A 27-year-old Texas man called into "The Ramsey Show" to ask how he and his wife, who earns $60,000 a year, could handle about $100,000 in debt — including a $27,000 car loan — while he stays home with two young children.
Personal finance host Dave Ramsey immediately zeroed in: "You don't drive a $27,000 car with a $60,000 income." He told the caller, whose name was Jesse, that this was a clear sign the couple needed to sell the car and reset their financial priorities.
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What The Hosts Saw
Ramsey asked about the breakdown, and Jesse told him roughly $60,000 of the debt was in student loans, about $27,000 in the car loan, and the rest from credit cards. Ramsey said the car purchase misaligned with the household income. "You got a car you can't afford," he said.
He then pressed on the home-life side as co-host John Delony chimed in, suggesting a stay-at-home dad role isn't financially viable under these terms. Delony said Jesse and his wife were facing "a math problem," not a values question.
Why Selling The Car Was The Pivot
Ramsey and Delony said that keeping the $27,000 car while indebted by $100,000 meant the family was building stress, not security. Ramsey warned that the very thing Jesse was trying to protect — his family life — was being harmed by the choice.
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Delony added that the household was likely to be "a stressful, chaotic place" if the debt didn't change. The hosts' suggestion: Sell the car, use the sale to reduce debt, and shift to a lower-cost vehicle and lifestyle until the finances stabilize.
How They Were Advised To Move Forward
Ramsey laid out actionable steps: Jesse should keep his evening delivery job and also take on a full-time position during the day until most of the debt is cleared.
Delony challenged Jesse's assumption that his earning potential was limited to the $2,400-a-month salary he once made working at a grocery store meat market, urging him to aim higher. Ramsey stressed there's no avoiding "pain here," but better to choose it than to let it choose you. He encouraged Jesse to strap on a "tool belt" and commit to the cleanup.
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