'That's A Dumb Thing To Think,' Dave Ramsey Snaps As 29-Year-Old Making $50K Explains Why She Took On A $14K Car Loan With $77K In Debt
- - 'That's A Dumb Thing To Think,' Dave Ramsey Snaps As 29-Year-Old Making $50K Explains Why She Took On A $14K Car Loan With $77K In Debt
Casey B. RennerJanuary 12, 2026 at 3:01 AM
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A 29-year-old earning $50,000 a year took on a $14,000 car loan while carrying $77,000 in debt.
Megan from Indianapolis called "The Ramsey Show," saying she felt "scared and stressed" after laying out a debt load totaling about $77,000 on a $50,000 income.
She said she owes about $15,000 in credit cards, $32,000 in student loans, nearly $9,000 in personal debt, roughly $6,000 in back taxes, a medical bill of about $1,000, and $14,000 on a vehicle.
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"I'm just paying the minimum and nothing's really going down," she said. That the payments consume most of her income even though the accounts are current.
Debt And Income Details
Megan said she is single and works full time running her family's wedding venue, where she is a part owner. She said she is considered self-employed and was told she could not be on payroll. As a result, she did not set aside enough money for taxes, which resulted in the $6,000 balance.
At that point, personal finance expert Dave Ramsey rejected that guidance outright. "Bull crap," he said, adding that owners can be on payroll and that he has paid himself that way for decades.
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How The Car Loan Entered The Picture
Megan said her previous car was totaled shortly after Christmas. She added that the vehicle was fully paid off and that insurance issued a $6,000 check. Instead of replacing it with another inexpensive car, she used that money toward a $20,000 vehicle and financed the remaining $14,000.
She considered buying another $6,000 car but worried it could have repair issues and that she would not have money to fix it. "That's a dumb thing to think," Ramsey said. "You were driving a $6,000 car before."
Co-host George Kamel then focused on the numbers, telling her the decision could be reversed quickly. "You could clear 20% of your total debt just by selling this car," he added.
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The Path Forward
From there, Ramsey told Megan that continuing to make minimum payments would keep her in the same position. Instead, he advised her to sell the car, buy a lower-cost replacement with cash, stop using credit cards, and increase her income through additional work or a side hustle.
"If you keep doing exactly what you've been doing, you're going to keep getting exactly what you've been getting," Ramsey said.
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