The Ramsey Show: "Crisis Doesn’t Wait for You to Get Your Financial Act Together"

Release Date: June 11, 2025
Host: Dave Ramsey
Co-host: George Camel

Overview:
In this episode of The Ramsey Show, host Dave Ramsey and co-host George Camel delve into a variety of financial crises callers are facing. From ethical dilemmas in family finances to strategies for managing debt and making informed investment decisions, the episode offers comprehensive advice aimed at helping listeners regain control of their financial lives. Notable discussions include handling familial obligations that may lead to financial jeopardy, navigating debt collection lawsuits, and making prudent investment choices post-inheritance.

1. Ethical Dilemmas in Family Finances

Caller: Sarah from Los Angeles
Timestamp: [00:50 – 08:12]

Situation:
Sarah seeks advice on her mother-in-law's plan to purchase a house in Sarah and her husband's names to shield her from IRS debts. They are currently living together in a rented home.

Key Points & Advice:

• Long-term Commitment: Dave Ramsey emphasizes that accepting such an arrangement ties Sarah and her husband to their mother-in-law indefinitely, potentially hindering her’s independence and the family’s financial stability.

  "This is a permanent solution to a temporary problem... your mother in law needs the dignity of building a sustainable life and working her way through the debt." ([05:31])

• Integrity and Ethics: Ramsey strongly advises against participating in what he perceives as deceptive practices to hide debts.

  "It's a lack of integrity. It's unethical." ([06:19])

• Alternative Solutions: Instead of purchasing a house, Ramsey suggests directly addressing and reducing the mother-in-law’s debt.

2. Handling Debt Collection Lawsuits

Caller: Emily from Bristol, Virginia
Timestamp: [10:33 – 18:43]

Situation:
Emily is facing a lawsuit over $6,067.63 in credit card debt and seeks advice on avoiding court.

Key Points & Advice:

• Debt Settlement: Ramsey recommends negotiating a lump-sum payment, suggesting that debt buyers typically pay less for bad debt and may settle for a portion of the owed amount.

  "A debt buyer will buy bad debt... somewhere around $300 is what they paid for this. So our experience is that probably $1,500 cash will settle this." ([14:52])

• Negotiation Tactics: He advises being firm and emotionally detached during negotiations, keeping personal information private, and aiming for a settlement that is manageable.

  "You're dealing with the enemy here. This is a War. And they're good at what they do." ([16:53])

• Long-term Financial Health: Beyond settling the immediate debt, Ramsey underscores the importance of addressing underlying financial mismanagement to prevent recurring debt issues.

  "Your credit card debt lawsuit is not going to do it, because it's not the problem. It's the symptom." ([17:27])

3. Tithing on Inherited Investments

Caller: Lori from Atlanta
Timestamp: [22:34 – 30:12]

Situation:
Lori inquires whether she should tithe on money she inherited, part of which she used to fund her daughter's college.

Key Points & Advice:

• Principle of Tithing: Ramsey outlines that tithing should be based on the net increase or the return on investment, not the principal amount.

  "You only tithe on the increase, technically speaking." ([25:49])

• Calculating Tithe: Using a hypothetical 12% return on a $44,000 investment growth, Lori is guided to tithe approximately $520.

  "And so 10% of 5,000 is 500 bucks. So, you would tithe. That's the math." ([27:12])

• Spiritual and Emotional Support: Emphasizes that the spirit of generosity is more important than the precise mathematical calculation, encouraging heartfelt giving.

  "Generosity is the answer... Your identity includes generosity." ([28:33])

4. Saving for Fiancé’s Student Debt vs. Investing

Caller: Matthew from Atlanta
Timestamp: [32:34 – 34:16]

Situation:
Matthew plans to marry his fiance in two years. He has completed Baby Step Three and is considering whether to save for her $50,000 student debt or begin investing.

Key Points & Advice:

• Prioritizing Debt Repayment: Ramsey advises saving to pay off her debt as soon as possible after marriage to start their life debt-free.

  "You say for her debt... Why? So you can just the day you get home from the honeymoon, you pay it off." ([32:53])

• Annual Savings Goal: With Matthew saving approximately $1,500 monthly, Ramsey suggests that they are on track to accumulate nearly $15,000 annually, which will significantly reduce her debt burden over the two-year period.

  "You're bringing home 15 or 20k a month... You'll be millionaires in about 20 minutes." (paraphrased from Ramsey's enthusiasm for debt-free progress)

5. Navigating Divorce and Financial Advisors

Caller: Courtney from Columbia, South Carolina
Timestamp: [34:16 – 41:01]

Situation:
Courtney is going through a divorce after 38 years of marriage. She is advised by her attorney to withdraw funds from her 403(b) retirement account to cover legal fees.

Key Points & Advice:

• Assessing Financial Needs: Ramsey questions the necessity of withdrawing large sums from retirement accounts due to the hefty taxes and penalties involved.

  "Every dollar we pull out of the 403 is going to have taxes on it, have a penalty on it." ([38:28])

• Living Within Means: He encourages Courtney to sustain herself using her pension and manage expenses without tapping into retirement funds unless absolutely necessary.

  "I want you to go get, create some income with your pension and live on that." ([38:48])

• Strategic Fund Allocation: Ramsey recommends setting aside a portion (e.g., $30,000) to handle immediate legal costs while keeping retirement savings intact.

  "This is a War... Get a lump sum for cash. That fixes it." ([39:16])

• Evaluating Financial Advisor Fit: Ramsey advises Courtney to consider whether her financial advisor is supportive and respectful or if their reaction (e.g., shaming) indicates a poor fit.

  "If you think she was shaming you and being condescending, then, yes, I would leave her." ([40:49])

6. Effective Budgeting for High-Income Households

Caller: Greg from Columbia, South Carolina
Timestamp: [44:18 – 52:28]

Situation:
Greg and his wife, earning a combined income of approximately $135,000 annually, are overwhelmed by debt totaling around $47,000. They have two children in private schools and are struggling to manage their budget effectively despite using the EveryDollar app.

Key Points & Advice:

• Comprehensive Budgeting: Ramsey emphasizes the importance of allocating every dollar before the month begins to ensure no leftover funds that can lead to overspending.

  "Spend every dollar before it comes in. That's why we named it that." ([50:47])

• Debt Snowball Method: Encourages focusing on paying off the smallest debts first while maintaining minimum payments on larger ones to gain momentum.

  "Pay minimum payments on everything but the smallest, and attack the smallest with a vengeance." ([50:38])

• Adjusting Budget Allocations: Suggests revising the grocery budget from $600 to $1,200 to reflect their actual needs, preventing financial strain and ensuring budget adherence.

  "You're not spending and see if there's any money left. You do it all on paper on the app." ([51:43])

• Mutual Agreement and Commitment: Highlights the necessity for both partners to agree on budget allocations and enforce disciplined spending to achieve financial goals.

  "You're doing it wrong. That's where your problem is." ([50:47])

7. Testimonials: Journey to Debt-Free Success

Guests: Wade and Carissa from Pine Grove, Pennsylvania
Timestamp: [75:00 – 85:40]

Situation:
Wade and Carissa share their experience of paying off $291,700 in debt over eight years and eleven months while increasing their household income from $108,000 to $205,000 annually.

Key Points & Story Highlights:

• Initial Struggles and Transformation: The couple began their journey with significant debt, utilizing Dave Ramsey’s Baby Steps to systematically eliminate their liabilities.

  "We paid off about 72,000 in the last 12 months." ([109:02])

• Adapting to Challenges: Faced with job loss during the COVID-19 pandemic, they intensified their debt repayment efforts, demonstrating resilience and commitment.

  "Carissa actually had a job loss... we stepped it up." ([110:34])

• Achieving Financial Freedom: Through disciplined budgeting and strategic financial planning, they successfully eliminated their mortgage and other debts, leading to increased financial stability and opportunities for wealth building.

  "You're free, I'm free. That's a whole different kind of life." ([109:56])

• Encouragement for Listeners: Their story serves as an inspiration, illustrating that with dedication and the right financial strategies, attaining financial peace is achievable.

  "You have to decide... walk daily with the prince of peace, Christ Jesus." ([113:07])

8. Real Estate Investment Insights

Caller: Katherine from Augusta, Georgia
Timestamp: [86:44 – 92:01]

Situation:
Katherine and her husband own two homes. Their first home was converted into a rental property, but due to negative experiences with tenants and property maintenance issues, they are contemplating whether to keep or sell the investment property.

Key Points & Advice:

• Sunk Cost Analysis: Ramsey advises assessing whether they would choose to purchase the property again if they hadn’t already invested in it. Given their negative experiences, he recommends selling.

  "If you did not own this house and you had $60,000... Would you do that? No." ([88:52])

• Handling Bad Tenants: Emphasizes that landlords must be proactive in dealing with troublesome tenants to protect their investments.

  "Throw them out. Get after it." ([90:56])

• Relinquishing Problematic Investments: Suggests that if a rental property is causing more stress and financial strain than benefits, selling is the prudent choice.

  "Sell the house because it's in a bad... less than desirable neighborhood." ([89:42])

9. Purchasing a Van vs. Using Emergency Funds

Caller: Michelle from Lubbock, Texas
Timestamp: [96:44 – 105:21]

Situation:
Michelle seeks guidance on whether to use her emergency fund to purchase a van for family and daycare needs or wait and save further.

Key Points & Advice:

• Distinguishing Needs from Wants: Ramsey clarifies that purchasing a vehicle does not constitute an emergency and encourages saving before making such expenditures to avoid compromising financial security.

  "It's not an emergency." ([119:47])

• Budget-Friendly Solutions: Recommends saving more before making the purchase or opting for a less expensive vehicle to minimize financial strain.

  "Or maybe save up five and get an $8,000 van." ([121:36])

• Long-Term Financial Stability: Advises maintaining the emergency fund to protect against unforeseen circumstances, ensuring that major purchases do not leave the family vulnerable.

  "Don't leave you vulnerable because that's what you would be." ([123:00])

10. Final Advice and Closing Remarks

Timestamp: [105:21 – End]

Closing Segments:

• Building Wealth through Smart Financial Choices: Dave Ramsey urges listeners to adopt disciplined budgeting and strategic debt repayment to achieve financial peace and build lasting wealth.

• Inspiring Success Stories: Highlighting guests like Wade and Carissa serves to motivate listeners that financial freedom is attainable with perseverance and adherence to proven financial principles.

• Encouraging Responsible Investments: Ramsey consistently advocates for informed and ethical financial decisions, discouraging risky investments such as high-leverage real estate ventures that do not generate profit.

Notable Quotes:

• "Don't wait around until you're in your 30s to start living life and start, you know, doing adult things." ([113:01])
• "The tortoise always wins." ([60:27])
• "Term life insurance is meant to do one thing... replace your income if something were to happen to you." ([67:55])

Conclusion:
This episode of The Ramsey Show underscores the importance of ethical financial decisions, disciplined budgeting, and proactive debt management. Through real-life examples and practical advice, Dave Ramsey equips listeners with the tools and mindset necessary to navigate financial crises effectively, ensuring long-term stability and wealth building.