A caller on a recent episode of “The Ramsey Show” opened up about a tension many young couples face when aggressively paying down debt: losing touch with friends.
Kristen from Arkansas told co-hosts Rachel Cruze and John Delony that she and her husband are working extra jobs and turning down weekend trips to stay focused on paying off a hefty $162,000 in non-mortgage debt. But not everyone in their circle is thrilled about it.
Friends Aren’t Always Supporters
“I’m just trying to figure out the best way to deal with our friends if they get upset when we say we’re not going to spend the money to go on a weekend trip,” Kristen said. She described how their friends sometimes express frustration or confusion, saying things like, “I’m just trying to figure out when you’ll have free time again.”
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Delony was upfront: “You’re at an age, and it stinks. It’s the worst, when the friendships that served you really well in your 20s start to thin out and really change.”
He joked that in your 30s, people tend to splinter into different identity groups: “Someone’s going to have a baby and you’re going to find out they’re like a weird little league parent… or you’re going to be the weird cult people that like start paying off your debts.”
The hosts emphasized that true friends should support your goals, even if those goals don't include going out every weekend. “If you find friends that are getting on to you because you want to have peace in your life and freedom in your life, and they want to make your journey about them, then they may not be your friends down the road,” Delony said.
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‘You’re Not In A Place To Be A Landlord’
Kristen revealed they bring in about $4,900 per month after taxes, plus another $3,000 to $4,000 from side gigs. Their debt includes student loans, credit card balances, medical bills, a land loan and a rental property that's still under renovation.
Delony was direct: “You’re not in a place to be a landlord.”
Kristen said the unfinished rental could sell for $70,000 to $80,000 once completed. The couple owes about $5,000 more to finish the remodel. They also have a $75,000 land loan on what she called their “dream property.”
“The things y’all have done are not necessarily bad, buying a rental property, buying a piece of land,” Cruze said. “They’re just out of order. You guys have student loans, you got medical debt.”
Selling both the land and rental property, the hosts said, could wipe out most of their debt and fast-track their financial freedom. Their $16,500 in credit card debt could be gone in a matter of months at their current income level.
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Don't Mortgage Your Peace
Delony drove the point home with a personal anecdote. “I want land so bad. Like, not healthy bad. And I can’t afford it right now. But what I don’t want to do is mortgage my anxiety,” he said. “I don’t want to mortgage my stress in my house. I want to just exhale.”
He added that if the couple sold the land and the rental property, they'd be nearly debt-free.
As the call wrapped, Cruze reminded her that they're not alone. “I know you called about your friends, but we’re your friends, too,” with Delony adding, “and your friends are right on this one.”
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