A 36-year-old caller told “The Ramsey Show” recently that despite earning nearly $2 million over 10 years, he’s now drowning in $800,000 of debt — including credit cards, loans and two heavily mortgaged homes.
The man, who works in home remodeling, said a series of bad investments and business setbacks left him broke. Host Dave Ramsey didn’t mince words “You haven’t figured out the problem yet,” he told the caller during the live show.
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From Success To Struggle
The caller explained that he had turned his life around after overcoming addiction in 2016 and dedicating himself to his faith. Over the next few years, he bought, renovated and sold houses — and occasionally invested in stocks. But by 2022, things spiraled out of control.
He told Ramsey that his remodeling business suffered losses after a company he subcontracted for went bankrupt. “Everything backfired all at the same time,” the man said. Equipment losses, credit card spending to cover staff mistakes, and vacations piled up to nearly $800,000 in debt.
“I made close to $2 million in the past 10 years,” he said, “but now I’m trying to sell one house worth about $520,000 and still owe $450,000 on it.”
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Vacations, Loans And A Stalled Business
Ramsey, joined by co-host John Delony, pressed for answers on how the caller accumulated so much debt. The man admitted to mixing personal and business expenses, including vacations that cost “$150,000 to $200,000 over the years.”
When asked how he’s currently managing, the caller said he has been relying on credit cards for food and bills since losing steady income. His wife, who stays home with their children, isn’t employed outside the home. “Barely,” he said, when asked if he had any income.
“You need to go get some jobs. No vacations, no eating out. You’ve been running around in circles, man. You’re going to have to get focused and go run these jobs,” Ramsey said bluntly.
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Debt Is The Symptom
Delony then asked when someone in that much debt should consider bankruptcy. Ramsey, who built his financial coaching career on helping people avoid it, said the caller’s problem wasn’t just financial mismanagement but deeper behavioral issues.
“Debt is not the problem — it’s the symptom,” Ramsey said. “If it got wiped tomorrow, he’d go figure out another way to borrow money.” He added that unless the caller changes his spending habits and work ethic, bankruptcy would only delay the inevitable.
Ramsey urged him to work nonstop, stop spending and rebuild his remodeling business under his own contractor’s license. “You’re now Mr. Frugal — Captain Frugal McDougall,” he said, encouraging him to live on the bare minimum until he recovers.
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