An Oregon family of 6 is $90K in debt and $25 in the bank. Dave Ramsey says there is only one way out
According to a survey by Northwestern Mutual, more than one-third (36%) of Americans say financial uncertainty keeps them up at night at least every month. Rachel from Eugene, Oregon is probably losing even more sleep over the financial forecaster Dave Ramsey described as “scary.”
Asking for advice on “The Ramsey Show,” Rachel said her husband’s business is booming and the couple has just over $90,000 in business and personal debt, including a truck and trailer they owe money on. And they still owe $175,000 on their home. The couple has three children and one on the way, and only $25 left in their checking account.
“He should have been out of business six months ago, because it wasn’t in business at the time,” said Ramsey, explaining that business owners often “call it quits” and leave a business that fails too late.
Unfortunately, many small business owners like Rachel’s husband find themselves in the same situation every year.
Rachel said her husband has signed up to become an electrician in the hope that it will be a new job for him. However, Ramsey revealed that the role would not pay enough for the couple to cover all their expenses.
Planning for a long time when the family is facing a financial problem “is like thinking of a new boat when yours is sinking,” explains the broadcaster Dr. John Delony. “The first job is to get to the beach.”
According to Dave Ramsey, “getting to shore” in this case involves taking on many tasks. He said, “So I want him to go find three jobs in construction and Walmart boxing slinging. I want him to start now.”
He also advised on the sale of the car, adding that if the family has money, the first thing they spend should be groceries and utilities, followed by the mortgage and truck payments.
He said, “I’ve been where you are, I remember what it’s like to be so scared you can’t breathe.”
Read more: 5 ways to improve your net now – easily increase your money game without changing your daily life
Millions of Americans take multiple jobs and are self-employed to make ends meet. As of October 2024, about 5.1% of workers had more than one job, according to the Fed. Meanwhile, 54% of working Americans surveyed by MarketWatch Guides said they participated to earn extra income in the past year.
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