For anyone who's ever splurged on a car they couldn't quite afford, one recent segment from "The Ramsey Show" will feel painfully familiar.
In an episode from the "Unforgettable Calls: Dave Ramsey's Greatest Hits" collection, the personal-finance host took a call from Chris in Dallas, Texas, a 39-year-old entrepreneur earning about $175,000 a year whose $1,100-a-month Cadillac SUV had just been repossessed.
Chris explained that despite his six-figure income, his luxury SUV was "repo'd" after he fell behind on payments. The car cost him roughly $1,100 a month, and he still owed $27,000 on it. His interest rate wasn't outrageous—about 5.9%—but the debt load was. On top of the Cadillac, he also financed a $600-a-month work truck, a $1,700 house payment, and roughly $6,000 in credit-card debt.
Don't Miss:
- If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
- $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
When Dave Ramsey asked why the payments weren't made, Chris admitted that juggling multiple loans had simply caught up with him. That's when Ramsey's patience wore thin.
"Anything that sounds like an $1,100 car payment is straight-up stupid," Ramsey said. "And what's even crazier is making all this money and didn't even bother to pay the bills."
The exchange quickly turned into one of those signature Ramsey reality-checks—equal parts harsh truth and coaching. And Ramsey explained, "I'm picking on you, but for your own good, because you're so freaking smart and you've got the ability to make so much money." He reminded Chris that he wasn't calling him stupid—just making bad choices that kept him broke despite high income.
"Stupid people don't make $175,000," Ramsey said. "You're not stupid—you're just doing some stupid stuff on the spending side."
Trending: Microsoft's Climate Innovation Fund Just Backed This Farmland Manager — Accredited Investors Can Join the Same Fund
Ramsey went on to say that when he was a decade younger than Chris, he made the same mistake of believing income could fix financial ignorance.
"I thought I could out-earn my stupidity," Ramsey admitted. "I thought I could make enough to be stupid."
Then came the action plan. Ramsey advised Chris to pay the $3,500 required to reclaim the repossessed SUV—but not to keep it. Instead, he urged him to sell it immediately for a potential $9,000 profit, throw that money toward paying off his wife's car, and drive the work truck himself. From there, the goal was to crush every remaining debt and swear off car payments forever.
The conversation highlighted one of Ramsey's biggest themes: income doesn't equal wealth. Even those making six figures can fall behind if lifestyle inflation eats every dollar. His "Total Money Makeover" philosophy centers on living below your means, paying off debt fast, and buying cars only with cash.
See Also: If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
Ramsey's delivery may sting, but there's method behind the sting. His harshness, as he's quick to note, comes from experience—losing everything once himself and rebuilding through discipline.
In the end, Chris agreed. "You're exactly right," he said. Ramsey's final words were both rebuke and encouragement: stop being "stupid with money," get organized, and start building instead of borrowing.
Read Next: Are you rich? Here’s what Americans think you need to be considered wealthy.
Image: Shutterstock
