A caller from Chicago named Shonda recently phoned in to “The Ramsey Show” and shocked the hosts when she revealed just how deep she was in debt. The single mother said she owed about $185,000 on credit cards alone, which included both personal and business expenses.
Shonda explained that she had started a credit repair business after losing her brother in 2020 and struggling to return to traditional work. But the business never took off. “It’s still slow,” she said. When asked how much it currently earns, she replied, “$600 a month.”
Don’t Miss:
When he heard how much debt she had, Dave Ramsey was sharp: “$185,000 in credit card debt. What the crap did you buy, Shonda?”
She admitted that during the business launch, she used credit cards to cover everyday bills and also tried to invest in side ventures like house flipping. “I was losing money trying to do different investments,” she said.
She now works in security, making $40,000 a year. Her highest annual income to date has been $60,000. On top of the credit card debt, she owes $25,000 on a car and $36,000 in student loans.
“You make $40,000. You don’t need a $25,000 car. There’s no planet that works on,” Ramsey said, urging her to get rid of the car.
Trending: Kevin O’Leary Says Real Estate’s Been a Smart Bet for 200 Years — This Platform Lets Anyone Tap Into It
Ramsey told her not to file for bankruptcy just yet. Instead, he advised her to stop paying on the credit cards for now and let them go bad, since many creditors will eventually settle for pennies on the dollar. “You could go through and settle these credit cards over the next five years and, you know, end up getting completely out of debt for $25,000 or $30,000,” he said.
He also encouraged her to stop focusing on quick wins and start building a steady career using her criminal justice degree. “If instead you had taken that same amount of energy and poured it into your career, you’d probably be making $100K right now,” Ramsey said.
He stressed the importance of long-term growth over short-term gains. “Where you are today is not your destiny,” he told her. “Be the tortoise, don’t be the hare.”
See Also: Shaquille O’Neal Wants People to Take Heart Health Seriously — This AI-ECG Could Make That Easier
“You told me two or three different things that are internet, TikTok get-rich-quick schemes. Even your credit repair thing was a get-rich-quick scheme,” he added, noting that those approaches rarely work.
