We’re $4.5 Million In Debt (I Had My Head Buried In The Sand)

[@robertthompson5908]

Let’s face it. How many of us watch these videos just to remind us that we have not completely effed up our own lives?

[@joycewright5386]

Yes! I made that comment on another video and people replied how horrible I was.

[@maxinef6654]

😂😂.

[@robertthompson5908]

@@joycewright5386 I don’t know if we’re horrible or not but we’re not alone.

[@alkatmsu]

Absolutely 💯

[@_CPerk]

😂😂 facts

[@desimo147]

It's absolute insanity having $140,000 worth of automobiles at the same time you owe over $100,000 on your credit cards, owe the IRS, owe your in-laws, and have a 2nd mortgage that you are behind on. Zero business sense here, which means zero chance of the business succeeding.

[@TheWartechgaming]

Not even just 0 business sense. It’s 0 sense in general. It’s common sense not to bury yourself even deeper in the hole you yourself dug

[@OrionOlamPiksie]

Yeah this story is weird. His advice later is running it together .

[@88smjls]

Would be funny if it was 4.5 million in car loans lol

[@Fpan87]

‘Murica!

[@SpicyDragoon]

And still not paying his employees their wages.

[@Nonsense116]

imagine having a boss with 6 figures-worth of cars telling you he can't afford to pay you. What a failure.

[@mcw2553]

But he doesn't own those cars 6 figure cars though - he's in $140K debt that can he can't pay off. He might as well be driving a rental.

[@Excalibur2]

​@@mcw2553"sorry, I spent your paycheck on car payments and I'm still underwater"

[@TheExdraconian]

@@mcw2553 Hows the employee supposed to know that, ya dingus. The wife didn't even know

[@Gruuvin1]

​​@@mcw2553imagine it from the employee's point of view.... And who cares if the cars are paid off or not? He's making those payments, isn't he?

[@HoustonTom]

If you can’t make payroll, it’s time to call it quits on the business.

[@Scottyv12]

If the business isn't profitable it isn't a business, it's an expensive hobby!

[@rachelmaddowswife8713]

On average, it takes a business 2-3 years to turn a profit. You shouldn't start a business expecting it to be in the black in the first week, you need a very large financial cushion to tide you over. That said, you should have a solid enough business plan from all your expertise in that field to secure funding from banks and investors. When it gets to the point that you want to double mortgage your family home, it's time to call it off.

[@aceapolonio7284]

Uber became proftable after 15 years, what are you talking about? Lol

[@Scottyv12]

@@aceapolonio7284 You can't sink money into something for 15 years thinking you have the next Uber, Tesla, Microsoft, or Amazon. The odds are infinitely higher that you just have a failing business.

[@rachelmaddowswife8713]

@@aceapolonio7284 They were able to pay salaries due to investors though. It's not the same situation at all.

[@Mr_D555]

No payroll = no business, shut it down.

[@bettysmith4527]

Right... the guy has millions of dollars in home and car and he cannot even pay his workers!! Unreal!!

[@bryandelcid4065]

Yes, unfortunately once you start getting other people involved and start messing with their livelihood then it’s time to call it quits. It’s no longer morally and ethically right to keep that business.

[@RichardQuaid]

What are talking about? Just ask the King of Debt, Donnie. You don't have to pay people till they take you to court.

[@barbieblue3336]

200 %

[@jodo7814]

@@bettysmith4527 Lots of business owners like that out there. Bunch of broke users. And then of course they close the business and leave all the employees out to fend for themselves as they whine about “how hard life is” driving home in a luxury car to their luxury condo.

[@mullenio4200]

He bought a $3.3m warehouse, using the house as collateral without asking his wife. I'm sorry, but that's a line for me. I'm gone.

[@SLOBeachboy]

Not only that but the fact that he felt he needed to buy it at all tells us a lot about this guy’s mindset. Normally you only need to buy a bigger and better warehouse when sales are increasing so rapidly that the old warehouse cannot hold everything. But some people get into this if-you-build-it-they-will-come mentality, and they expand based on what they want the business to be and not what it actually is. Basically, he cannot accept that his business if failing and so instead of either just scraping it and starting over or coming up with a sound game plan to get it back on track he thinks that if he just throws enough money at it that everything will be okay. In other words, I think he most likely bought the warehouse to make himself feel like he is running a successful and expanding business rather than because he actually needed it.

[@Iwantallmymoney2024]

That’s why they want you to submit to them. Don’t question any of my poor decisions. Smh

[@jpm7049]

@@SLOBeachboyor business was good enough to justify the warehouse but then fell off.

[@AmaraOkpechi]

Yes, sir! Gospel! TRUTH!

[@maryanne2939]

Isn't her name on the deed to the house??? Did she just sign off on the 2nd mortgage? If the house is not co-owned her problems are even bigger!!

[@robinmoody-o2p]

We started with Dave in 2003 and are millionaires with a paid for house. We’re just average folk who followed his advice. We are now 70 & 66, my husband was laid off in 2014, became disabled so was unable to work. I had to leave my job to care for him however because we’d followed his plan, we never had to worry about money! Listen to them it works!!!!

[@kiariowhippin]

Dang shouldn’t you guys be retired already

[@rodneydenlinger8890]

​@@kiariowhippinread her comment again. He is disabled and she retired to care for him.

[@margiemurray1100]

The more I listen to these videos,the more I realize howany Americans are wacko when it comes to money! This does NOT happen in Europe !

[@gsxrgirl2007]

@@kiariowhippinyup, she explained that. They haven’t worked since 60 & 56. Sounds like a good age to me.

[@Albert12893]

Done the same .I totally agree

[@naomirachel9161]

Rachel’s heart stopped for a moment when she heard 4 million 😭 mine too tbh

[@kendrapratt2098]

I was having a little trouble breathing hearing this, honestly!

[@MiraMira0ntheWall]

I saw that!!! My inhale was deep 😂

[@annaelisavettavonnedozza9607]

All of our hearts stopped

[@joey7253]

It’s not 4.5 mil in debt.

[@jordansimard]

Its litterally the title, wym… plus they have 5m in assets lol, relax

[@ihaveadreamformykids4400]

The homeless person with $0 is in much better place than them.

[@20maxilo]

Unfortunately yes

[@bigstar66]

Dave Ramsey stans would rather be homeless with no cash than in debt.

[@cryptidian3530]

@@bigstar66 No sane person would want to be 4.5 million in debt.

[@bigstar66]

@@cryptidian3530 sell the house, cars, warehouse and pay off the credit cards and you’d be debt free with like half a million dollars in cash. But sure, homeless people have it better.

[@bigstar66]

@@cryptidian3530 they can sell the warehouse, house and cars, use the sales to pay off the debt and they'd have hundreds of thousands of dollars. But sure, be homeless.

[@JohnDoe-td3xx]

The business is done when you can't pay your employees

[@jasonleatherwood2172]

Yeah past done

[@JayWerx]

Yep, he better hope physical harm doesn’t come his way.

[@tamedromantic9924]

​@@JayWerx now why would you go and say a thing like that?

[@kamarwashington]

@@tamedromantic9924Because not paying employees puts their livelihoods at risk.

[@DatS1ck_LML]

@@tamedromantic9924owners get shot cause of it more often then not

[@tessaoshea5697]

I am so proud of my husband. He asks me everytime he makes a financial decision even though he's a professional financial planner and i can't add up straight.

[@elizabethallen4353]

You are good team TOGETHER!

[@lisaroper421]

That's a keeper!

[@cmonsta27]

Communication. Bless 🙏🙏

[@snowjae9380]

He’s a keeper!!!!

[@InStevenWeTrust]

Let him know not us! 😊

[@malknowsitall]

This is insane. There is no more discussion, sell this business and get a job sir. It failed.

[@cannednolan8194]

It has not failed it has hit bumps in a road. Just the payment on the warehouse is 26k a month. But the warehouse over extended him.

[@fahdh]

​@@cannednolan8194 if you are drowning in progressive debt to the point you can't make payroll, unless there is a turnaround within a month at most, the business has completely failed and needs to be sold. Breaking the law by not paying employees is not acceptable.

[@ChrisCardenDrums]

He made a HUGE mistake buying a warehouse that's probably way more than he needs. Luckily, they've got just enough equity in it where they can get through this by the skin of their teeth. Another couple hundred grand in debt, and they're bankrupt no question. He needs to sell it and use the equity to clean up this mess, rent a warehouse that's no more than 20k a month, and move WAYYY down in BOTH their cars. They can make it. It'll cost them that half million in equity they have in the warehouse post closing costs and stuff, but they'll get there.

[@notpublic8961]

Sell it to who? I think you meant, file for bankruptcy.

[@gadriver]

@@cannednolan8194bumps on the road ? The guy failed to pay his employees and still not sold his cars. It’s over, this guy is an employee

[@ij1376]

If the IRS is angry about delinquent taxes, I doubt the business is sustainable any longer...

[@carpediem6431]

🎯 also different levels of IRS tax ‘issues. ‘ Clearing 80 grand and not paying the appropriate income or business tax is one level. Taking in tax on behalf of government (state sales tax etc.) and NOT submitting it, is a whole other level.

[@mikedoyle5901]

Sell everything and get a studio apartment. You don't deserve all your expensive lifestyle. You survive on debt. House of cards has crumbled.

[@DynAmisch69]

Jealous because you’re a loser that could never?

[@johndone8045]

Think they were doing good before, the house worths 1.1 and first mortgage was down to 400k, they took another 400 for the warehouse

[@amireallythatgrumpy6508]

@@DynAmisch69 If you were listening you'd realise the caller is also a loser that could never but did anyway.

[@1337Jogi]

In many parts of California 1.1m IS an apartment or a very modest house. One that he des not really own if he has 800k mortgages running. Depending on when you bought it and with what interest you could be worse off selling the thing and renting. I am not from the US but I though renting prices in California are wild.

[@theguyonyoutube4826]

A 1m house in Ontario is about average, expensive lifestyle idk

[@nailatiyllufm7325]

I’m sorry but her head wasn’t in the sand. She has a million dollar home and $140k in cars but is asking her parents for over $100k? She is an active participant in this whether she admits it or not.

[@gordonshumway7465]

Sounds like she was just happy living an apparently wealthy lifestyle while being massively in debt. Hey, as long as the neighbors are impressed!

[@RandomNoob1124]

@@gordonshumway7465right 🤣

[@thomasdalton1508]

The point where you shut a business down is the point where you can't make payroll. You can't have people you work for you if you aren't 100% sure you are going to be able to pay them for that work.

[@manoftomorrow5987]

Facts. He would’ve had to have exhausted all the line of credit he would’ve had with the banks. His business must’ve been cooked at least a year ago.

[@barnabusdoyle4930]

Not being able to make payroll is definitely a bad sign for any company, however there are plenty of situations where that is only a temporary thing. The only way for that company to be able to make payroll again and get that back pay made up is to continue running the company. Shutting the company down is a 100% guarantee that payroll will never be made. Of course that doesn’t mean that you should stick with a company with this problem. There are a lot of reasons why this could happen, from vendor issues to bad management.

[@thomasdalton1508]

@@barnabusdoyle4930 That's why you have to shut things down before you are unable to make payroll. You should always have enough cash on hand to pay the current month's payroll plus severances - ideally several month's. That way, if something goes wrong you can wind up the business in an orderly fashion. The way businesses usually ensure that is by having a revolving credit facility with a bank, but if you are like Dave and have a strong aversion to debt you can do it by holding cash reserves. If your business is large enough to be audited, this is something auditors will ensure you do as part of signing off your accounts on a going concern basis. You should still do it if you are a smaller firm, though.

[@taylamayde]

Took me a while and rereading to know exactly what you said but very true

[@thomasdalton1508]

@@taylamayde I do tend to use a lot of double negatives!

[@tracyaf6084]

I love Rachel smiling at Dave doing his impression of her mom. It’s so wholesome how he speaks of her ❤

[@JudePi-jx7yo]

It sounds cringey but she seems to genuinely think it's funny so it's said out of love... I guess.

[@snowjae9380]

I love this

[@OUTDOORS55]

If a company ever misses paying you your paycheck, IMMEDIATELY find another job. Not only will they go under, but they will take you down with them.

[@webbie1891]

Living way above your needs and wants is the recipe for debt

[@johnwilburn]

Caller: “4.5 million in debt” Dave: stone cold Rachel: may have pooped just a little

[@HanSDevX]

Her eyes wide opened lol

[@thabsmkhize2481]

Yeah Dave’s reaction took me by complete surprise 😂 I was more like Rachel

[@mahadali619]

Because Dave has been there and done that

[@gearhead1308]

Can't stop laughing

[@gracie7389]

😂 Dave has been there before so he wasn't phased

[@cluckieschickens]

Sell the home, sell the cars. Sell the business. Pay off your debt. Live within your means going forward.

[@Dogwalker447]

Or they just sell the warehouse… it’s like 4mill you sell the mortgage you get the 4 mil liquid and you lose that portion of the debt and I’m sure it was over 500k so that’s all your debt gone by just selling the warehouse…

[@jinorimo6090]

@@Dogwalker447 True. You’d get $600K after taxes. Pay off all the non-mortgage debts and you still have approximately $100K to find a different profession or make it a one man show:

[@Shay-yg7nm]

This is the craziest call I've ever heard.

[@jet4415]

Whole other level from the usual under 100k debt.

[@MichL_71]

I'm in South Africa and R4M in personal debt would blow my mind, now x that by ~20 for the exchange rate and 🤯🤯

[@tatianastarcic]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[@JohnSmith060]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@ChristianKelv]

This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?

[@KarenLavia]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@ScottKindle-bk3hx]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@KarenLavia]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@martinreynolds5905]

He committed financial infidelity by taking out mortgage without her knowledge

[@hiddenprofits216]

He couldn’t legally do that. She knew just didn’t care. A amazing submissive wife.

[@tduck828]

She would have had to signed for this

[@Blittsplitt5]

​@@hiddenprofits216I wouldn't call her amazing

[@random-nz7dy]

She didn't say she was unaware. It sounds like she did know, She was just going along with everything.

[@privacyplease1556]

@@tduck828not if her name isn’t on the house

[@hongliennguyen8839]

Besides the 2 mortgages (house and ware house) they have almost $500k in debts: Credit cards $120k Personal loans - $115k Property taxes- $100k Car loan - $140k

[@mysticquetzal87]

and she said 3 years of unpaid income tax I think?

[@inthebooks3947]

They got bout 500k in equity

[@HanSDevX]

All that in 6 years since they got married.

[@mattesser5027]

How do you amass 100k in property taxes, even in California? That's gotta be years. How has the city/state not come for them?

[@1337Jogi]

Apart from the moronic cars most of it could be due to the business.. I am guessing not only one 400k mortgage but also the personal loan and maybe credit cards are for the business.

[@Christina-fk9ke]

Imagine working for a boss that has a million-dollar home and over $100,000 worth of cars and he tells you he can't afford to pay you. TWICE. IN ONE MONTH. I'd be so gone! Unfortunately, not everyone has that luxury. He's "pushing through" while the people who are helping him live out his dreams suffer. If the business does survive, he's got got his dream job and they're still catching up from his poor management. He should be ashamed of himself.

[@cornishpasty4344]

Yeah that business isn't recovering with no employees.

[@MisterNightfish]

Yea, this is ridiculous. On the flipside, if I was the boss, I could not in good conscience have these things while not paying. I would downsize first, before letting my people go without pay. Makes me wonder about these people's character, to be honest. Like, their employees all got bills to pay, too.

[@johndone8045]

A mil house in CA is nothing..... their cars are the problem, and his management also

[@dr_pinna543]

$1million house in CA is a $400k house in Texas.

[@ObiBassoholic]

1.1 million isn’t multi million

[@JoeyNYSDnomad]

In LA they all look rich, yet they do not have 2 nickels to rub together.

[@New-bw4kz]

So you would think

[@alexlopez5800]

Exactly. That's the LA lifestyle 😂

[@jacquelineglitter4328]

I read that you need 2 million a year to live on and that was before inflation. So probably 3 or 4 now. I wouldn't want to live there. I drive an old vehicle and don't get work done. I never keep up with the Jones but my home is almost paid for and my credit card debt is 30.00.

[@1dingerr]

​@@jacquelineglitter4328 uh what. Cost of living in LA is not 2 million.

[@heyjude2109]

So true.

[@AnthonyMcNeil]

His imitation of his wife was hilarious. Seeing Rachel laugh shows that the imitation was on point 😂😂🤣

[@noobboy81]

I love watching these. They make me feel A LOT better about my financial situation.

[@coderider3022]

This is a bad one.

[@enricopallazzo3244]

Lady your head is in the earth’s core.

[@creolelady182]

FACTS!

[@acd1168]

😮‍💨😵‍💫

[@times7171]

that made laugh

[@tennysoneffie6943]

I believe his head is so far up his ass that he can see daylight!

[@thewheeldeal8439]

I think it poking out of Australia lol

[@JoeRNNE1]

Wow. This is one of those "my life ain't perfect, but boy it could be worse" calls. This guy sounds like an out of control spender and I don't think he'll change. Best of luck to this lady; she's going to need it.

[@kevind8752]

Doing the same thing and expecting a different outcome=insanity

[@BREEZYM6015]

Like me going to the gym and expecting to gain muscle mass when I'm as skinny as a rail. 😂

[@TheOutsider840]

I hate this quote, because perseverance can be the right thing to do. It disregards that the doing action may not be flawed, and that other external factors may be at play influencing the outcome. In this particular scenario however, it's definitely the wrong thing to continue.

[@nonenow857]

​​@@TheOutsider840 So do I! It doesn't apply in all cases. If I save regularly I'll have wealth eventually. Not insanity 🤔🤑

[@ConnorJara]

Kevin, what an insightful comment. I'm sure you are the first to think of something so profound.

[@kevind8752]

@@ConnorJarahaha, no way kemosabe.

[@kendrapratt2098]

Anyone else ever feel concerned for the family’s safety in situations like this?

[@paulk8473]

You mean like the guy blowing everyone up due to stress?

[@fusionreaper]

I would be if she files for divorce

[@elizabethallen4353]

YES

[@stephmeister0714]

@@paulk8473 that or an angry employee who hasn’t been paid for a month 😬

[@Observer100-cn7gv]

No

[@BirdDogey1]

I used to work with small businesses on their tax issues in California. Starting and owning a business is supposed to be just that...business. But for people it tends to be very emotional. They tend to throw good money after bad hoping things get better. It is akin to chasing the loss in Vegas. There is a time to cut bait in order to preserve your personal assets. Smart people don't lose personal money when the business isn't doing well.

[@SweetlyHome]

I couldn't imagine this being my life. I'd be selling everything, moving, and closing the business stat. What a frightening nightmare.

[@sirheisenberg4459]

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.

[@belobelonce35]

Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.

[@MarcyLoccy]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.

[@SavannahMitchell-b3d]

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

[@MarcyLoccy]

REBECCA NASSAR DUNNE is her name. She is regarded as a genius in her area and works for Equity Services inc. She’s quite known in her field, look-her up.

[@antoniaribeiro8073]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@David-wo9un]

Love these two together; you can see by the expression on Rachel’s face that she has so much compassion for this situation.

[@deirdrekiely6187]

Her voice is shrill though....

[@OspTheOG]

suddenly my debt doesnt seem so bad anymore lmfao

[@TCR2025]

This is another example of trying to keep up with the joneses for no reason.

[@Hegelian10]

You're right, keeping up with the Joneses is the root of financial instability. Don't be a slave people.

[@joshuamartinez7113]

@@silentnot4812you will never be happy unfortunately in life. Nothing wrong with wanting more for yourself but it is wrong if it derives from envy.

[@HewyHikes]

@@silentnot4812 horrible mindset tbh

[@BREEZYM6015]

I stopped trying to keep up with the Joneses in 1990. 😂

[@BREEZYM6015]

​@@joshuamartinez7113You can be happy in life, just not by chasing after more money and buying stuff that brings a temporary high. It's a constant cycle of never being happy in that regard.

[@johnpublic5169]

I like “the rest of the story” in the second segment. I also enjoyed seeing the grace displayed by DR because he knows what it’s like to be “that guy” like this lady’s husband is. Let’s pray for this couple that they can build a stronger marriage as they navigate these challenges.

[@cuz129]

One of Dave's best! Been married 46 years and that's how we do it too.

[@gardenofe12]

The wife is partly to blame too - she turned a blind eye to everything that is going on in her life by NOT checking her bank accounts and discussing the finances with her husband. You NEED to know where ALL your money is going and what’s COMING in at ALL times !! Don’t rely on your spouse to take care of the finances !! BOTH of YOU need to check in with one another !!

[@linhaton4957]

Yes, using equity from your home to use for a business warehouse is a huge problem.

[@pioneerprepper2048]

She admitted that in the beginning, it's not necessary to bring up. She's the one working on fixing it which is what's important

[@nailatiyllufm7325]

@@pioneerprepper2048it sounds like way more than having her head in the sand. Deciding you want a million dollar house and $140k in cars while asking your parents for over $100k loan? She’s not just blind she’s actively participating.

[@1dingerr]

In my marriage, I manage our finances and my wife knows how much she can typically spend per month. I'm not juggling million dollar businesses or houses, but I think a dynamic of one spouse handling finances can work as long as that person is responsible and transparent about money issues.

[@heyjude2109]

It takes two to tango, so the financial health of the family is their both responsibility.

[@Lucasroxx33]

I am with Rachael on this one. His financial practices and incredibly irresponsible business decisions all feel incredibly deceitful towards the wife. The wife said "he's just so motivated" and that immediately set off alarm bells for me as someone who either believes or was assured that the husband managed finances well, and that he is a master of business. From the way she was talking, It kind of sounds like he decided that he was going to handle the family his finances long ago so that she could just stay at home and be a mom, so he purposefully left her out of most financial disclosure until he absolutely had to bring her in on it. Like, in my family, my mom handles the finances, but her and my dad had to come to agreement on any major purchases. Financial transparency is so important, to the point where even if one person is managing all the money, they need to have complete disclosure and veto power if something seems frivolous or irresponsible.

[@isabelm5438]

Everyone is forgetting that they’re in LA, so 1.1 million for their house is not that much there!

[@noahrose1able]

Crazy that a homeless guy is doing better then them.

[@reese85]

Far from the truth! I would rather be in their situation vs homeless anyday

[@BREEZYM6015]

Or me making $60k a year. 😂

[@BREEZYM6015]

​@@reese85Not me. That's too much stress.

[@deirdrekiely6187]

Better *THAN* not then

[@deirdrekiely6187]

​@@BREEZYM6015 Boo hoo. Cut your spending and then come cry.

[@nancyskilton136]

I was a nurse for a medical needs child. His parents lived in a beautiful house with top of the line everything, ate out 4-5 times a week, drove expensive cars, had a membership to the fanciest country club, and mom shopped constantly. Dad's subcontractors for his construction business were constantly coming to the house asking for payment, sheriff deputies came to serve papers and the postman brought registered letters daily. Many became indignant with me when I explained that I was not a relative and couldn't accept any of their papers. Parents just laughed when I told them who stopped by the house that day. Fortunately, my services were paid thru state insurance and I didn't have to rely on them for my salary!

[@pinkyshoes22]

Being $4.5 million in debt means the wife can no longer afford to be a stay at home mom. It’s time to roll up her sleeves and get back into the outside job market. She seems pretty smart so since her husband can’t hack it, it’s time for her to take charge and move this train forward

[@caprumra782]

When I was growing up, I was raised in an household where men work and women managed the home and finances. Most men know how to make a kill but we can't make it last through winter like eifet can. That's why it's important to get a wife and not a tramp who only knows how to spend money.

[@CCrispyyy]

It all depends on her job experience though. Especially in CA, child care is INSANELY expensive. Sometimes it cancels out any money she would bring in

[@Iwantallmymoney2024]

No she needs a divorce! No rolling my sleeve to save him! I’m saving my kids and I!

[@brigitteadams5679]

Sell everything, start over

[@birdie4263]

if I found out even ONCE that my boss, who owns 6 figure cars and probably a mansion, can't afford to pay me my salary the first thing i'm telling him is when he'll sell the cars/mansion cause I'm getting my damn money no matter if I have to sell those cars MYSELF!

[@andidede3653]

The cars yes you have a right to be upset but in all honesty a 1.2 million dollar house in california is probably 2500 sq ft. Not a mansion by any definition. I think he just stretched himself to thin with all these loans and making payments and it seems clearly he was trying to keep this afloat by hoping it would turn around.

[@InStevenWeTrust]

You think 1.2m gets you a mansion in California?😂😂😂

[@MarcoAshford]

I’m behind on my pay check for a few months this year. If I switch my job I won’t be able to stay in US. Sometimes you don’t have a choice. You are getting spoiled, life is too good.

[@270Winchester]

​@@andidede3653I don't know how people can look at California home prices in even consider it. Where I live $1.1 million would easily get you a 6000 ft² house with 30 acres or a normal sized house with over a hundred acres. On Zillow it says the same price gets you anywhere from a 1200-2500 ft² house.

[@Anniekitty1016]

Not you having the entitlement to commit a crime 🤭 *his* cars will land you in jail if you try selling them.

[@freddybastiat8299]

I do not envy folks trying to run a business in California

[@lisaporter3301]

Psst--there are tons of businesses in California--most very successful.

[@tommyjones6866]

I run a business in California. Pretty easy for me. I live within 50 miles of thousands of millionaires. Business is never slow...my clientele always have tons of disposable income. 10% more in taxes is nothing when my revenue is double what it would be in a red state.

[@htorres11]

Can you imagine living in a nasty trump loving red state (Mississippi, Tennessee) where half the people are living below the poverty line and hillbillies like Ramsey can only bray about “ the regulations”! Newsflash the “ regulations” are there to protect folk from predatory business practices and unregulated malfeasance from unscrupulous profit at all cost boobs!

[@freddybastiat8299]

@@tommyjones6866 Good for you. Seriously, always happy to see entrepreneurs flourishing. So do you think its strange that companies have fled Ca? HP, Tesla, Exxon, Schwab, and Chevron to name a few. Plus all the folks packing up and leaving ~400k net loss every year. Why do you think?

[@dog7881]

@@tommyjones6866Yep because millionaires only live in California lol

[@Mac-oj1vm]

No one should forget this is, "The family" that people will see and be envious of. If only they knew it was a house of cards

[@seraphilight]

I love you for pointing out issues in the marriages that are possibly abusive, and being concerned for them.

[@africanqueen1655]

I think Dave should have asked her to have her husband to call. I would have love to hear the type of business and if it could be saved.

[@LetsGo6009]

Thats a great idea, its turn into a larger segment and we’d get alot out of it

[@alexlopez5800]

4.5 million in debt. In this economy? Good luck trying to salvage -4.5 million overhead on that mom n pop business.

[@LetsGo6009]

@@alexlopez5800 i think she said the warehouse they could sell is worth like 4m so its not that unrealistic to dig out of

[@elainestewart6295]

I think husband in denial. The business is basically bust and if she doesn't sell they go bankrupt

[@SoUnDMaN831]

I wish Dave would have asked what kind of business this is.

[@jsimmons9969]

Probably sneakers or something like that.

[@robloxvids2233]

Crossfit probably lol. Or RE "flipper."

[@SoUnDMaN831]

@@jsimmons9969I don’t know, but the husband felt the need to buy a warehouse. That’s a lot of space to fill there.

[@mominthe209]

That’s what I wanted to know too. It seems it was successful in the beginning and that’s why he bought the warehouse. When business slowed, the lifestyle had to continue.

[@thirdcoast-nx7jx]

@@SoUnDMaN831 legal cannabis I bet

[@jasminebaby3375]

Driving around 140k worth of car knowing you owe your mother and IRS money, alone makes me think this people are special.

[@Anwarmeahkat]

The fact she calls her cars ridiculous and they're not on sale is just laughable

[@vicavell1]

Sadly someone is looking at the house and the cars and think this couple is killing it

[@stargatelover3]

To be in 4.5 million dollars in debt and not be some sort of celebrity is truly mind boggling. My question for the wife would be: How did she not know about this? Was there any signs of maybe living above means?

[@thomasdalton1508]

They have $4.5 million of debt, but that's mostly mortgages against over $5 million of real estate. That's not particularly extreme.

[@stargatelover3]

@@thomasdalton1508 Ohhh okay, I thought that was a lot. I’m not exactly the most educated on this stuff.

[@deirdrekiely6187]

​FYI - Some women let their husband's handle the finances. You can see why that's not usually a good idea.

[@thomasdalton1508]

@@deirdrekiely6187 It's fine to let your spouse handle the finances. You just need to stay informed about what they are doing so you can intervene when you need to.

[@BREEZYM6015]

​@@deirdrekiely6187I had to get a separate checking account because my wife was spending above our means. Now I'm doing 1,000 times better financially. Letting the wife control the finances can be just as disastrous. 😂

[@emmajones7560]

I’m 22 and love these videos. They way the interact with the callers is amazing, tough love! Also it’s a big warning for my future financial and romantic relationships!

[@patriciamiller9317]

You're very wise. Being in a relationship with financially irresponsible person can destroy your financial future. Watch out for redflags.

[@tommyjones6866]

I agree with Rachel. Taking out a 2nd mortgage on the house without telling your wife is wild. Thats beyond just poor money management. You don't touch the home your family sleeps in.

[@alexsteven.m6414]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

[@KatyaSantos-g4c]

The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.

[@Tanner-c2m]

The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.

[@type-r3x]

who is your advisor please, if you don't mind me asking?

[@Tanner-c2m]

Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@vanessahopkins-g5y]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@deer9311]

The best part of this video is @3:09. The look on Rachel’s face and how Dave’s face made no facial expression🤣🤣

[@jornada.del.muerto]

Dave heard it all before lol

[@vanessalangston6126]

Dave, I really appreciate the way you gather all the information, and become brutally honest with her. They really do need help.

[@williamho7393]

I have anxiety hearing the $4.5m debt

[@skeezix8156]

I don’t even like $4000

[@webfreakz]

I can not imagine making $22k monthly payments 😮

[@20maxilo]

I get scared of anything over 5k .. so 4.5 is not 🚫🚫

[@Observer100-cn7gv]

Why? Is it yours? Are you the one trying to live beyond your means?

[@PitManenuver]

You hear “$4,500,000 debt”. I hear 3,500,000(warehouse) $880,000(mortgage) +$140,000(cars) +$110,000(credit cards) -$4,100,000(what the warehouse is worth) -$1,100,000(what the house is worth) -$100,000(aprox value of cars). Meaning they have a POSITIVE net worth of $670,000. Or a lot better than most of you.

[@Todjcam]

They’re driving “ridiculous cars” now suddenly she wants to start asking questions 😂

[@EverElia]

Right?! 😂 the cars aren’t the only thing. Once he couldn’t make payroll, EVERYTHING became ridiculous.

[@tommyjones6866]

Any man who has ever been the breadwinner knows exactly how this goes. Wife has no idea about the finances but keeps spending money like crazy. Every time you bring it up it starts a huge fight...so you stop bringing it up. You find ways to keep bankrolling the lavish lifestyle you guys are now accustomed to. Eventually, your house of cards falls and your wife takes the kids and leaves your broke @ss 🤣🤣

[@shanreta]

@@tommyjones6866 Good, Loser. 🤡

[@sonofben3322]

@@tommyjones6866 doesnt sound like the guy has any idea about finances either. not sure if this story fits your narrative here

[@pauljansen6650]

+ a house over 1m.....everyone will give the guy a hard time and rightfully so but she's certainly not innocent and probably expects that lifestyle

[@dpc0809]

Ramsey showed his experience by not reacting until he heard the numbers. Owes $.88 (H) + $3.3 (WH) + $.12 (CC) + $.115 (PL) + $.1 (T) + $.14 (C) = $4.52 M. If sold H & WH for $1.1 + $4.1 and replaced the cars with 1/2 value $.7, = $5.9 M So that gives them +$1.38 M before taxes and ready to start over. Not bad. Really, they don't even need to sell the house, just selling the WH & trading out the cars at half value will more than cover all their debts plus likely make up for the missed payroll if they close the business.

[@tyndni]

These people are actually extremely lucky. They still have equity in two properties and they can sell literally everything and start over. You could not do this in any previous market crash especially 08.

[@bradleygraves5915]

Look at Rachel's face at 17:21 when the lady says $4.5 million. I think her heart skipped a beat.

[@MomoHitsujiOwO]

I think my heart skipped a beat too 😂😂😂

[@1981lashlarue]

@bradleygraves5915 17:21 is the very end of the video?

[@UncleMichaelable]

At 17:21? At like 3:00 mins.

[@lynnebucher6537]

When I was in college, I lost 3 different part time jobs and my last paychecks when my employers went belly up. They didn't even have the decency to let me know. I showed up for work to find a locked door, and one of them was chained shut with a deputy standing outside. Really fun when living in poverty.

[@mikesawyer4707]

I was in trouble, I had been for some time everyone I trusted to talk to about my dept issues strongly suggested file bankruptcy. I did not feel that was the good choice. I knew what I had to do, sell everything and payoff my overdue bills some bills were more than I had but I did negotiate a lump sum pay off. I had just enough to buy a used car I have my home yet but little else. Thank the good lord I woke up and took control of my bills and stopped ignoring them. I hope my story will help someone out there. 😊

[@marysaltlife1427]

Mike, good for you. So glad you turned it into the right direction.

[@walters2405]

Bots are ruining the comment section 😢

[@undecidedtoystore3003]

What?! You're not a fan of the random, irrelevant comments about how someone is blessed, made tons of money, and are ready to help others... I love finding these comments with their 30+ replies XD

[@victorbaird8220]

You are so beautiful 😍 😊

[@aliceedinburgh9203]

Dave's face at 1:15!

[@joseroblesj]

I saw that!!!!

[@tammi6174]

I worked at a small company where they weren’t able to make payroll every two weeks for a several months. It was sporadic and scary as a single mom not having consistent pay. But frustrating watching him show up to work driving his convertible Mercedes or his fancy Harley and ordering take out food for lunches while the staff wasn’t being paid. Luckily I found a great job and left on my terms.

[@yomoma6141]

They could just sell everything and walk away with no debt and like $500,000. Buy a different house with cash and both just work normal jobs and have no debt, life will be easy.

[@rachelmaddowswife8713]

Oof, at least this woman is taking responsibility and trying to think about the situation now. My mom was a SAHM and watched as my dad took on more and more debt for new businesses after the old ones failed. When the banks stopped lending him money or approving credit cards, she agreed to let him take out new debt in her name. It was a freaking nightmare and I was so angry at her for not being the adult in the room and putting her foot down. Fortunately they were able to file for bankruptcy and then got some inheritance, but our childhoods were so poor and stressful, it really messed up my siblings and I.

[@missinde0723]

WOW I can't imagine taking a 2nd mortgage on my home!!!! Just for this reason . . . . Good Luck to Katie!!!

[@kathleenweidmann3100]

We owned a home in the Bay area. Purchased for 170,000 in 1987, sold for 525,000 in 2002 & saw it online for sale at 1.1 million a couple of years ago. It was a 1950's tract home, 3 bd/2ba, we renovated & added 1 bd/1 ba. It backed up to a busy road & eventually a sound wall was built. These numbers may sound like they're living large. They are not. It is expensive to live in CA.

[@DarkbaseTTV]

Once I heard about the credit cards and car debt, I knew there was no survival for this business. The guy has a business in order to spend money on personal luxury, nothing else

[@Johnyrocket70]

When I was a kid growing up in 1970's my grandfather told me, if you can't afford to buy some thing's in cash you dont need it & save your money. I still live below my means even with a good income. I could of bought a new Mercedes every five years. Instead I bought pre owned leased car for $14k cash in 2005 & still drive it. The $$ for the 4 new Mercedes I could of paid for in cash is still in the bank. Not wasting $$ on cars gave me security & a extra $300k towards retirement or retiring e few years earlier.

[@HerbertNorman-r6u]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@CollinsShappell]

I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

[@SamViens]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation

[@AlisonDiezani-s6p]

I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields

[@Gregstuckey]

In the 50's my Dad worked a modest job, Mom stayed at home and raised the kids, and they lived a nice middle class lifestyle including owning a home. Nowadays both I and my partner works and can barely afford to make ends meet. Soon the kids and family dog will need to work to keep this household going. It's the destruction of the American dream right before our eyes.

[@CollinsShappell]

Tracy Britt Cool Consulting was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Tracy.

[@theclothingcottage]

All of that omission is the same as lying in my opinion. I went thru something similar. He may not need to explain the day to day mechanics of his business but when he's bankrupting his family, she has a right to know those details.

[@minervagalvez4748]

SHE DIDN'T QUESTION HER LIFESTYLE WHEN HE WAS LAVISHLY GIFTED HER WITH EXPENSIVE GIFTS AT THE BEGINNING OF THE COURTSHIP/MARRIAGE 😂😂😂

[@pmwyy]

Wow this man has run his business and family into the ground. She has the patience of a saint.

[@DanielNoahD3w]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

[@JamesOliverr7s]

The deeper your investment roots, the stronger your financial security will be in the future.

[@SebastianNoah5e]

Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.

[@MatthewAidan4ns]

I would love an introduction to an adviser who can help me strengthen my financial roots.

[@SebastianNoah5e]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.

[@MatthewAidan4ns]

Thank you for this amazing tip. I just looked the name up and wrote her.

[@BJ-bc7sl]

The car debt makes no sense! Those that think Drive a fancy car to make you feel successful will never be successful. He’s got debt to the irs and a second mortgage on his home plus all the other stuff. Sell the vehicles and get a $15,000 car and save years of interest and penalties. 😢

[@James_Hough]

If you can't meet payroll....that's a sign of the end. Also, it's a solid bet that if you can't make payroll, he probably stopped paying withholding and other payroll taxes before that. There are very few circumstances where a business can survive these things.

[@Klara906090]

I have literaly 0 empathy for those people.

[@jakefranchise7463]

Sell the cars, sell the house and start paying off these debts, salvage what you can. Both will have to get jobs.

[@gpi715]

If they do sell the properties, they can clear all debt and still have $545k cash. Eventually, just sell the warehouse and have only a mortgage on the house with 50% equity in it.

[@JustinCase780]

This biz model isn't working. Excited to launch my bouncy house business which is really going to take off.

[@carolines3953]

If they sell the warehouse, they’ll net $1-1.2M after costs. They can sell the cars, pay off those loans, get two junker cars. Use the warehouse proceeds to pay off debts (IRS, CC, parents, mortgage). The proceeds from the warehouse will go a decent way towards paying down those debts. Whether or not the business is viable - I agree with Dave, he needs to explain his business plan with his wife, or make the decision to cease operating and walk away.

[@greendalf123]

As someone who also had a scary experience with money (not nearly this bad) just ALWAYS talk to your family about taking out a loan, mortgage, major purchase whatever.

[@KSMO1031]

I had a friend that was in a similar situation. He was a business owner with a $1.5M home. During the 2008 financial crash he lost his business due to banks no longer lending to him. Overnight he was bankrupt since he was spending money faster than he was making it.

[@Desertbiker617]

Good golly! This is one of the scariest stories I have ever heard here!😱

[@SJ47668]

It’s disingenuous of the wife to blame the husband 100%. “I didn’t know” is not an excuse - she has lived at home with her head in the sand - betting she has been enjoying and living the life he provides - and doesn’t care what the husband has had to do to keep them in that style. The poor man has probably been beside himself for a long time while she just carries on carrying on.

[@Polo22546]

I honestly watch these videos just to be able to realize that I’m in better financial shape than I thought. I couldn’t sleep if I owed this much money!

[@SauronOfMiddleEarth]

Being “in love” is not the gold standard of choosing a mate wisely.

[@ligiization]

Stay at home mom fixing her businessman husband’s financial mess. Unbelievable!

[@John-ys4pg]

I wince at every call from a stay-at-home mom who's worried about finances. Staying home with children is fine until they start school. At that point, taking them to school and picking them up one minute after dismissal and being available for every single activity is a lifestyle decision.

[@deathbysonar]

Ahh, how nice it feels to be debt free in my small cheap 2-bedroom apartment. My goodness.

[@ernestogalvan143]

Surviving not living.

[@ST-rj8iu]

@@ernestogalvan143 And you think they are living? It is complete disassociation to be able to sleep at night. They are about to lose their house. There are people that live it up knowing they are going to end it all with a bullet. This could turn dark quickly for this family. foreclosure can cause despair

[@ernestogalvan143]

@@ST-rj8iu never said they were living. Only the commenter is surviving

[@blackbutterfly233ify]

@@ernestogalvan143how is the commenter surviving? They are debt free