A recent caller to “The Ramsey Show” shocked hosts George Kamel and Jade Warshaw by revealing that he and his wife bring in $40,000 to $45,000 every month, yet feel overwhelmed by debt, financial pressure, and out-of-control expenses.
Despite High Income, Debt Keeps Piling Up
“We just have a lot of expenses every month, and our finances just kind of got out of control,” said the caller, Dustin. He detailed having two massive car payments: $1,600 per month for a Tesla and $800 for a truck. Both vehicles are deeply underwater, especially the Tesla, which he said could only fetch around $30,000 while they still owe $55,000.
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Warshaw responded directly: “You’re very concerned with the month-to-month payment. When you’re doing very well, like you are, it’s very easy to go, ‘I can afford the payment.’ But you’re never looking at the big picture amount.”
In addition to the car loans, Dustin and his wife are still paying off a second mortgage, $1,800 a month on a home they no longer even own. They owe $156,000 on that debt alone. Their current home carries a mortgage of $800,000.
They also have $19,000 remaining on a credit card, after paying off two others totaling $27,000. On top of that, they pay $3,000 a month for their three children to attend a private Christian school.
“Do we need to pull the kids out of private school?” Kamel asked him. “That’s kind of what I’m here for,” Dustin responded, indicating that he’s not shying away from difficult choices.
Kamel left the decision up to the caller but noted, “At this state of your personal finances, we can’t afford private school. And that is a ridiculous thing to say, talking to a guy who makes $500,000 a year.”
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Kamel pointed out that even after accounting for $3,000 in private school tuition and $2,400 in car payments, the couple’s spending didn’t add up. With an income of $45,000 per month, he questioned where the rest was going and stressed that the real problem was their financial behavior, not their earnings.
The couple has three rental properties, but only one generates profit. The other two are break-even and are being rented out to friends. Kamel suggested they consider selling the properties to simplify their lives and throw the money toward their debt.
He also emphasized the need for structure. “Pull up your bank statements to see where it’s all going. If it’s not food, utilities, shelter, transportation, insurance or minimum debt payments—it goes away,” he said.
“You guys are going to be astounded at what you’re spending money on,” Warshaw added.
Dustin admitted they had already started making changes, including using savings to pay down credit cards. They had around $4,000 left in savings and were considering selling the Tesla, even if it meant saving up to cover the negative equity.
Kamel’s final advice: “We’re about to be living like we’re poor, because we are poor, while making half a million dollars. It’s as insane as it sounds.”
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This article Earning $45,000/Mo And Under Financial Stress? This Ramsey Caller Has $2,400 Car Payments, $3,000 Private Schools, And A Massive Mortgage originally appeared on Benzinga.com
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