A 26-year-old Texas man shocked listeners of “The Ramsey Show” when he revealed he and his wife are half a million dollars in debt—and she doesn’t know the full extent of it.
“I need some advice on how I can break it to my wife that we are broke and that we are $500,000 in debt,” the caller, Jim, told co-hosts Dave Ramsey and Rachel Cruze.
Credit Cards, Cars And A Big Mortgage
Jim explained that he has been handling all the finances in the household while his wife continues spending freely. “She has a credit card that she swipes and doesn’t have to worry about anything,” he said. “It’s just something that I’ve taken advantage of and gotten us even deeper with not including her in this spending ordeal.”
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The couple has been together since they were teenagers and married for three years. Their combined income is around $250,000 a year, with Jim bringing in $195,000 and his wife earning $55,000. But despite their high income, Jim said they are financially underwater.
The bulk of the debt includes a $330,000 mortgage, two car loans totaling $85,000, and roughly $80,000 in credit card debt—most of which Jim says his wife doesn’t know about. Ramsey quickly pushed back on that.
“The way you describe this, like there’s half a million dollars in debt my wife doesn’t know about. Yes, she does,” Ramsey said. “But she’s been running her credit card around like she’s in Congress.”
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Facing The Reality Of A Broken Financial Plan
Ramsey reframed the real issue: the couple has no plan, and Jim has been handling the money without his wife’s involvement. “What you’re really asking is how do I get my wife to get on a plan because our current plan sucks,” Ramsey said.
“You’re like a daddy spoiling his only daughter,” he continued. “Instead, you’re going to say, ‘Honey, we’re going to sit down like two adults now, and here’s how much money is coming in, and here’s what we owe on the house, and here’s what we have to pay on these stupid cars, and we make $190,000 a year, and we’re broke because we’re out of control.’”
Cruze urged Jim to stop carrying the burden alone and start treating his wife like an equal partner. “You’re not going to do this by yourself anymore, Jim,” she said. “Tell her that every month we’re going to sit down and relook at this plan.”
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Jim also admitted he hadn’t filed his 2024 taxes and likely owes another $25,000 to $40,000. He’s self-employed and hasn’t made any quarterly tax payments. “Your tax lady sucks,” Ramsey said. “How in the world are you making that kind of money and not doing quarterly estimates?”
Cruze pointed out that if they cut expenses and live on $90,000 a year, they could throw $110,000 at the debt in just one year. “You guys could be completely debt-free in a year,” Ramsey added.
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