Personal finance expert Dave Ramsey slammed a military officer's post-divorce spending and a questionable retirement deal after the caller revealed he had accumulated $57,000 in debt.
Post-Divorce Spending Leads To $57,000 Debt For Military Officer
On Wednesday, Caller Thomas called the Ramsey Show, explaining that before his divorce, he and his ex-wife were debt-free, with 60% of his income going to investments and 40% to his Thrift Savings Plan (TSP).
"I’ve been divorced now for two years. I've found myself accumulating a little bit of debt. I'm back at $57,000," he said.
The debt included $37,000 for a Ford Raptor truck and $18,000 in credit card charges for furniture.
Ramsey criticized the truck purchase, calling it "brain damage" and a heartbreak truck bought while grieving.
Divorce TSP Arrangement Sparks Confusion And Financial Risk
Thomas said his divorce decree stipulated that his ex-wife would receive half of his TSP at age 67.
Ramsey called the arrangement "the worst deal ever," explaining that normally she would receive half of the TSP as it exists now, which she could roll into an IRA without tax penalties.
This is “very weird. Your lawyers didn't take math class," Ramsey said.
Ramsey advised him to sell the truck, get his budget back in order, focus on rebuilding his finances, and stop adding to the TSP for the time being."
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Post-Divorce Debt And Financial Recovery
In June, Donnie from Fayetteville, North Carolina, called The Ramsey Show, revealing he had nothing saved for retirement, $50,000 in debt, and wanted a divorce.
After 32 years of marriage, financial and emotional problems had piled up, including unpaid taxes and overspending by his wife.
Ramsey criticized his approach and financial management, while co-host John Delony noted Donnie had fallen into a victim dance, blaming his wife instead of taking control of his finances.
Despite previously becoming debt-free, Donnie faced a financial and personal crossroads, prompting Dave Ramsey and co-host John Delony to offer tough love and guidance.
In a separate case, Ramsey advised a 35-year-old divorced father living in a mobile home that, while providing temporary relief, it was not a path to long-term financial stability.
Earning $86,000 and carrying a $15,000 truck loan, the father was told to pay off the truck, build an emergency fund, pause retirement contributions temporarily, and save for a house, with Ramsey emphasizing that homes, unlike mobile homes, appreciate in value.
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