Man on the brink of bankruptcy with an annual income of 180,000 dollars!

A man from Philadelphia called into The Ramsey Show revealing that he has over $50,000 in debt and is at the brink of filing for bankruptcy. Hosts George Kamel and Jade Warshaw were shocked by what they heard, stating, "America has lost all empathy here."

Peter, who stated he earns an annual base salary of $126,000 but brings in $180,000 with overtime, expressed that he is still overwhelmed by his debt and is unsure how to get out of this situation.

Although Peter initially claimed that his debt was "a little over $25,000," he later revealed that it totals over $50,000. This debt consists of items such as a car loan, personal loans, retirement loans, credit card debt, hospital bills, and a gas bill that has gone to collections.

Peter admitted he hasn’t created a formal budget and has been generous with fast food spending. He also mentioned that he supports his three children without a court order and sends $600 a month to his 20-year-old daughter who is attending college.

The hosts emphasized that the issue is not income but poor financial habits. Warshaw stated, "You’re overspending in other areas, not on the kids." Peter acknowledged this, replying, "I can’t deny it, I’m making poor spending choices."

The hosts advised that with an income of $130,000, he should be able to live on $100,000 and use the rest to pay off his debts quickly. Kamel noted, "If you pay $2,500 a month towards your debts, you can be free of this burden in 22 months. This way, you avoid bankruptcy, which would shake up your life for the next seven years."

Peter mentioned that he couldn’t think straight due to stress, and the hosts suggested a simple first step: writing a budget. Kamel said, "Even if it’s scary, at least you’ll avoid the unknown. Facing the facts is better than uncertainty." Kamel pointed out that bankruptcy could hinder job prospects and rental opportunities, negatively impacting his life for seven years. Instead, he suggested Peter get a clear idea of where his money is going by checking his banking statements.

Peter also stated that he uses Robinhood to invest small amounts. Kamel's advice was to temporarily delete the app. "We’re not really building wealth here. We’re just wasting time," he said. Despite the challenges, the hosts encouraged Peter, reminding him that he is capable of turning this situation around.

Kamel concluded, "If someone is willing to pay you $130,000 a year, you’re smart enough to create a budget and get out of this debt. But first, you need to stop going into debt. Debt is not a shortcut. The answer is you."