On the Ramsey Show – Highlights YouTube channel, the finance guru offering advice to Channing on how she could get out of debt. The 29 years old and her husband had just under $1million (around £800,00) in debt, and wanted to know how to become debt free without filing for bankruptcy.
She explained to Mr Ramsey that their mortgage is $210,000 (around £170,000).
They have $335,000 (around £270,000) in student loans. They both have advanceddegrees and are working in the Government, she stated.
Their household income is $230,000 (around £190,000), however, they have $136,000 (£109,000) in credit card debt, $44,000 (around £35,000) in personal loans and $35,000 (£28,000) in car loans.
Channing said: “We just made really poor financial decisions and thought we could pay it back as we go but it doesn’t happen.
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“We’re both scared and want to do anything we can to avoid bankruptcy.”
The finance guru replied: “You’re scared and you should be, you’re disgusted and you should be.
“You’re in the early stages of being sick and tired and you should be.
“You’ve been living 10 times better than you will be for the next three years.
Their household income is $230,000 (around £190,000), but they’ve been living on $310,000 (around £250,000).
For this to work he has to put them on a strict budget of $30,000 (around £24,000) for the year.
Mr Ramsey said: “You won’t see the inside of a restaurant unless it’s your extra job or you’re waiting on some of the people you work with during the day.
“This is how humbling this is going to be. It’s going to crush a lot of your soul that caused you to do this and the bad news is it’s gonna be really rough.
“The good news is it’s gonna be great for you guys, relationally, spiritually and financially.
“But you’re not gonna make the financial unless you make the relational and spiritual move.”
He warned the couple of what was coming and the sacrifices they would have to make to improve their financial situation.
The pair were able to move in with her parents to help them save money. Channing has an apartment that she has been renting out, but Mr Ramsey suggested she should just sell it in order to eliminate some of her debt.
“It’s the shock to the system of the way you’ll be living,” he added.
For more clips, Britons can visit their youtube channel.
