Transcript

Dave Ramsey (0:04)

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Rachel Cruze (0:13)

Normal is broke and common sense is weird. So we're here to help you transform your life. From the Ramsey network in the Fairwinds Credit union studio, this is the Ramsey show, and I'm Rachel Cruz hosting this hour with Jade Warshaw. And we're answering your questions. So give us a call at 880-882-55225, and we'll be talking about your life, your money, career, relationships, anything and everything. We are here for you. So let's start off in Boston with Miguel. Hi. Welcome to the show.

Caller (0:47)

Hey, how's it going?

Rachel Cruze (0:49)

We're doing well. How can we help today?

Caller (0:52)

So today I wanted to ask. So I have a business, and I'm. I'm contemplating on what I should do next because I'm. I'm also 147,000 in debt, and that's including credit, student loans, and car payment.

Rachel Cruze (1:05)

Okay.

Caller (1:06)

So I want to know if I should sell a business. Thought I think I get value for and then start fresh and use that lump sum of money to attack, like, the debt.

Jade Warshaw (1:16)

Mm. What kind of business are you in?

Caller (1:20)

It's a printing business. So merchandise.

Jade Warshaw (1:23)

What would cause you. What would cause you to sell the business versus using profit from the business to pay down the debt?

Caller (1:34)

I think it's just because I'll collect a lump sum of money and, like, the business right now is kind of, you know, fluctuating. It's up and down, and I'm also alone in it. So it's a lot of my time where I feel like if I could change the.

Rachel Cruze (1:49)

If you didn't have debt, Miguel, would you stay in this business or would you still want out?

Caller (1:55)

Yeah.

Rachel Cruze (1:56)

You would stay?

Caller (1:57)

I'll potentially say the business. Yeah.

Jade Warshaw (1:59)

Summary

The Ramsey Show Podcast Summary

Episode: “I’m $147k In Debt And Only Make $1,500 A Month”
Date: November 20, 2025
Hosts: Rachel Cruze, Jade Warshaw (occasionally Dave Ramsey joins)
Podcast: The Ramsey Show (Ramsey Network)

Episode Overview

This episode showcases real-life callers who face a spectrum of financial challenges, from crushing debt and low income to navigating marriage and money, windfalls, retirement concerns, and success stories about becoming debt free. Hosts Rachel Cruze and Jade Warshaw guide listeners through practical steps to tackle money problems, emphasizing accountability, teamwork in families, and the basic Ramsey principles: budgeting, increasing income, living below your means, and eschewing debt.

The emotional realities of making radical financial changes under stress is a running theme. Listeners are reminded that, regardless of life circumstances, there is hope and a path toward financial freedom through intentional living.

Key Discussion Points & Insights

1. Caller: Miguel – $147k in Debt, Earns $1,500/mo

(Start: 00:13)

Miguel owns a merchandise printing business, working 50–60 hours/week but only nets $1,500/month.
He considers selling the business (est. value: $30,000) to address $147,000 debt (mostly personal, $8k business).
Hosts urge Miguel NOT to make the printing business his sole income source—it’s a “side hustle” level job at those earnings, not sustainable full-time.
Recommendations:
- Get full-time employment: Use the business as a side gig.
- Reduce overhead: Consider moving out of the downtown location and going “order-only” from a smaller space.
- Set a timeline (6-9 months): Try to grow the business while working another job; reevaluate and sell equipment if needed.
- Avoid further debt, and avoid making life-changing decisions in a panic.
Quote (Jade Warshaw, 03:29):
“You’re not on a living wage right now. ... This eats like a part-time side hustle when we look at the income that it’s bringing.”

2. Caller: Cody – Medical Debt & Marriage Tension

(10:41)

Cody and his wife, with four young kids, face $35,000 in medical debt (plus $7,000 credit card debt) after health crises.
The marriage is strained by the wife’s spending habits as income increases.
The couple previously had $20,000 in savings (from a house sale) but now only $5,000 remains.
Insight:
- Cody is handling finances separately, “feeding” his wife money for groceries; host calls this “a red flag.”
- Need for joint budgeting and collective conversations.
- Emotional root causes—maybe tied to wife’s history or change of role—should be explored.
Quote (Rachel Cruze, 16:30):
“You’re not her dad. ... You need to come to her and say, ‘I’m freaking out over here, will you please sit down with me?’ Make it about you and what you want for the outcome to be, which is being on the same page.”

3. Caller: Beto – 17 Years Old, First Car Regret

(23:12)

Beto, 17, bought an $8,000 Honda Accord, owes $400/month, but faces $700/month insurance bill due to age.
Works full time at MMA gym, recently got a new $20/hr job at an orthopedic clinic.
Wants to start a car detailing side business, but only has $1,000 in savings.
Advice:
- Double up work temporarily to cover car/insurance.
- Don’t start the detailing business until car is paid off and he’s financially stable.
- Price out the business thoroughly first.
- Stay out of debt; learn this lesson now while the stakes are lower.
Quote (Rachel Cruze, 24:04):
“You’re a smart, hard-working guy and I think you’re going to do fantastic. But I’m kind of glad you’re getting a taste of [the weight of debt] at $8,000 for a stupid car loan instead of a $40,000 business loan.”

4. Caller: Ian – 20, $23k/Month Profit TikTok Shop, Should He Do ‘Semester at Sea’?

(34:23)

Brilliant 20-year-old with lucrative affiliate marketing gig ($23k/month profit, $180k sales in a month).
Considering pausing his business for a once-in-a-lifetime Semester at Sea program (free via scholarship).
Worries about losing business momentum vs. life experience.
Hosts’ consensus:
GO on Semester at Sea! “Affiliate marketing’s not going anywhere.” Money can be earned later, but the experience window is unique at this age.
Quote (Jade Warshaw, 37:56):
“You’re going to have to convince me not to go, because I am—this is a once-in-a-lifetime.”

5. Caller: Sonya – Nearing Retirement, Multiple Properties

(39:52)

Sonya, about to retire, sits on 5 properties (3 rental, 1 for brother, plus primary), $1.3M in real estate, $500k in retirement accounts, $130k cash.
Asks if she should sell a paid-for rental to pay off her primary.
Hosts: Absolutely—live completely debt-free.
She’s a “baby steps millionaire”—incredible job!

6. Caller: Gabriel – 72-Year-Old Widow Mother Facing Shortfall

(44:16)

Gabriel’s mother has $1.1M house nearly paid off but little to no retirement, living on Social Security.
Relies on children to cover ongoing expenses.
Discussion:
- Emotionally tough, but math is clear: She needs to sell the house, buy a modest condo, invest remainder for income.
- Siblings need to unite on a plan; if not, they’d continue to subsidize her indefinitely.
Quote (Jade Warshaw, 50:12):
“The math is not emotional. She doesn’t have any money...and she’s healthy. She has a lot of years ahead!”

7. Caller: Alex – Debt-Free, Wants Tiny Home, No Credit Score

(54:48)

28-year-old, debt-free, wants to buy a $40–50k tiny home for “pseudo-independence” (on parents’ property); doesn’t qualify for a mortgage due to no credit and the house size.
Advice: Wait, save up, and pay cash.
Don’t take out a personal loan for a depreciating asset with no resale.

8. Caller: Elijah – 22, Should He Get a Master’s for Small Pay Bump?

(59:50)

Would get an additional 2% pay bump as a police officer with a master’s, but would require $18,000 in new loans.
Advice: Not worth the cost. Don’t borrow; $4k/year is negligible compared to lifelong debt.
Quote (Rachel Cruze, 61:59):
“The percentage-wise is not big, Elijah. Maybe a $4,000 difference. You could do that in two months with a side gig.”

9. SUCCESS Story: Christopher – Paid off $63k Debt in 11 Months

(65:20)

From Rhode Island, went from $72k to $110k/year (with overtime), sold a nearly-new car, slashed expenses.
Motivation: “Working 70+ hours/week for years isn’t sustainable; I was burnt out.”
Recommends ruthless action: “What do you have to lose? Only your debt.”
Sold car, drove a $2,000 used car, “swallowed his pride,” closed 42 credit cards.

Quote (Rachel Cruze, 69:19):
“The ego hates going backwards—it takes a level of humility to say what I was presenting to the world...is actually less, but mathematically better.”
Debt-Free Scream at 74:22

10. SUCCESS Story: Steve & Tanya – Paid Off $279k Including Mortgage in 6 Years 10 Months

(105:35)

Remarried couple, “started over in their mid-50s”, focused intently on tithing, budgeting, and laser-discipline.
Went from $135k to $252k income, paid off ALL debt (house, tractor, consumer loans).
Chose to “live different” from everyone else: bought thrift clothes, rarely ate out, lived frugally, and talked about money a lot.
Quote (Dave Ramsey, 112:01): “It’s never too late. You can turn things around. ... My motivation was that I want to retire before I’m 65.”
Debt-Free Scream at 113:57

Notable Quotes by Timestamp

On Debt, Business, & Living Below Means

(03:29) Jade Warshaw: “You’re not on a living wage right now. ... This eats like a part-time side hustle when we look at the income that it’s bringing.”
(16:30) Rachel Cruze: “You’re not her dad. ... You need to come to her and say, ‘I’m freaking out over here, will you please sit down with me?’”
(24:04) Rachel Cruze (to Beto): “You’re a smart, hard-working guy... But I’m kind of glad you’re getting a taste of [the pain of debt] at $8,000 for a stupid car loan instead of a $40,000 business loan.”

On Marriage & Emotional Roots of Spending

(19:28) Jade Warshaw: “There’s a reason this is off-putting for her... there’s always something beneath and you’ve got to be a professional detective.”
(50:12) Jade Warshaw: “The math is not emotional. She doesn’t have any money. ... she has a lot of years ahead of her.”

On Regret & Risk Avoidance

(37:56) Jade Warshaw: “[Semester at Sea] is kind of a once-in-a-lifetime. All that stuff’s going to be waiting for you.”
(61:59) Rachel Cruze (to Elijah): “The percentage-wise is not big. ... You could do that in two months with a side gig.”

On Humility & Mindset Shift

(69:19) Rachel Cruze: “The ego hates going backwards—it takes a level of humility to say what I was presenting to the world...is actually less, but mathematically better.”
(112:01) Dave Ramsey: “It’s never too late. You can turn things around. ... My motivation was that I want to retire before I’m 65.”

Other Memorable Moments (with Timestamps)

Debt-Free Screams:
- Christopher (74:22): “Three, two, one— I’M DEBT FREE!”
- Steve & Tanya (113:57): “Three, two, one—WE’RE DEBT FREE!”
On Experience over Earnings:
- (36:15) Rachel Cruze: “There’s a specific time in life you can never get back. You’ll learn so much from living the life experience.”
On Facing Major Life Transitions (divorce, retirement, widowhood):
- Hosts continually stress the need to run the numbers, get practical help, and swallow pride to do the right thing for your long-term security.

Timestamps for Key Segments

| Topic | Timestamp | |-------------------------------------------|-------------| | Miguel – $147k in Debt, Low Income | 00:13 | | Cody – Marriage Financial Stress | 10:41 | | Beto – Car Loan & Exploding Expenses | 23:12 | | Ian – Semester at Sea vs. High Earnings | 34:23 | | Sonya – Should I Sell Property? | 39:52 | | Gabriel – Senior Mom w/ $1M House, No $ | 44:16 | | Alex – Tiny House, No Mortgage | 54:48 | | Elijah – College, Masters, Cost/Benefit | 59:50 | | Christopher – Debt Free Scream | 65:20/74:22 | | Steve & Tanya – Debt Free Story | 105:35/113:57|

Episode Takeaways

DO get real with your numbers; DO NOT hide from financial truth.
If your business is sinking you, get a job and try to run it part-time.
In couples, budget TOGETHER—finance is not a “parent/child” relationship.
Don’t let ego or emotion derail smart financial moves: humility wins.
It’s never too late to change your financial destiny—even after big setbacks or in your 70s.
Prioritize experiences and relationships over dogged pursuit of wealth; life is about more than balance sheets.
Celebrate all victories, big and small—and pass along hope that financial freedom is within reach for everyone.

For more resources, budgeting tools, or to ask your own question, visit www.ramseysolutions.com.