A financial guru offered some sobering advice to an 86-year-old woman with leukemia who was struggling to pay off $30,000 in credit card debt.
Calling The Ramsey Show for guidance, a caller identified herself as Joan and said she had racked up enormous debt to make ends meet.
‘I am 86 years old. I only have Social Security. I own my own house. I own my car, but I have almost $30,000 in credit card debt,’ said Joan, who lives in Jacksonville, Florida.
Despite expressing initial reservations, host George Kamel told him that he would have to sell his house; It was the only option.
A financial guru offered sobering advice to an 86-year-old woman with leukemia who was struggling to pay off $30,000 in credit card debt. Calling into The Ramsey Show for some much-needed guidance, a person who identified herself as Joan explained that she had racked up a massive debt to make ends meet.
Early on in the show, Joan revealed that she had been a single mother since she was 19 and had no savings whatsoever and never received a cent in child support.
Joan said she had worked until she was almost 80, when it became difficult for her to continue because of her leukaemia, which she has had for 21 years.
Since she stopped working, the 86-year-old has tried to survive on just $1,200 a month from her Social Security check.
Unable to live on such a small sum, Joan said she began borrowing money, which later compounded her difficulties.
“The reason I’m in credit card debt is because I always need about $200 more (a month),” he complained to the hosts of The Ramsey Show, a financial-themed radio show and podcast.
Last month, Joan itemized each expense and said, “I wrote down every penny I spent last month.”
After accounting for fixed expenses, she found she had no more than $100 to $200 left to cover necessities like food and gas, both expenses that have seen increases due to inflation.
“I’m 86 years old. I only have Social Security. I own my own home. I own my car, but I have almost $30,000 in credit card debt,” Joan, who lives in Jacksonville, Florida, explained to the hosts.
Her limited income has also forced her to rely on her credit card debt to cover unexpected expenses, such as $3,000 in car repairs, $700 for the dentist and $181 for her dog.
This has created an insidious vicious cycle, with Joan increasingly relying on debt to pay her bills, which in turn causes her credit card balance to skyrocket.
Taking pity on the caller, co-host Jade Warshaw said: “You don’t have any cushion.”
After the 86-year-old woman completed the minimum payments, the interest began to mount until the debt became impossible to control.
According to the Federal Reserve, in 2022, the average debt of people between 65 and 74 years old was $134,950. For people 75 and older, the average debt was $94,620.
Joan raised some of her proposed solutions, which included selling her 17-year-old Crown Victoria car, a move that would leave her without transportation.
The other solution was to sell her house and move into an apartment. Joan said moving in with her daughter was not an option.
Struggling to find a solution, Kamel asked if Joan could get a part-time job to help reduce the debt.
The 86-year-old estimated the value of her home to be between $195,000 and $250,000. Unfortunately, she explained that the other houses in the neighborhood are worth much more than that, as they are newer homes.
Presenter Kamel opposed the sale of the car, noting that it would not make a dent in his debt.
In her eagerness to find a solution, Kamel asked if Joan could get a part-time job to help reduce the debt.
He said he has leukemia, which limits his energy and makes it difficult for him to work.
Kamel had initially expressed concerns about selling the home: “With this house paid off, you have a fixed expense. If you sell it to pay off credit card debt, that leaves you with an expense that is constant and increasing.”
However, in the end, the financial guru ran out of options and resigned himself to the idea of Joan selling the house. “Consider moving to a cheaper apartment and paying cash to get rid of credit card debt.”
However, in the end, the financial guru ran out of options and resigned himself to the idea of Joan selling the house.
“Look at downgrading your house and going to an apartment you pay cash for, getting rid of credit card debt.”
He ended up recommending that he find a new home for his beloved pet.
“I’d rather you eat than the dog.”
