From Yahoo Finance: 2025-05-03 17:46:00

Personal finance expert Dave Ramsey criticized a Los Angeles couple making $300,000 annually but carrying $119,000 in consumer debt. The couple has $55,000 in credit card debt, $22,000 in student loans, and more. Ramsey advised them to cut spending, create a debt-snowball budget, and become debt-free in 15 months without borrowing.

Ramsey emphasized that the couple doesn’t have an income problem but a spending problem. He urged them to stop living above their means, follow his Baby Steps financial plan, and tackle debts from smallest to largest. The average U.S. household with revolving credit card debt owes $10,500, with an average card rate of 24%.

In Southern California, where the couple resides, the median home value is approximately $980,000. Ramsey warned that high earners risk burnout and zero net worth without disciplined budgeting. He stressed that wealth comes from living below your means, eliminating debt, and not taking out more loans. Income does not equate to wealth in Ramsey’s view.



Read more at Yahoo Finance: Dave Ramsey Tells Couple With $300,000 Income They Are ‘Broke People’, Refuses To Help: Here’s Why