The Ramsey Show Highlights I Have $700,000 In Non-Mortgage Debt
Dec 8, 2025
Rachel Cruze, a personal finance expert and author, joins the discussion tackling a caller's staggering $700,000 in debt. They explore the impact of rapid family growth, scrutinizing expenses like private school tuition that could be redirected toward reducing debt. Cruze emphasizes the importance of prioritizing needs over wants and suggests significant lifestyle adjustments. Listeners gain insights into managing overwhelming financial burdens and strategies for effective budgeting amidst life's challenges.
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Rapid Family Growth Strains Finances
- The caller's family grew from two to seven in five years, creating intense financial pressure.
- She describes juggling multiple young children and maternity leave while feeling exhausted and overwhelmed.
Make A Clear Debt Inventory
- List every debt smallest to largest and exclude the mortgage initially.
- Focus on totals: personal loan $28,000, credit cards $98,000, student loan $132,000, 401(k) loan $43,000.
401(k) Loan And Current Minimums
- The caller reveals they borrowed $43,000 from a 401(k) and are paying roughly $3,000 monthly minimums.
- All accounts remain current but they're using cards to stay afloat.