The Ramsey Show Highlights Sell Our House To Pay Off Our $1,000,000 Of Debt?
Oct 27, 2025
A homeowner grapples with over $1 million in debt, including student loans and IRS liabilities. After losing income due to a layoff, they seek advice on whether to sell their house. The guest discusses the importance of proper tax withholding and managing debts, especially high-cost car loans. Dave emphasizes the need for professional tax help and suggests selling luxury vehicles to regain financial health. The conversation is packed with practical tips to help the couple get back on their feet and rebuild their finances.
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Underwithholding Snowballed Into Big Tax Bill
- The caller described years of under-withholding that snowballed into a large tax bill.
- Rapid income increases without withholding updates led to surprise six-figure tax exposure.
Crises Need Parallel, Not Single, Fixes
- Multiple overlapping crises (job loss, IRS debt, messy bookkeeping) require parallel fixes.
- The house sale won't solve systemic issues like poor withholding and missing quarterly taxes.
Negotiate With The IRS Immediately
- Contact a tax professional to negotiate an IRS payment plan and avoid account levies.
- Fix withholding and file quarterly estimates so future tax debts stop growing.