"You can't even afford rent," career expert and "The Ramsey Show" co‑host Ken Coleman said in a recent episode. He addressed Rachel, a Dallas caller whose 2023 flood pushed her family into her parents' RV.
Finance coach and fellow co‑host Jade Warshaw echoed the warning. The hosts insisted that wiping out $40,000 in debt must outrank buying another camper, no matter how daunting Texas rents appear for families today.
Rough Math Meets Tough Love
Rachel told the hosts that her household lives rent‑free on her parents' land, that she has pared her unsecured balances to $40,000 and that she has banked just $2,500. She brings home $70,000 and her husband earns $11 an hour while pursuing marine‑biology studies. Coleman said monthly rent should stay at $1,250 to preserve cash for repayments.
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"You should not stop paying down your debt to buy an RV," Coleman said. "You have no idea what it will cost," Warshaw said. Coleman urged moving closer to Rachel's workplace and pausing coursework so her husband can seek higher wages — steps the show's hosts often prescribe for callers in similar binds.
Debt Data Mirrors Caller's Strain
The couple's predicament mirrors broader figures. The Federal Reserve Bank of New York in May pegged household balances at $18.2 trillion in Q1 and reported that mortgage balances climbed $199 billion. Freddie Mac said the 30‑year fixed rate averaged 6.72% for the week of July 10.
Higher rates feed steeper obligations. Typical monthly debt payments reached $1,237, up 5% year over year, Experian found. The Bureau of Labor Statistics showed shelter costs rising 3.8% in June from a year earlier, pressuring renters already juggling larger credit card balances and pricier auto loans.
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With budgets squeezed, 64% of workers plan a second job or side gig this year, according to the American Staffing Association. Coleman's rent ceiling reflects those realities, emphasizing liquidity for repairs and emergencies instead of new liabilities.
Map To Move Forward
Coleman told the caller to "get your income up and change your lifestyle." He recommended relocating nearer to work, trimming transportation costs and delaying further study. Warshaw, who once eliminated $460,000 herself, said every extra dollar must attack principal until balances vanish.
Ramsey Solutions' Baby Step 2 guide endorses the avalanche method, which targets the highest‑interest debts first and the snowball, which clears the smallest balances for quick wins.
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