A WOMAN has revealed that she’s currently swamped in a whopping $185,000 worth of credit card debt.
The desperate American phoned into the Ramsey Show for some support.
A woman has revealed that she’s currently swamped in a whopping $185,000 worth of credit card debt[/caption]
Calling in to seek advice from financial expert Dave Ramsey, Shonda from Chicago, Illinois, revealed she had accrued $185,000 in credit card debt from both work and personal expenses.
The amount alone shocked Ramsey, who asked her “What the cr*p did you buy Shonda?”
She also has unpaid student loans, a loan on her car and unpaid house payments.
In the YouTube video, Shonda also owes roughly $25,000 on the car and $36,000 in student debt from her degree in criminal justice.
Shonda explained that after the loss of her brother in 2020, it was hard for her to go back to work.
Then, after starting her own credit repair business slowly, she had to use some money to pay for bills in the early stages.
Even today, the business is still slow, and despite Shonda admitting that it failed, she’s still running it.
Shonda revealed that it only makes $600 a month, however, and she makes $40,000 a year working in security.
Shonda was being forced to borrow money for essentials, and was also investing in other projects, like house flipping.
The mother has a daughter about to start college, which adds more pressure to the situation.
Things have gotten so bad for Shonda that she’s considered filing for bankruptcy.
DAVE ON THE CASE
Offering some advice, Dave suggested first off selling the car to claw back some cash.
He said that by doing this, Shonda could easily net $40,000.
Dave said that Shonda had fallen for get-rich-quick schemes that were popular on TikTok, and that the credit repair business is not viable.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
The expert wondered why Shonda hadn’t made more use of her degree to forge a stable career path for herself, too.
Reflecting on his own experiences with debt, Dave said that Shonda needed to ask herself how she had fallen for these schemes.
He also urged Shonda not to pay the student loans or credit cards for a while.
Before paying, Dave suggested Shonda instead take the immediate future to set up a budget.
Dave promised Shonda that letting the lets the cards and loans worsen would be a good step, as she is not in the position right now to pay them.
Right now, she can focus on making real money using her background in criminal justice.
Before the call ended, Dave decided to sign Shonda up for his budgeting tool, as he remembered being scared in debt just like she is right now.
Calling in to seek advice from financial expert Dave Ramsey, Shonda from Chicago, Illinois, revealed she had accrued $185,000 in credit card debt from both work and personal expenses[/caption]
