The Ramsey Show: "Stop Trying To Borrow Your Way Into Freedom"

Date: September 26, 2025
Host: Dave Ramsey with co-host Rachel Cruze

Episode Overview

This episode of The Ramsey Show, hosted by Dave Ramsey and Rachel Cruze, continues the core Ramsey message: you can build wealth and take control of your money, no matter your past mistakes. The central theme is rejecting the myth that borrowing (e.g., using credit cards for rewards, parent loans for college, over-leveraging on mortgages) can ever buy you financial freedom. Instead, Dave and Rachel double down on a cash-based, debt-free approach to life, and field a range of live calls that illustrate the dangers, complications, and false promises of debt.

Key Discussion Points & Insights

1. Credit Cards, Rewards, and Business Spending

[00:43 – 08:09]

• Caller: Cooper, a contractor from Texas, asks if he should use a business credit card for rewards (2% cash back) on large material purchases.

• Dave's Advice:

  • Rewards are insignificant compared to real profits.
  • Discussion on how credit card perks (even if mathematically marginally positive) are a distraction from building a solid business.
  • "You’re taking your eye off the ball. Don’t take your eye off the ball." (Dave, 01:57)
  • Warns about the psychology of using credit instead of cash, leading potentially to increased spending.

• Rachel's Addition:

  • At Ramsey Solutions, they use only cash/debit—even for company travel, sometimes with literal envelopes of cash.
  • Research shows people spend more on credit due to emotional detachment; likely true in business in subtle ways.

• Dave's Notable Quote:

  • "78% of airline miles are never redeemed." (Dave, 04:17)
  • He debunks the myth of airline/reward programs: "I’ve never interviewed a millionaire that said, 'Dave, the way we got here was airline miles.'" (Dave, 05:25)
  • "Debt is normal. Be weird." (Dave, 09:01)

2. Being House Poor & The Cost of Over-Leverage

[13:43 – 19:56]

• Caller: Andrew, recently bought a house that consumes about 40% of his take-home income. Wants to know if he should aggressively pay the mortgage or focus on 401(k).

• Dave’s Hard Truth:

  • When your house payment is 40%+ of your take-home, you're "house poor."
  • “Sell your stupid house... Unless your income will rise dramatically, this will stunt your financial growth.” (Dave, 14:48)
  • Emphasizes learning from the mistake (“how you got here”) but focusing on the way out.
  • Rachel and Dave agree: Change careers for more income or sell the house. Don’t limp along for a decade.

• Rachel:

  • Notes urgency led to a poor buying decision; reminds listeners not to buy under desperation.

3. Car Debt and Freedom at a Young Age

[22:19 – 31:19]

• Caller: Philip, 21, wants to move out but owns a $20k Dodge Charger he loves but hates paying for.

• Discussion:

  • Dave: "One of the things we teach is called the baby steps..." (Dave, 25:49)
  • Pay off all debt except your house using smallest-to-largest snowball. In Philip's case, consider either aggressively paying off the car or selling while he can avoid negative equity.
  • Rachel: "Go get a great Honda Civic and live your best life, Philip! Don’t let this car be the thing that drains your savings." (Rachel, 27:18)
  • Both agree: Be debt free and independent by January—car is negotiable, but adulting is not.

• Life Lesson:

  • Your life changes when you move out and become fully independent; better money and career decisions follow.

4. Merging Finances with Disparate Net Worths & Prenups

[34:32 – 40:11]

• Caller: Susan, age 53, $2M net worth, marrying someone with $250k and a lump sum of cash but no investments.

• Dave’s Principles:

  • Only time he recommends a prenup is with "a huge difference" in assets, mainly to protect each other from “crazy relatives.”
  • Encourages combining finances fully for a successful marriage and wealth-building.
  • "Real love and maturity is planning so you aren't a burden on your kids. Real love would say, 'I choose to be responsible...'" (Dave, 63:11)
  • Rachel probes about why fiancé is behind; Susan explains he poured money into a failed business.

5. Crushing Student Loans under Special Situations

[45:07 – 53:20]

• Caller: Joe, faced with $235k remaining student loans and disruptions from legal battles/child custody issues.

• Dave & Rachel’s Approach:

  • “Push pause” until life stabilizes (baby on the way, planning a move, pending legal fees).
  • Once settled, narrow focus: "Beat bio dad and Sallie Mae."
  • On budgeting disagreements/guilt: “You bring your stuff into the marriage and you work it together.” (Dave, 52:12)
  • "You make stupid decisions with money. It's not who you are, just what you've done." (Rachel, 52:50)

6. Family Financial Obligations & the Bible

[54:25 – 64:30]

• Question: Is there a biblical/theological mandate for children to take care of parents financially if parents haven’t planned for retirement?

• Dave’s Response:

  • Cites 1 Timothy 5:8: "Your own household is your spouse and children, not your parents."
  • “There’s no moral or ethical obligation for your kids to take care of you if you didn’t act wisely... The Bible does not demand carte blanche support of parents in all situations.”
  • Rachel: Most people can't even cover a $400 emergency, let alone support their parents.

7. Should You Use Savings to Fund Home Renovations (vs. Mortgage Paydown)?

[65:47 – 73:42]

• Caller: Tom, newly moved to a bigger home, $85k in brokerage account, wife wants a new basement bathroom, he wants to pay down mortgage or refinance.

• Advice:

  • Rachel: "Just be for a year. There’s no urgency."
  • Both agree: Use $85k to pay down mortgage now, cash flow the bathroom with their $260k household income over the next year.

8. Early Retirement, Lake Property, and Large Withdrawals

[76:19 – 84:55]

• Caller: Chris, 50, retiring from federal law enforcement, $1.4M in Thrift Savings Plan (TSP), wants to withdraw $300k to buy land by a lake.

• Discussion:

  • Dave warns: withdrawing 30% of nest egg for "just dirt" (no house) may mean delayed gratification with no real use for years; resort property values are volatile.
  • Rachel points out his diligence; he could rebuild the withdrawal quickly with post-retirement income.
  • Dave's Final Take: "Probably would do it, but move toward building sooner rather than later."

9. Living Above Means, Inheritance, and the Urge to Splurge

[86:26 – 91:01]

• Caller: Alexander, considering buying a $30k Harley Davidson while dipping into savings to support $1k/mo expenses over income.

• Dave pulls no punches:

  • "You haven't learned to live on less than you make. No, I would not do it."
  • Encourages using inheritance to pay off mortgage rather than splurging.

10. Parent PLUS Loans: When Loans Ruin Relationships

[91:14 – 104:22]

• Caller: Holly, daughter won’t pay back Parent PLUS student loans as agreed, has cut off communication.

• Dave’s Tough Love:

  • "You put her in debt to you. Very bad idea."
  • "These things (money) are not independent of relationships; the borrower is slave to the lender."
  • Dave urges parents: never borrow for your kids’ college. Refutes the idea of 'moral obligation' to pay for others’ mistakes.

• Rachel: Reframes the issue as a parenting (not student loan) problem—parents must set boundaries and not fund unwise college choices.

11. Debt-Free Scream — Success Story

[106:36 – 115:58]

• Guests: Brad & Amanda from Pennsylvania, paid off $130,000 in 20 months (mostly student loans/HELOC), now have a baby and dropped income from $170k to $120k.

• Notable Moments:

  • Amanda was inspired by a dramatic YouTube clip of Dave.
  • "We chose to be comfortable over being convenient, so now we feel comfortable." (Amanda, 112:35)
  • Sacrificed time together; Amanda worked up to 4 days before birth. Emphasized home-cooked meals & creating friction in spending.
  • Sold their nice car for a 20-year-old van labeled: “Dave Ramsey makes me drive this.”

Memorable Quotes

• Dave Ramsey:
  • “78% of the airline miles are never redeemed. That makes your little theory useless.” (04:17)
  • “Sell your stupid house. It’s way too big and too expensive… this is going to stunt your financial growth.” (14:48)
  • “You haven’t learned to live on less than you make... No, I would not [buy the motorcycle].” (91:01)
  • “You put [your daughter] in debt to you. Very bad idea. The borrower is slave to the lender.” (93:03)
• Rachel Cruze:
  • “Go get a great Honda Civic and live your best life, Philip. Don’t let this car be the thing that drains your savings.” (27:18)
  • “Your net worth isn’t your self-worth. Just because you made dumb decisions with money doesn’t mean it’s who you are.” (52:50)
  • “You can’t even cover a $400 emergency, let alone support your parents.” (59:37)
  • "We chose to be comfortable over being convenient." (112:35)
• Amanda (Debt-Free Screamer):
  • “It’s amazing how much we stopped spending when we got rid of credit cards.” (114:46)
  • “You have to believe it’s possible.” (115:00)

Important Timestamps (MM:SS)

• 00:43 – Cooper asks about credit cards for business rewards
• 04:17 – Airline miles myth busting
• 14:48 – "Sell your stupid house" moment
• 22:29 – Philip’s car debt vs. independence dilemma
• 34:32 – Merging finances, age/asset disparity, prenup advice
• 45:07 – Confronting student loans while life is in chaos
• 54:25 – Parenting/adult children & financial obligations: the biblical view
• 65:47 – Renovation vs. mortgage paydown debate ("just be for a year")
• 76:19 – Early retirement, lake property withdrawal debate
• 86:26 – $30k Harley while living beyond means and draining inheritance
• 91:14 – Parent PLUS loan, broken agreement, and family rupture
• 106:36 – Debt-free scream: $130k in 20 months

Takeaways for Listeners

• Debt is not a tool for prosperity—it’s a trap.
• Be extremely wary of making family financial agreements that involve debt.
• Focus your energy on earning, saving, and budgeting, not chasing rewards.
• Move quickly out of financial mistakes instead of compounding them; sometimes that means selling a beloved possession or even your house.
• Adulting means independence—living on your own, managing your own budget, and making peace with living below your means.
• Major net worth disparities in marriage may warrant practical legal steps (prenups) but do not replace the need for united, combined finances and goals.
• Generosity and compassion toward family don’t mean enabling bad financial behavior.
• Success is possible—real stories show massive debt can be conquered with sacrifice, teamwork, and focus.
• Every spending decision gets easier (and you save more) when you create “friction” with cash and fewer ways to mindlessly tap money.

This episode of The Ramsey Show is a full-circle tour of why "borrowing your way to freedom" is not only impossible—it's often disastrous for your finances, your family, and your future. Real freedom, as Dave and Rachel continually urge, comes through discipline, focus, and living a debt-free, intentional life.