Dave Ramsey Tells $110K-A-Year Couple With $120K Debt, ‘You’re Broke’—And Says ‘Sell The Truck, Sell The Jeep, Sell The Boat’
- Personal Finance
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- 5 minutes read
Mounting debt can make even a six-figure income feel like it’s disappearing overnight.
That’s the position Rachel from Columbia, South Carolina, found herself in when she called “The Ramsey Show” after falling behind on her bills.
She said that a difficult year of health problems and anxiety forced her to leave an in-office medical billing job, switch to working from home, and take a pay cut. “I am absolutely drowning,” she told hosts Dave Ramsey and George Kamel.
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A Pay Cut And A Growing Debt Load
Rachel said she previously earned about $45,000 a year and now makes roughly $40,000. Her husband earns about $70,000 annually, bringing their combined income close to $110,000. Despite that income, she said they are carrying about $120,000 in non-mortgage debt.
The total includes roughly $38,000 on a truck, about $41,000 on a Jeep, nearly $15,000 on a boat, around $10,000 in student loans, $6,000 in medical bills, about $2,000 in credit card balances, and roughly $8,000 in IRS debt tied to her husband.
Ramsey focused on spending rather than income changes. He told the couple that the numbers pointed to behavior, not earnings, adding bluntly that “you’re broke,” despite what their income might suggest.
“So your $5,000 pay cut didn’t really cause you any trouble,” Ramsey said.
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The focus shifted to the vehicles and the boat. “What stopped you guys thus far from getting rid of these things that are crushing you?” Kamel asked.
Rachel pointed to the boat before Ramsey cut her off.
“You want an easy button. I don’t have one, honey,” Ramsey said. “The only button I got is the one that’ll work,”
Situations like Rachel’s, where solid income is weighed down by debt and competing priorities, often benefit from structured financial guidance. Domain Money works with professionals earning $100,000 or more a year, offering CFP professional-led financial planning.
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