'You're Not Gonna Spend Any Money On Anything For The Next Three Years' — Dave Ramsey Is Perplexed By Millennial Couple With $1 Million In Debt

Regardless of age, income or financial background, debt has a way of sneaking up on you. And when that happens early in life, it's often difficult to see the light at the end of the tunnel.

In what has to be one of the craziest calls radio personality Dave Ramsey has ever fielded, a woman from Washington, D.C., called into his show and said, "We have probably just under a million dollars in debt, and we want to know how to get debt free without filing bankruptcy."

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As if that wasn't enough to grab his attention, the woman soon noted that she's 29 and her husband is 32.

In addition to a $210,000 mortgage balance, the caller shared that they also have "$335,000 in student loans and about $136,000 in credit cards, $44,000 in personal loans and $35,000 car loans."

At this point, you can see the perplexed look on Ramsey's face and hear the concern in his voice.

"So, yeah, I mean, are you both in on this or is this just one of you that's completely lost your mind," he asked. After explaining that the debt belongs to both of them, Ramsey turned his attention to their student loan debt. 

After a brief back and forth regarding their student loan debt — resulting from both receiving advanced degrees — and learning more about their annual income of $230,000, Ramsey laid down the hammer. 

"Is there recognition on both of your parts how absurd this situation is?"

While this situation sounds absurd on the surface, extreme debt is something that many individuals and couples are dealing with. 

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According to the Federal Reserve Bank of New York's latest quarterly report on Household Debt and Credit, household debt in the United States reached $17.5 trillion in the fourth quarter of 2023. 

Broken down further, credit card balances surged by $50 billion, reaching a total of $1.13 trillion. Meanwhile, mortgage balances saw an increase of $112 billion, climbing to $12.25 trillion. That's in addition to auto loan balances that continued their upward trend since 2011 — growing by $12 billion to $1.61 trillion total.

Ramsey's guidance for the couple was harsh.

After telling the woman he was about to destroy her "life as she knows it," he said, "Your lifestyle is considerably above your extremely good income and has been for a period of time."

He left her with one final piece of advice.

"You’re gonna have to not care what anyone thinks, including each other, because you’re not gonna spend any money on anything for the next three years."

Consulting a financial adviser can help when dealing with extreme debt. An adviser will review household finances, including income and debt, to personalize a strategy for paying down liabilities as quickly as possible. 

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Chris Bibey has written about personal finance and investment for the past 15 years in a variety of publications and for a variety of financial companies. He is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Bibey believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.