On The Ramsey Show – Highlights YouTube channel, the personal finance personality suggested how one woman could get out of $300,000 (around £242,000) worth of debt.
Sharneice was a single mother and had one stream of income. Mr Ramsey explained to the 34-year-old that she would have to make “radical changes” to her income in order to get out of this huge debt anytime soon.
“Something has to give,” he stated.
Sharniece explained her debt included her student loans as well as credit card debts.
She said: “It brings on loads of anxiety. ‘How can I be debt free in a short amount of time?’
“I want savings, I can’t save for anything, I just want to live comfortable.”
Sharneice makes around $65,000 (around £52,500) each year but has had a tough year.
She recently moved from a studio apartment to a two-bedroom flat in New York, which caused her to spend more on her credit card as she was buying furniture. She also had some medical issues which increased her bill.
Sharniece filed for bankruptcy in 2018 and was doing fine, however, the move had put her in debt again.
“This year has been tough, and now I’m struggling,” she stated.
Mr Ramsey replied: “So you’re broke and in debt and moved into a bigger apartment?”
The American finance personality explained to Sharniece that he can help her, but her income and debt load don’t match up. She has a large debt, but her income is small. This is what is causing her stress.
He said: “The sad news is radical difficult situations, require radical different solutions.
“The only way to get out of this highly toxic math is to do some bizarre things that will be uncomfortable in the short term
“You don’t get an option where you can decide between making $65,000 (£52,500) a year, have a wonderful life and live in Manhattan and getting rid of the debt.
“These things don’t work in the same puzzle so something has to give, either the comfortable life, or you’ll have to do bizarre things to make extra income.
“But what you’re doing right now won’t work in the next two decades you will still be in debt.
“If you chose to stay where you are , this stuff will come crashing down on you. It’s not sustainable.”
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