📈 Are you on track with the Baby Steps? Get a Free Personalized Plan 📱 Watch the full episode for free in the Ramsey Network app Ken Coleman & Jade Warshaw answer your questions and discuss: "We are falling behind on Baby Step 2. Should we get a debt consolidation loan?" "How do we help my father-in-law get out of debt?" "Should we change our rate of retirement investing?" " I completely trashed my credit and now I can't find a place to rent," "Everyone is telling me to file for bankruptcy, what should I do?" "What should I do with my $200,000 inheritance?" Next Steps: ✅ Help us make the show better by taking this short survey! 📞 Have a question for the show? Call 888-825-5225 weekdays from 2–5 p.m. ET or send us an email. 🎟️ Dave Ramsey and John Delony are going on tour this month! Get tickets today 🏘️ Find a Ramsey Trusted Real Estate Agent 💵 Start your free budget today. Download the EveryDollar app! Connect with our Sponsors: 🛒 Stop paying more and start shopping smarter at Aldi 🌱 Get 10% off your first month of BetterHelp 📱Go to Boost Mobile to switch today! 🏥 Learn more about Christian Healthcare Ministries 🏡 Get started today with Churchill Mortgage 🔒 Get 20% off when you join DeleteMe 🏦 Go to FAIRWINDS Credit Union for an exclusive account bundle! 🥗 Save 15% on your first Field of Greens order with code RAMSEY ⛨ Find top Health Insurance Plans at Health Trust Financial 💸 To find out more about student loan refinancing, check out Laurel Road 💻 Visit NetSuite today to learn more 🗂️ Use promo code RAMSEY for 18% off at The Nokbox 💵 Learn more about Timothy Plan 🏛 Get started with YRefy or call 844-2-RAMSEY 🔐 Visit Zander Insurance for your free instant quote today! Explore more from Ramsey Network: 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💡 The Rachel Cruze Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: How should I handle debt consolidation when my income drops suddenly?
Hi, guys. I appreciate you taking my call. I hope you guys are doing well today. Yes, sir. Brief and to the point, about last September, my wife had a major medical problem. Something happened medically that has left her to where she's on temporary disability.
Oh, I'm sorry.
Well, thank you. The problem is that the temporary disability is less than half of what she was earning whenever she was working. Uh-huh, yeah. We're waiting for some sort of a resolution to come with us medically so that we should get back to work. But in the meantime, the four walls are built. I've asked her if we could sell the car, but that's a non-starter for her.
Why is that a non-starter?
Because we were able to make the payment on the car whenever she was working. Okay. And she said that whenever she's able to get back to work, your car payment will be able to cover that too. Okay. But what she's wanting to do is she has $100,000 worth of student loan debt that we've already tried.
We've already went through a little road, and they're not in default, so we couldn't go through our refi. Okay. So we can't refi the student loans. She's current on those. The problem, though, is that where we're at with actually killing us right now is we have about $30,000 worth of credit card debt.
Okay.
And she's wanting to do a debt consolidation loan. I've considered this. She's wanting to do a debt consolidation loan. In order to possibly wrap those all up into a lower payment, smaller than the payments that we have right now. And I was just kind of curious as to what your opinion is on this.
Yeah. Before I get to the debt consolidation, I want to know a little bit more about the financial, the income situation. So she's on less than half. What are you bringing in every single month?
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Chapter 2: What are the best strategies to help a heavily indebted, incapacitated family member?
OK, I want you to get every dollar. It's going to help you a little bit more and it's going to help you guys stay on track because this is also anything that can make life a little bit easier right now is going to help you. And I want you to go through with a fine tooth comb. Where is it that we can skim anything out of forty six hundred dollars a month? Where can we cut back?
What's your mortgage or your rent? What are you paying?
We don't have mortgage or rent.
Okay.
The house was paid for.
Great.
Yeah, we paid it off like five years ago.
Great. And do you have young kids, anybody in daycare or anything like that?
No.
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Chapter 3: How much should I be saving for retirement at age 60 with a special needs child?
We're renting. We're working the baby steps. We're on baby step two right now. We do have a special needs child, and so we've got probably about $20,000 left in debt ourselves. So the goal was to maybe use the equity from his home sale to go in on a home together that would have enough space for us to be able to take care of him and our family.
100%.
His house and clear his debt up. I don't know if I like the idea of using some of that. This is where I'm bringing in my partner here. I have a check in my spirit.
I got a big old check.
So I'll lead and go down on the diving board and then let her score my dive. Okay. I like him selling the house, and let's clear his debt. He's got plenty of equity to do so. So he's now debt-free. I am not in favor of you all using what's left of that to buy a house together. I think he needs those funds for right now set aside for his ongoing care in some form or fashion.
That's right.
I don't have it all figured out because I think this is a complex situation, but I would hold the money left over after paying off his debt. And let's get into a if we got to get a different rental or something like that and maybe some of that. But I got to check in my spirit about buying a house.
I do, too. I don't. You are going to be providing care, but I don't think this is like an opportunity for you guys to get in a home. Um, because I don't, I don't, I mean, there might be something that you guys talk about with him. I don't know how is he 100% lucid. Like he's got a power of attorney. So I'm guessing not.
He's not making smart choices. He's been refusing medical care, uh, documented in his chart, but then he's telling us that he hasn't been, um, same thing. He says, Oh, I only have four credit cards. Then we pull the credit report. Does he have a, does he have a will? He has an outdated will that has his deceased wife on it, and he has a trust.
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Chapter 4: What can I do if poor credit and past evictions block me from renting a home?
Okay.
And you're about ready to tell us something else. Go ahead.
And I'm the primary income earner. He does caretaking for parents and our oldest child.
What is your income?
About $250,000. All right.
That's great news. What in your mind has been the age by which you said, I'm out of here. See you later, folks.
Well, I thought I would never retire before. I got some hope. So when I've been looking at it now, if I were to retire in seven years, you know, with that rule of seven, I think based on my calculations, I'd probably end up with about... And my current rate of, um, retirement savings, which is about 19% of my, of our income. Um, I think I'd have about 1.4, but I just don't know if that's enough.
So 1.4, that doesn't include the house, right?
Not including the house.
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Chapter 5: Are there alternatives to filing bankruptcy when facing unmanageable debt?
Chapter 6: How can life insurance protect my family financially?
Michelle is joining us here in Nashville, our neck of the woods. Michelle, how can we help today?
Hi, thank you so much for taking my call. I'm calling because my father-in-law has been in the hospital in California for about three months, off and on in critical condition. My husband just came back from visiting him and was given financial and medical power of attorney for him. And
We have found after pulling his credit report because he's an avoidant personality that he is in an extreme amount of debt and he's behind on his house payments and we have no idea where to start to help him. Okay.
Does he have any income coming in?
He does not. We have applied for the state of California, but nothing has been done yet. He was on FMLA leave, but there is nothing. There is no income currently coming in for him.
Okay. Was this sudden? He was working up until the point he was in the hospital? Is that what happened?
Correct. So he ended up with a broken foot and he was walking on it because of complications of diabetes, had no idea it was broken and got septic. He has had three subsequent amputations and his progress just keeps getting back and back and back.
I'm sorry. I'm sorry. Okay. How much debt?
What's the debt picture?
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Chapter 7: What practical advice helps single parents overcome financial shame and rebuild?
Okay.
And you're about ready to tell us something else. Go ahead.
And I'm the primary income earner. He does caretaking for parents and our oldest child.
What is your income?
About $250,000. All right.
That's great news. What in your mind has been the age by which you said, I'm out of here. See you later, folks.
Well, I thought I would never retire before. I got some hope. So when I've been looking at it now, if I were to retire in seven years, you know, with that rule of seven, I think based on my calculations, I'd probably end up with about... And my current rate of, um, retirement savings, which is about 19% of my, of our income. Um, I think I'd have about 1.4, but I just don't know if that's enough.
So 1.4, that doesn't include the house, right?
Not including the house.
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Chapter 8: How can I organize my financial documents to protect my family’s legacy?
No, nothing.
All right, so shoulders back, head up, forgive yourself. No shame in your game, Mama. And we got six kids that we got to take care of, one who specifically needs you. So you got to take care of you during this season. Get safe, get stable. You'll come out on the other side of this, and you're going to be fine. And your kids are going to talk about how great a mama you are too.
So hold on to that, and we're here for you. Call back at any time. You got me?
Yep, thank you.
All right, head up, shoulders back. Great hour, Jade.
Ken Coleman, well done, my friend.
A little tearjerker there at the end. It's tough stuff, but community matters, folks. It does. Can't do it alone. Community matters.
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
Yes, I have, George. Sketchy and never trust them.
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