Justin, who is from Pittsburgh, told “The Ramsey Show” that he was considering marriage while facing a huge financial gap between himself and his partner.
The 28-year-old told the host that his girlfriend of two years had graduated from veterinary school and would bring about $350,000 in student loan debt to the marriage. co-host george carmel Asking Justin how much debt he would bring into the relationship, Justin responded that he had none.
Justin said he was earning about $107,000 at the time and expected to earn about $135,000 when he returned from a nine-month military deployment.
Don’t miss:
He asked how to prioritize paying off debt alongside a marriage and a major purchase like a home or vehicle. The question prompted blunt warnings from personal finance experts Dave Ramsey In some cases, if both parties disagree on actively resolving the debt issue, the correct approach is to “run and run.”
In addition to being debt-free, Justin said he has about $21,000 in cash, about $60,000 in retirement savings through his Thrift Savings Plan 401(k) and an investment portfolio worth about $110,000.
He also served in the Navy Reserves and worked as a project manager in the oil and gas industry. He said a recent deployment has temporarily affected his income and expects it to be higher when he returns to civilian work.
Hot Topic: GM-backed EnergyX is solving lithium supply crisis — Invest before scaling up global production
“The number one cause of divorce in North America is money fights and money problems,” Ramsey said of how couples need to work together to address debt issues. He added that Justin was “in trouble” and the size of the loan meant the relationship required an unusually deep agreement on short- and long-term financial plans.
Ramsey then outlined two possible paths. “What if she rolled up her sleeves … and said, ‘Oh my gosh, we’ve messed this up. We’re going to fix this… We’re going to fix this,'” he said, describing a situation in which both parties worked long hours, cut spending and aggressively paid down debt. He told Justin that if both parties put their best foot forward – “working like crazy” – the debt could be paid off in a few years.