Dave Ramsey explained how the dad of four can get out of his $100,000 (around £80,000) debt, despite only earning $32,000 (around £25,000) a year.
The finance guru warned Adam that his life “won’t get any better” unless he takes the necessary steps.
Adam and his wife have a total of $100,000 (around £80,000) in debt due to various student loans, medical bills and car loans.
Adam never got to finish his degree due to raising his kids, however, he has “no way out” as he doesn’t know what to do.
One of the student loan companies is attempting repossession so he wants to know if he should consider filing bankruptcy.
Mr Ramsey said: “You’re stuck right now and you’ve had the cr*p beat out of you.
“So I’m trying to coach you through this. You have to double your income whether you file bankruptcy or not.
“It’s not necessarily going back to school it’s just a better choice of where you’re working and what you’re doing.”
He warned “it’s not getting any better,” as he has been living paycheck to paycheck for five years so something has to change.
“For five years you’ve been living on nothing,” he added.
The math won’t get easier until we get more income.
He wanted the pair to avoid bankruptcy but explained they may need to pick up side hustles to bring extra income in if they can’t find better-paying jobs.
He said: “People do these things all the time and you hear them doing the debt-free screams.
“I don’t care if you’re cutting grass, making websites, or cutting hair, I don’t know. Let’s just pretend it’s possible because it is.
“You guys are so used to living on nothing. For five years you’ve been living on nothing,” he added.
If they had an extra $50,000 (around £40,000) to take home each year, they could solve their whole debt situation in two years.
Mr Ramsey stressed that income is the most important wealth-building tool.
He didn’t want them to file bankruptcy unless it was the last resort as it comes with other conditions.
He concluded: “Figure what the steps are to be what you need to be to make more money. And don’t tell me it’s taking out more loans to finish school. It’s not.
“That’s what’s necessary here, find a way to make much more money because if you live this way for the next 20 years, you will struggle.”
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