Dave Ramsey Told A 31-Year-Old Man Making Less Than $10K A Year, You Have A 'Pretty Extreme Income Problem,' But You're Not Bankrupt

Eric from Orlando, Florida, called into “The Ramsey Show” several years ago looking for financial advice. The 31-year-old said he was being sued for $12,000 in credit card debt and had been told by a lawyer to file for bankruptcy. But personal finance personality Dave Ramsey wasn't having it.

“Asking a bankruptcy lawyer if you’re bankrupt is like asking a dog if it’s hungry,” Ramsey said.

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Ramsey Says It’s Not Bankruptcy—It’s A Career Crisis

Eric explained that he makes less than $10,000 a year working two part-time jobs, one paying $8 an hour and the other $12. He had about $20,000 in total debt, mostly from credit cards and some medical bills. He lost his last job bussing tables at Olive Garden during the pandemic and lived with roommates in Florida.

Ramsey quickly zeroed in on the real issue. “I hear that you have a pretty extreme income problem,” he said. “That’s not a putdown. It’s just where you are right now.”

He told Eric that even if his debt disappeared, the underlying problem would remain. “If we waved a wand and you had no debt today, you’ve still got a mess because of your income,” Ramsey said.

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Eric has a degree in creative writing but said he's struggled to find stable work since college. Ramsey responded, “I don’t think you’re bankrupt. I think you have a career crisis.”

Co-host at the time, Anthony O’Neal, suggested driving for Uber UBER in Orlando, where he said drivers typically make $600 to $1,200 per week. Ramsey recommended delivering pizzas, noting that it could add $18,000 a year in income. “The bad news is you don’t make much money. The good news is a little bit of a move will greatly impact your situation,” Ramsey said.

The additional part-time jobs would almost triple Eric’s income, according to Ramsey.

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Looking Toward The Future

Ramsey told Eric he wasn't alone and reminded him that thousands of others had been in similar situations but turned things around by focusing on steady income and long-term goals.

He encouraged Eric to stop looking for quick fixes like bankruptcy and instead start thinking seriously about building skills that could result in consistent, reliable work.

“It doesn't have to be fancy, and it doesn't have to be that you get a Ph.D.,” Ramsey said. “We’ve just got to get you thinking differently about your income side.”

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