A woman from Raleigh, North Carolina, called into “The Ramsey Show” recently with a jaw-dropping financial dilemma.
Allie, who has been with her boyfriend for over a decade, recently learned he secretly racked up $80,000 in credit card debt. Now, he wants her to co-sign a $100,000 home equity line of credit on a house she doesn't even own.
He Took Care Of Her After A Tragedy, Now She's Paying All The Bills
Allie said she only discovered the debt when her boyfriend hit a financial wall. "He hit the end of the rope," she told co-hosts George Kamel and Jade Warshaw. That's when she learned he had maxed out every credit card. He also still owes $40,000 in student loans.
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His spending problem? Classic cars. Allie explained that he runs a restoration shop but is terrible at managing the business side. "He sees a car he wants, he gets it. He cycles through like three or four sports cars a year," she said.
Despite living with him for the last two years, her name isn’t on the mortgage. He recently asked her to co-sign a $100,000 home equity line of credit, or HELOC, so he could pay off the credit card debt. Allie immediately knew that was a bad idea. "If he takes one of those sports cars and wraps her around a telephone pole, I’m stuck with his debt for the rest of my life," she said.
Allie admitted she briefly considered helping because of what he did for her in the past. After a devastating car accident left her with spinal injuries and a traumatic brain injury, Allie lost her house, car, job and life savings. Her health insurance company sued her to recover the $500,000 they had spent on her care. With nowhere else to go, she moved in with her boyfriend, who helped her recover.
But now, she's the one carrying the financial burden. "I’m currently paying all of our bills," she said. "Because he has nothing to pay them with."
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Not Married, No Ring, No Security
Kamel and Warshaw were straightforward: she should not feel guilty or obligated to co-sign anything. "If somebody does something out of an act of generosity, they’re not looking to be paid back," Warshaw said.
They also pointed out how financially risky her situation has become. "You're paying his bills and you're broke," Kamel told her. "You’re not really gaining as much as you think."
Allie revealed she now earns about $35,000 a year, down from $70,000 before her injuries. Her health limitations keep her from taking more physically demanding jobs. And she said she feels trapped because she doesn't make enough to afford a place of her own.
Still, she admitted that if she had more money, she would leave the relationship.
Kamel and Warshaw encouraged her to keep searching for a rental or roommate situation. "There's a bunch of great girls out there who would love a great roommate like Allie who can pay her fair share," Kamel said. "He has chosen his obsession over you."
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