A couple’s $100,000 home sale profit turned chaotic when they spent the money on cars instead of obligations. Personal finance expert Dave Ramsey expressed disbelief, emphasizing the importance of understanding tax implications. The couple, who sold their home for $415,000, now faces a tax bill of around $20,000.

Logan and his wife, who bought their home for $315,000, walked away with $77,000 after selling. Despite owing $37,500 on a truck, $22,000 of the proceeds went towards a car for Logan’s wife. The couple, living paycheck to paycheck, now grapple with unexpected debt and tax responsibilities.

Ramsey advised Logan to pause major financial decisions and consult a tax professional to determine the exact tax owed from the sale. The couple, who had no down payment on their home and lived on a tight budget, now face the consequences of their financial choices. Delays in addressing the tax bill could exacerbate their financial woes.

Read more at Yahoo Finance: ‘What Are You Smoking?’ Dave Ramsey Blasts $130K-Income Couple After $315K Home Flip, $22K Car And ‘Stupid Cars’ Spiral’