Recently, when a caller tried to blame the economy for her family’s millions of dollars in debt, Dave Ramsey The counterargument is that it’s not the economy’s fault.
A 28-year-old caller named Heather recently called “The Ramsey Show” to tell her that she and her husband were more than $1.3 million in debt. The couple’s financial problems stemmed from business loans, credit card balances, back taxes and mortgages. But when Heather tried to put some of the blame on the economy, the personal finance expert didn’t let go.
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“We kind of fell into the business that everyone was trying to avoid,” Heather said, referring to their summer camps and rental business that includes stages, inflatables and audio-visual equipment.
Ramsay interjected. “That’s not the case,” he said flatly. “The economy is pretty booming in some areas. But it’s just your family’s financial situation that’s terrible.” He added, “You’re in a situation right now, so overwhelmed, I can understand how you could start thinking that way. When life looks like a country song, it looks like a country song. A lot of people are still renting out their kids’ stuff here and there.”
Heather explained that they struggled to find stable employment after her husband was laid off four years ago. In 2022, they launched their summer camp business, which currently generates approximately $200,000 in revenue annually. Encouraged by this success, they went on to use a Small Business Administration loan to purchase the assets of another business for $1.2 million.
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But things went awry. “The deeper we go, the more deception we find,” she said. They later realized they overpaid by about $400,000.
Ramsey criticized the SBA for approving the massive loan, saying, “Anyone who provides this loan should be shot.” “They screw you over in the process.”
Their total monthly business costs are now about $50,000, which Ramsey is quick to point out is unsustainable. “Won’t you do that?” he asked. “A few months,” Heather replied. “But our businesses are all very seasonal.”
Ramsey told the couple to prepare emotionally for the worst-case scenario: losing everything and starting over. “You have to hold on to each other, hold on to Jesus, and hold on to your marriage,” he said. “So what? A lot of people are going bankrupt.”
