A financial guru gave sobering advice to an 86-year-old woman with leukemia who was struggling to pay off $30,000 in credit card debt.
When she called The Ramsey Show for some advice, a caller calling herself Joan said she had racked up a huge amount of debt just to make ends meet.
“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,” said Joan, who lives in Jacksonville, Florida.
Although host George Kamel initially expressed reservations, he told her she would have to sell her house. That was the only option.
A financial guru gave 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 caller identifying herself as Joan explained that she had racked up a huge debt just to make ends meet.
Earlier in the show, Joan revealed that she had been a single mother since she was 19 and had no savings of any kind and never received a cent of child support.
Joan said she worked until she was 80, when it became difficult to continue because of her leukemia, which she had 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 survive on such a small amount, Joan began to borrow money, which only added to her problems.
“The reason I have credit card debt is because I always need about $200 extra (a month),” she complained to the hosts of The Ramsey Show, a radio program and podcast about finances.
Over the past month, Joan itemized every expense and said, “I wrote down every penny I spent last month.”
After accounting for fixed costs, she found she was left with no more than $100 to $200 to cover essential expenses like food and gas. These expenses have both increased 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 also means she relies on her credit card debt to cover unforeseen expenses, such as $3,000 for car repairs, $700 for the dentist and $181 for her dog.
This has created a vicious cycle where Joan becomes increasingly dependent on debt to pay her bills, causing her credit card balance to spiral out of control.
Co-host Jade Warshaw felt sorry for the caller and said: ‘You don’t have a pillow.’
After the 86-year-old woman made the minimum payments, interest began to rise to the point where the debt was out of control.
According to the Federal Reserve, the average debt for people between the ages of 65 and 74 in 2022 was $134,950. For people 75 and older, the average debt was $94,620.
Joan offered some of her proposed solutions, including selling her 17-year-old Crown Victoria automobile. This move 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.
Kamel, struggling to find a solution, asked if Joan could get a part-time job to pay off her debts
The 86-year-old estimated the value of her home at somewhere between $195,000 and $250,000. Unfortunately, she explained, the other homes in the neighborhood are worth much more because they are newer homes.
Presenter Kamel opposed the sale of the car, as she felt it would not pay off her debts.
Struggling to find a solution, Kamel asked if Joan could get a part-time job to pay off the debts.
She said she has leukemia, which limits her energy and makes working more difficult.
Kamel had initially expressed concern about selling the house: “You have a fixed cost with this paid-for house. If you sell it to pay off your credit card debt, you’re left with costs that are constantly increasing.”
But by the end, the financial guru had run out of options and resigned himself to the idea that Joan would sell the house. ‘Look at downgrading the credit on the house and moving into an apartment where you pay cash for it, eliminating the credit card debt.’
But by the end, the financial guru had run out of options and resigned himself to the idea of Joan selling the house.
“Look at lowering your credit on your home and moving into an apartment where you pay cash and get rid of the credit card debt.”
He concluded by recommending that she give her beloved pet a new home.
“I’d rather you eat than the dog.”
