In a recent episode of the Dame Ramsey show, a caller named Skyler reached out for help regarding his family’s financial struggles. Married for nine years with three children and a live-in mother-in-law, Skyler and his wife found themselves in a dire situation, facing mounting debt and the threat of legal action from a credit card company.
The Current Financial Situation
Skyler outlined their financial predicament:
- A $7,000 unpaid Discover card bill from their move to Charlotte over a year ago
- Total debt of approximately $70,000, including personal loans, credit cards, and student loans
- An additional six-figure student loan debt for Skyler’s wife
- A car loan of about $7,000-$8,000
The family’s financial troubles began when Skyler lost his job shortly after their move to Charlotte. Since then, they’ve been struggling to catch up on bills and tackle their debt.
Current Income and Employment
Skyler provided an overview of the household’s employment situation:
- Skyler: Working as a recruiter with a take-home pay of about $63,000 after taxes
- Skyler’s wife: Previously ran an herbal apothecary business, now dissolved; currently job hunting
- 21-year-old son: Working part-time in pressure washing and window cleaning at $16/hour
- Mother-in-law: Retired, in her sixties, and also applying for jobs
The Financial Advisor’s Tough Love Approach
The financial advisor on the podcast took a no-nonsense approach to Skyler’s situation, emphasizing the need for immediate and drastic action. Here are the key points of advice:
1. Increase Household Income
The advisor stressed that the root of the problem was insufficient income for the number of adults in the household. He urged every able-bodied adult to find employment:
“Work is where money comes from. Everybody needs a job. Ready, set, go. We’re broke. Mama done got sued by Discover. We about to get in gear, people.”
2. Maximize Working Hours
The advisor encouraged Skyler to find more time for side gigs like DoorDash, even with his full-time job. He also emphasized the need for the 21-year-old son to work full-time hours.
3. Pool Resources
Given the family’s living situation, the advisor recommended pooling all income sources, including any social security the mother-in-law might receive:
“Everybody that lives there. You don’t make enough to feed all these humans that are sitting on their butt. They all got to work. That’s what’s going on.”
4. Prioritize Debt Repayment
Once the family increases their income, the advisor suggested focusing on getting organized and paying off debts, starting with the most pressing ones like the Discover card bill.
Additional Steps for Financial Recovery
The financial advisor offered some additional guidance to help Skyler and his family get back on track:
- Enroll in Financial Peace University: The advisor offered to provide this course for free to help the family learn budgeting skills and how to work together financially.
- Create a Budget: The advisor recommended using the EveryDollar app to start budgeting for free.
- Stay Focused: The advisor emphasized the importance of staying committed to the process of financial recovery, acknowledging that it would be challenging but necessary.
A Call to Action
The conversation ended with a strong call to action for Skyler and his family. The advisor’s message was clear: every adult in the household needs to contribute financially to overcome their current struggles. By increasing their income, budgeting carefully, and working together as a family unit, they can begin to tackle their debt and move towards financial stability.
While the road ahead may be challenging, with determination, hard work, and proper financial planning, Skyler and his family have the potential to turn their situation around and achieve financial freedom.
