Dave Ramsey Was In Debt 'Up To His Eyeballs' – Sheriff Wanted To Take His Kid's Crib, Now He Owns $600 Million In Real Estate Paid For In Cash

Dave Ramsey knows what it's like to lose everything – and he wants the people he helps to understand that he's been in their shoes. He doesn't speak as someone who's never made mistakes. In fact, as he revealed on his Ramsey Solutions site, he's been through bankruptcy himself.

At just 26, he was living what many would call the American dream. He had a thriving real estate business, a Jaguar in the driveway and luxurious vacations to show for it. But beneath the surface, his wealth was a "house of cards built on debt."

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Ramsey borrowed heavily to fund his real estate empire and by the time the banks called in his loans, he was "up to his eyeballs" in debt. With only 90 days to repay millions, he tried to outwork his mistakes but ultimately declared bankruptcy in September 1988. That was the same day the sheriff was scheduled to take everything, including his daughter Rachel's crib, to settle a lawsuit.

Ramsey later admitted, "I was broke and broken." With a newborn at home, a furious wife and his confidence shattered, he had to rebuild from nothing.

A Turning Point: Faith, Mirrors and Starting Over

After the bankruptcy, Ramsey had what he described as an "I surrender all" moment. "I had met God on the way up, but I absolutely got to know Him on the way down," he said. This spiritual reset led him to look in the mirror and confront hard truths about his financial habits.

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"I realized my money problems, worries and shortages began and ended with the person in the mirror," Ramsey shared. Determined to learn how money works, he immersed himself in books, sought advice from seasoned wealth builders and returned to real estate to start over.

But this time, Ramsey vowed to live debt-free – and help others do the same.

The Rise of Ramsey Solutions

In 1992, Dave launched a small radio show called The Money Game, which eventually became The Ramsey Show. Today, it's one of the most popular finance shows in the world, with millions of listeners tuning in to hear Ramsey's no-nonsense financial advice. He introduced the now-famous "Debt-Free Scream," where callers celebrate paying off their debts live on air.

Ramsey also built Ramsey Solutions, a company dedicated to helping people achieve financial freedom. His signature program, Financial Peace University, has taught millions how to budget, save and live debt-free.

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From Rock Bottom to Real Estate Mogul

Today, Ramsey has rebuilt his life far beyond what he lost. He's reportedly worth $200 million and owns $600 million in real estate – paid for in cash, which was mentioned on The Iced Coffee Hour podcast. But his focus remains on helping others avoid the mistakes he made.

Ramsey says, "I've paid the ‘stupid tax' so you don't have to. Wherever you are, whatever mess you're in, you can get out of it. You just have to face the person in the mirror, take control and go."

Sometimes, taking control might mean reaching out to a financial advisor – or someone who can help you avoid the mistakes many others (including gurus like Ramsey) have made. Anyone can take a simple step to start moving in the right direction.

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