- A man named Mike from Philadelphia sought assistance from Dave Ramsey’s show to overcome his massive debt burden.
- Dave Ramsey learned from Mike that he owed a staggering $451,000 in student and home loans.
- This call, originally from 2019, went viral on TikTok when it was reposted, generating new discussions.
A man named Mike reached out to Dave Ramsey’s show for financial guidance as he found himself burdened with $451,000 in debt while earning just $40,000 annually. The exchange between Mike and Ramsey on TikTok stunned viewers.
Mike, a 31-year-old from Philadelphia, called “The Ramsey Show” seeking help to pay off his debts.
Out of the total debt, $252,000 was in the form of student loans and $185,000 was due to a home loan. Mike explained that he came across Ramsey’s show via a friend’s recommendation and desperately needed advice.
“I’m completely lost on where to begin,” Mike expressed his predicament.
The TikTok clip received attention, reaching an audience of 3.2 million. Although the clip is from a 2019 episode of Ramsey’s show, no additional information regarding Mike’s progress with his debt has since been shared.
During the call, Mike informed Ramsey that he worked in law enforcement, prompting Ramsey to question how he ended up with such substantial debt. Mike disclosed that he initially pursued a finance degree at a private university under his parents’ suggestion but later switched to criminal justice and even pursued a master’s degree. Unfortunately, the master’s degree did not improve his employment prospects as he had hoped.
Ramsey emphasized the importance of evaluating the debt-to-income ratio, referring to it as the “shovel to hole” ratio. He explained that individuals must consider the debt they are in relative to their income in order to escape it.
Dave Ramsey is widely recognized for his financial advice and is an American radio host and evangelical Christian. However, he has faced controversies, including allegations in 2021 that his company terminated employees for engaging in premarital sex. Furthermore, Ramsey has recently been involved in a $150 million lawsuit filed by listeners who claim they were deceived by a timeshare exit company he endorsed.
Some individuals question Ramsey’s credibility as a financial advisor, perceiving him more as a preacher than an expert on money. Nonetheless, he remains a trusted figure in the realm of personal finance. A man shared with Insider that Ramsey’s advice helped him eliminate $38,000 in car debt.
In the TikTok clip, Mike discussed his non-affluent background, explaining that he was the first in his family to attend college. He also mentioned living with his girlfriend and her daughter, and how he impulsively purchased the house following his father’s passing.
Ramsey informed Mike that he was in a difficult situation and needed to make significant changes. He criticized Mike’s two poor financial decisions, which he believed were influenced by his parents, stating that he must no longer base his financial choices on their opinions.
“You can love your parents, but you can no longer let their influence dictate your financial decisions. They’re only causing you harm,” Ramsey remarked. He added that Mike’s debt was so overwhelming that he felt suffocated.
Ramsey proposed two options to Mike: either marrying his girlfriend and jointly confronting the debt or separating and selling the house due to their inability to afford it under the current circumstances. However, Ramsey cautioned that financial issues often lead to divorce, so Mike needed to proceed cautiously if he chose the first option.
Ramsey advised Mike to focus on increasing his income to have more funds to allocate towards debt repayment.
“You need that money because you’re broke,” Ramsey bluntly stated. He described Mike’s situation as a “mathematical nightmare,” highlighting that the interest on his student loans alone could cause the outstanding balance to double.
Ramsey concluded by emphasizing the necessity of making sacrifices and temporarily forgoing a comfortable lifestyle in order to escape the financial hole they created. TikTok users expressed astonishment at Mike’s debt and blamed his parents for pressuring him into the mortgage and university decisions.
“The parental pressure is so unfair. Mike seems like a genuinely good person who is trying to please everyone, but he’s the one carrying the weight,” one user empathized.
Others were shocked by the exorbitant cost of college education in the United States and advocated for free education, similar to many other countries.
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