Dave Ramsey]

Is there any debt outstanding that the criminal did that you haven't paid yet?

[Caller]

No, dad.

[Dave Ramsey]

Comet, Son, you got screwed twice. Basically, you don't owe that money. You didn't owe that money. When someone fraudulently. If I take your name and go open up a credit card in your name, you don't owe the money. That's called a criminal act. It's fraud. That's what identity theft is.

[Caller]

I had the credit cards since I. Since. So, I mean, I followed your show.

[Dave Ramsey]

And I thought you said they opened up the card in your name without your permission.

[Caller]

Yeah. Basically what happened was I had them as, like, the emergency fund, never used them. And then without. Really?

[Dave Ramsey]

That's different than opening up a card. They took your card that you opened up and used it without your permission. That's different. You understand?

[Caller]

Yeah.

[Dave Ramsey]

If you hand Ken Coleman your card and say, go use it, you're liable for that. If Ken Coleman goes and opens up a card in your name without your permission, fraudulently signing your signature, that's identity theft. You're not liable for that. You understand the difference?

[Caller]

Yes.

[Dave Ramsey]

So you handed the fiance your card and they went bonkers with your card.

[Caller]

So I didn't even give Them the card that was, that's the biggest thing.

[Dave Ramsey]

Is honey, they used a card that was open in your name. That's the point. Right?

[Caller]

Yeah.

[Dave Ramsey]

Okay. All right, so you owe $10,000 and what do you make on?

[Caller]

So right Now I make 45 and then in five months I'll be making 55.

[Dave Ramsey]

What do you do?

[Caller]

So I am a child abuse investigator for the state.

[Dave Ramsey]

That's an irony. Okay, yeah.

[Caller]

And then I have around 7,000 student loans through a. But I'm in the government program right now where if I work for the state long enough, they fully pay those off.

[Dave Ramsey]

You know, you need to pay them off. You know, it's only $7,000. It takes 10 years to do this. So $17,000 makes you debt free, hun, Is that right?

[Caller]

Yeah.

[Dave Ramsey]

Oh lord, go get six extra jobs and be debt free by like spring. You're not working but 40 hours.

[Caller]

So I work around with my job now is, it's a lot of on call and so most days I'm home around 9, 10 o'clock just because of the nature of the job.

[Dave Ramsey]

So you're working 50 hours a week for. You're working 50, 60 hours a week for 55 grand?

[Caller]

Yeah.

[Dave Ramsey]

No you're not. You're on call. When you're on call, you can drive Uber.

[Caller]

So our on call works. If we have to initiate a report, we have to immediately drop everything drive to initiate that report. And there's a lot of times I'm spending 12 hours in a hospital on my on call days with a kid waiting for a reliever social worker to come and refill it. And the other idea is.

[Dave Ramsey]

All right, so you, what you gotta do is you gotta increase your income. You only need $17,000. This should not be overwhelming.

[Ken Coleman]

Yeah, sell stuff.

[Dave Ramsey]

It's not that much money you got to have.

[Ken Coleman]

I bet you got two grand worth of stuff you could sell. You can work on the weekends, you're on call days, whatever those are, you're not working seven days a week. So this is a season where you.

[Dave Ramsey]

Got it, you clean up the mess.

[Ken Coleman]

17 grand is very doable, but you're.

[Dave Ramsey]

Not a victim, okay? You handed her the card, you knew this was going on. The only thing you're a victim of is being engaged to an idiot. And you're not the first one that's ever happened to. So you know, roll up your sleeves, hun. Get on a detailed tight budget and get as many extra hours as you can, as much extra income. Don't go out to eat, don't Talk about vacations. Talk to your supervisor about, I'm not working 80 hours. You're going to have to have some kind of a different plan here, because 80 hours for 55 grand don't cut it. The work you're doing is very important work, and it's very good work. You're taking care of kids who have been messed up. Thank you for doing that. You got a good heart. But also, you cannot sit and be a victim of 17,000 bucks, man. I mean, seriously, let me help you with this. $2,000 a month, and you are done in eight months. That's all you need. And you make 55. So this is very doable. You should be done with this in six months and then have zero debt. But this debt represents all this pain in your life. And so it's like. Feels bigger than it is. Mathematically, it's tiny. Emotionally, it's huge. And that's why you're. You know, you act like it's some kind of big monster. It's 17 grand. And, you know, no, I'm not staying in student loan debt for 10 freaking years for $7,000 worth of forgiveness that probably isn't going to actually come because you're probably not going to cross every T and dot every I. A high percentage of people that run that game don't end up with the forgiveness at the end. So you don't want to get in that game. You want to get in the game of, I'm going to knock this out, put it all in the rearview mirror, move forward in health and with. With enthusiasm.

[Ken Coleman]

Yeah, I can feel the stupid tax. We've all done stupid, every one of us, and that's what you're feeling. You know, this is a breakup. She. She took your card, and. And, you know, and so you've created this narrative. The way you led the call is that you have been victimized. And. And in all reality, you have it. And I think Dave is absolutely right. The more you can quickly go, I've got to get a victory. And I would, if I were you, I would go sell something today if I could sell it for 500 bucks or if I could sell five things for a thousand, get a quick win, and put $1,000 down on this debt. You need something to get those shoulders back a little bit. And there's nothing wrong with you. You aren't drowning in this. This is all a mindset because of what's happened to you and the way it happened. Learn from it. But get a quick victory. Like, happen to this. Don't let life happen to you anymore.

[Dave Ramsey]

So quick lesson folks. You need to have Zander Insurance's identity theft in place. I do, because they will take over an account that is actually identity theft. His wasn't, but actually as identity theft, they'll take it over and they'll deal with the banks. The banks will lie to you and tell you you're responsible for identity theft. You're not when someone else misuses your name. That is criminal fraud. And you are not liable for a debt when a thief uses your name to open up an account. Don't let some banker tell you that. That's bull crap. And you need somebody in your corner with identity theft protection like Zander Insurance. And that's why we've endorsed them for God, a decade plus since this identity theft thing became a thing. Create your free every dollar budget today. The simplest way to budget for your life.