Dave Ramsey concerned as man has £120,000 debt with £20,000 income

On the Ramsey Show – Highlights YouTube channel, the finance expert offered advice to Margie on how she could get out of debt.

The 40 years old and her husband were $145,000 (around £120,000) in debt with a £22,000 income.

The pair wanted to know if they should file bankruptcy and start fresh.

The couple had been sent a letter from a credit card company requesting urgent action.

In fear, Margie spoke with debt relief lawyers, who suggested filing for bankruptcy.

The couple explained to Mr Ramsey that they had $34,000 (around £30,000) credit card debt, $11,000 (around £9,000) in car loans and a joined debt of $100,000 (around £80,000) in student loans.

Their annual income is $28,000 (around £22,000).

Margie explained that their income is low because her husband is the only one working as she suffers from anxiety.

Mr Ramsey explained the student loans could not be cleared so if the couple were to file for bankruptcy, they would only be clearing the $34,000 (around £30,000) credit card debt, as the car loan also would not clear.

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He said: “You guys are starving to death with that income and bankruptcy will not fix your income problems.”

“I’m not shaming you but you have an income issue. I’ve been there. There was one year I only made $6,000 (around £5,000).”

Margie explained her husband works as a porter in a car dealership driving cars around.

Mr Ramsey explained the couple’s debt was not their issue, but their income problems. He suggested they would need to find a way to bring in more money, or would continue to struggle. They “need a miracle”, he explained.

He suggested a goal they both can aspire to.

He said: “For me to help you have a good life a decade from now, I need to paint a picture that gets rid of the stress around the bankruptcy.

“Can you imagine what it would feel like in your home if you guys made $60,000 (around £50,000) a year with no debt? That’s where I want you to go.

“There are a lot of things that need to happen before you can live that dream I set out.”

The finance expert warned her that living on her husband’s income alone is not sustainable if they want to live a debt-free life.

Margie’s husband would either need to pick up another job, or she would need to try to find work. He suggested a remote job if she has anxiety when seeing others and going outside.

Mr Ramsey said: “The advice you were given from a professional was self-serving advice on their part. These are things that are disturbing me, you’ve been given the wrong advice. No, you’re not bankrupt just ignore that. We need to get you on a budget. The main thing is that we get your household income up or you’re not going to make it.”

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