Dave Ramsey Caller Asks About Paying Off Credit Cards—But Gets Roasted For Owing $52,000 On A Kia—'You're Sinking Because Of These Cars'

A recent call on “The Ramsey Show,” hosted by George Kamel and Jade Warshaw, took a sharp turn after a listener asked a seemingly straightforward question about credit card debt.

The caller wanted to know if he should focus on paying off credit cards with 0% interest but high balances, or the ones with higher interest rates and smaller balances.

Debt Snowball vs. Avalanche

Kamel jumped in: "It's simple but it's hard to grasp and to fully just take action on," he said. “The math says why would you knock out the highest interest first because you’re saving the most money, right? But what we've found is that people who actually successfully get out of debt once and for all do it using the debt snowball method.”

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Instead of focusing on interest rates, the debt snowball method prioritizes paying off the smallest balances first. “You can cross out the interest rate. Imagine it doesn't exist—0% or 50%, just pay off the smallest balance first,” said Kamel. The idea is that paying off smaller balances first builds momentum and helps change behavior, which is what ultimately gets people out of debt.

The conversation took a turn when the caller revealed he had more than $220,000 in total debt—excluding his mortgage. That included $15,000 in credit cards, $18,000 in business debt, and about $80,000 in auto loans.

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Kamel was floored. "You make $60,000 a year and you owe $80,000 in auto loans?" she asked. The caller explained that he had recently bought a new Kia, owing $53,000 on it, even though it's now worth only about $45,000. The payment is $757 a month.

"And you thought, ‘Man, I'm taking them to the cleaners on this one!’" Kamel joked, clearly in disbelief.

As it turned out, the man also owed $30,000 on a minivan worth only $20,000. Between both cars, the payments were choking his monthly budget. "You are sinking because of these cars," Warshaw said bluntly. "Both of these cars need to go today."

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Outside of the vehicle debt, the caller had a complicated financial story: He had recently lost his father, gone through probate without a will, inherited a home he's now paying $1,200 a month for, and is supporting his fiancée and their three babies under two years old on a single income. He also mentioned solar panels costing $300 a month that he didn't want in the first place.

Despite all of this, he had managed to save $1,000—Baby Step 1 in the Ramsey plan—and was bringing in an extra $2,000 to $3,000 a month from a side hustle. His fiancée, a stay-at-home mom, also earns a few hundred dollars promoting hair care products through a multi-level marketing company.

But Kamel warned against counting on the MLM income. "Google the disclosure statement for this company," he said. They legally have to disclose how many people make money. “I don't think this is the way out for you guys.”

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