According to The Sun, A woman has been urged to implement significant changes after her partner’s struggling business left them in a serious financial predicament. Rachel, an Oregon resident, shared her situation during a recent episode of The Dave Ramsey Show, revealing that their failing venture had set them back tens of thousands of dollars across both personal and corporate credit cards.
“Frankly, the business is tanking,” Rachel explained to hosts Dave Ramsey and John Deloney. “He’s racked up a lot of debt on both personal cards and business cards, and between that and his truck and trailer, we’re looking at over $90,000 in debt.”
Rachel further disclosed that the couple owned a home valued at approximately $250,000, with an outstanding mortgage of around $175,000. This leaves a potential profit of about $75,000 if they decide to sell.
Facing Difficult Choices
Seeking advice, Rachel asked whether they should sell their home and downsize or hold onto it. Dave quickly inquired about her annual income, to which Rachel responded that she was a stay-at-home mom with three children and another on the way. She mentioned her husband might find work as an electrician’s apprentice, but the couple was struggling to afford basic necessities, stating, “We’ve got about $25 in our checking account.”
Rachel expressed concern over her husband’s earning potential, claiming that jobs in Eugene, Oregon, were limited. Despite his construction background, she indicated that he would be fortunate to secure a position paying $30 an hour.
Urgent Action Required
Recognizing the urgency of their situation, Dave and John emphasized the need for her husband to make a significant change. They suggested he take any available job to help lift the family out of their financial crisis. Dave urged Rachel’s husband to pursue construction work with multiple crews or even consider night shifts at the local Walmart. “Not doing anything is not an option,” he insisted.
I can’t fathom the situation you’re in right now.
Dr. John Delony,
“He has to go get three jobs this week.”
In addition to seeking extra work, Dave recommended selling the trailer that Rachel’s husband had recently purchased for the business to generate additional cash flow. The experts advised the couple to adopt a “survival mode” mentality, focusing on maximizing income as quickly as possible.
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“The only answer is extreme activity on his part,” Dave stressed. “He’s a good dude; his business just failed.”
Spending Strategy
Dave also outlined a spending priority for any income the couple earns from these new jobs, suggesting they first cover essentials like food, utilities, the mortgage, and finally, the truck payment. Addressing Rachel’s inquiry about selling their home, he reassured her that it wasn’t necessary, as the primary issue was related to their income rather than their expenses.
To further assist the couple, Dave offered them access to a free financial coach through The Dave Ramsey Show to help them navigate their way out of financial stress.
Dave and his team have tackled numerous challenging financial situations on the show, including advising a couple with $20,000 in credit card debt to address their “home” issues before seeking broader improvements. They also recently guided a father of five burdened with $46,000 in credit card debt to fix a critical habit that was depleting his financial resources.
