A move to Miami was supposed to be a fresh start. Instead, it turned into a financial squeeze that left one young family living paycheck to paycheck on a $6,000 monthly income.
Ethan, an active-duty military service member, called into “The Ramsey Show” recently looking for help after what he described as putting himself “in a hole” over the past six months. Between a $10,000 relocation, a $3,000 monthly rent payment and a $900 car payment, the math simply stopped working.
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“I more or less have put myself in a hole over the last six months or so,” Ethan said. “Made some dumb decisions and have locked myself in a financial bind.”
The move to Miami cost about $10,000, which he borrowed from multiple sources, including family members. Not long after settling in, he bought his wife a 2025 Jeep Grand Cherokee. The monthly payment: about $900. The balance: roughly $50,000.
One of the problems is that the SUV is worth about $30,000, leaving the family around $20,000 upside down.
Although Ethan earns about $6,000 a month, and his wife stays home with their 8-month-old son, their rent runs about $3,000 a month, roughly half their take-home pay.
Co-host Jade Warshaw was straightforward. “Making $100,000 a year is not what it once was,” he said. “You get this salary and you’re like, ‘Yes, I’m making six figures.’ And it feels like it’s going to be a way. That money dwindles very quickly, which is what you’re experiencing.”
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Even though Ethan receives a housing allowance through the military, Warshaw pointed out that once everything is combined, rent still eats up about 50% of the household income. “There is no extra. There’s nothing left,” she said.
That’s why the hosts focused on two big changes: housing and the car.
“This is the time to do the sacrifice,” Warshaw said, noting their child is still young and more flexible.
The second issue is the car. Because they owe $50,000 on a vehicle worth about $30,000, the hosts suggested going to a credit union before missing payments and taking out a loan for the $20,000 difference. Then sell the SUV and replace it with a modest $5,000 vehicle.
“The only thing better than paying off $50,000 is paying off $20,000,” Warshaw said.
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That move would eliminate the $900 monthly car payment and free up breathing room in the budget. It’s painful, but it shrinks the problem fast.
Co-host John Delony also challenged a deeper assumption. “Y’all have put yourself in a position where I don’t believe you can afford right now to uphold this value that you’re holding,” he said, referring to the stay-at-home setup. “Y’all have a huge mess that can be solved in a year and two years of everybody pitching in and going full bore.”
In Ethan’s case, the path forward isn’t glamorous. It likely means downsizing, selling the car and attacking the debt with intensity. But as the hosts said, the numbers don’t lie, and pretending six figures automatically equals comfort can result in hard lessons.
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