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In a clip posted to TikTok this week, a 29-year-old woman explained her debts to Dave Ramsey.
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She laid out around $760,000 in debt spanning mortgages, credit cards, student debt, and car loans.
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Viewers couldn’t believe it, saying it made them feel better about their own financial situations.
Viewers couldn’t believe the story of a woman named Channing who explained she and her husband had racked up around $760,000 in debt and called in to Dave Ramsey’s radio show for help.
In a clip posted to TikTok this week, Channing, a 29-year-old woman from Washington, D.C., laid out what her and her partner owed on their mortgage, students loans, and credit cards.
The exchange was actually from 2018, but reached a massive new audience thanks to Ramsey’s repost.
Channing explained she had gotten married three months before the call, and said they had “just under a million dollars in debt.”
“We want to know how to get debt free without filing for bankruptcy,” she said.
She then laid out debts that added up to a smaller number, around $760,000 between the two.
The clip amassed over 11 million views on TikTok.
Ramsey is an American radio host and evangelical Christian who is best known for his financial advice. He has faced some controversy in his time as a public figure, including accusations in 2021 that his company had a policy of firing employees for having premarital sex.
Some people are also skeptical of his legitimacy as a financial advisor, likening him to more of a preacher than an expert on money.
However, his 2.6 million subscribers on his YouTube channel which posts clips of his show “The Ramsey Show,” and 464,000 TikTok followers show Ramsey is still a personality many trust to help with their finances.
In the comments on the recent clip, people were aghast at how two people could accrue so much debt at such a young age, a reaction Ramsey had too.
Some said they were having “panic attacks” over their own debts which were a tiny fraction of what Channing owed.
“I owe 3,000 in credit card debt and I’m so upset about it,” one person said. Another said, “And here I am losing sleeping over my 7k in debt!”
Some people couldn’t believe that banks were lending out such huge amounts of money to people.
“How do people get 6 figures in credit card debt?” one person asked. “I owed like $200 one time an it was almost impossible getting another.”
Channing explained in the clip that she and her 32-year-old husband had around $335,000 worth of student-loan debt, $210,000 on a mortgage, $136,000 on credit cards (which were mostly his), $44,000 in personal loans, and $35,000 in car loans.
Those figures add up to $760,000.
Both Channing and her husband worked in government, she said, and had a combined income of about $230,000.
“What in the world?” Ramsey said. “Are you both on this, or is it just one of you who’s completely lost your mind?”
Channing said they had both recognized the situation was dire, and wanted to sort things out.
“You’re scared and you should be, you’re disgusted and you should be, you’re in the early stages of being sick and tired and you should be,” Ramsey said. He said the couple had been living a lifestyle 10 times what they could afford.
“I’m getting ready to destroy your life as you know it, because your lifestyle is considerably above your extremely good income,” he said. “You’ve gotten used to spending like you’re in Congress. This is going to be very emotional for y’all.”
Ramsey recommended the couple stop caring about what other people think because they weren’t going to spend “any money on anything ever” for three years. He said rather than living a life appropriate to their earnings, they would have to live like they earned significantly less — $30,000.
“You’re not going to see the inside of a restaurant unless it’s your extra job,” he said. “This is how humbling this is going to be.”
The biggest adjustment for the couple would be the lifestyle change, Ramsey said, because they were going to be living on “beans and rice.”
At the end of the clip, Ramsey said Channing should sell her condo which she was renting out to put the $90,000 it was worth to the debts.
“It’s gone now. You need the 90 grand to get a jump start on the rest of this,” he said. “So that just got rid of a third of your deal. So we’re getting started.”
It wasn’t clear what happened to the couple in the years that followed, or whether they managed to eliminate the debt as Ramsey advised.
Read the original article on Insider
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