A recent call on The Ramsey Show featured a woman who opened up to Dave Ramsey, admitting that despite filing for bankruptcy in 2019, she’s back in debt again – to the tune of $118,000, excluding the mortgage – and her husband is completely unaware of the mess they’re in.
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“We are the poster child of trying to impress people,” the caller confessed. After buying a new house, she felt pressured to fill it with “nice things,” but this urge spiraled into financial chaos, leading her to open a staggering 18 credit cards to fund the lifestyle she thought they needed to maintain.
Her husband, who earns $35,000 a year, has no idea about their financial issues because, as she explained, “He doesn’t even have access [to our finances].” She takes home $125,000 annually, plus another $15,000 from a side hustle, yet her spending habits have left them drowning in debt – all because of a desire to project an image of success.
The caller revealed that the $118,000 in debt was spread across various sources. She owes $1,300 to the IRS and $9,500 is tied up in “pay in 4” payment plans like PayPal (NASDAQ:PYPL) and Klarna. The biggest portion of the debt –$116,000 – comes from online personal loans through platforms like Prosper. On top of that, they have a $40,000 car loan and $5,500 in credit card balances.
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This complicated mix of debt sources shows how far the situation has spiraled out of control. The buildup of loans, payment plans and credit lines has resulted in an impossible financial mess. The car loan by itself is already a big problem and with all the high-interest loans and credit card debt added on top, it’s really hard for them to make any progress without making big changes.
