Quit Being ‘Spoiled Freaking Brats,’ Dave Ramsey Snaps At $200K-A-Year Couple With $800K Home — Then Calls Their Situation ‘Skinny Fat’
Despite a $200,000 household income, one couple questioned whether an $800,000 home was holding them back financially.
Jessica, 28, said “The Ramsey Show,” in which she and her husband had been budgeting for years but continued to carry debt because she thought the payments were manageable. The couple owns a home worth up to $850,000 and owes about $480,000 on their mortgage.
“We’ve always maintained our debt,” Jessica said. He asked if selling the house, renting it for a while, and using the equity to pay off balances and rebuild savings would be the right move.
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Personal finance expert after reviewing the numbers Dave Ramsey He rejected this approach. “Stop being $200,000-a-year spoiled brats,” he said in response to ongoing debt as well as how the income was handled.
Jessica said their balances include a mortgage line of credit of about $70,000, two car loans worth about $70,000 and a camping trailer worth $16,000. The monthly payment for one vehicle is around $700, while the other is around $600.
Pointing to the gap between earnings and results, Ramsey said, “You make too much money to be that broke.”
Jessica also talked about her plans to move to Utah, though not for another four to five years. She said her husband’s parents lived just down the street and helped care for their children while she and her husband were at work, making an emergency move difficult.
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Ramsey said he sold house There would be no point in renting now and given this timeline. He told Jessica that the house itself wasn’t the cause of the problem, and warned that paying off debt without changing habits would likely lead to a relapse.
co-host Jade Warsaw added this high income It can create “thin fat” finance, where everything seems stable on the surface, but weaknesses remain at the bottom.
“Just because it looks healthy doesn’t mean it actually is,” he said.
Ramsey said the couple could pay off about $10,000 a month and be debt-free in about 14 months. This plan would require cutting discretionary expenses and selling non-essential items, including the RV, but keeping the home.
“This is a 14-month process of sacrifice, you will never be the same,” Ramsey said, adding that selling the house would not change behavior.
