Aug 26, 2025
When Alex began sharing the details of his financial crisis with the hosts of The Ramsey Show, the 24-year-old from Knoxville, Tennessee didn’t mince words.
“I’m in a very, very, very bad spot,” he said.
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And he wasn’t kidding. After taking out a $60,000 loan to fund his new day-trading endeavors, Alex wound up making about $120,000 in the first three months. But that successful start didn’t last long, as he eventually lost it all before taking out another loan to try and earn it all back.
Now, he's carrying $100,000 in unsecured debt, with roughly $4,000 a month in take-home pay while his monthly expenses total $6,200.
He says he might lose his job with the USPS because he can’t afford a delivery vehicle that’s essential to his contract. And to make matters worse, his girlfriend cheated on him, which has left Alex feeling completely broken.
‘There is no way out of this’
Co-hosts Ken Coleman and George Kamel empathized with Alex, saying he’s gone through a lot of hardship during this ordeal. But as they explained, if Alex wants to get himself out of this financial hole, he’s going to have to pull himself up by his bootstraps and increase his income.
“There is no way out of this, Alex," Coleman asserted. "You're going to have to get a better job or get a second or third job to get the income in.”
Alex quickly mentioned that this ordeal has taken a toll on his well-being. “I’m so tired, I’m mentally exhausted,” he said, but Coleman wasn’t buying it.
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“I’m not knocking or in any way minimizing how tired you feel, because you’ve been through a lot emotionally,” Coleman replied. “But you’ve got plenty left in the tank. I’ve seen people deal with far more than you’re dealing with right now.”
Assuming that Alex is able to increase his income, the pair urged him to prioritize covering his current living expenses — housing, food, utilities and transportation — before worrying about loan payments. Why? Because his debt consists of unsecured personal loans, which means if the debts are sent to collections and go unpaid, creditors may eventually write them off.
Alex's focus, they say, must shift to survival first.
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How Alex can regain control of his finances
The first step for Alex to take is clear: stop day trading immediately. Despite Alex seeing it as a potential way out of his debt, day trading was not the solution, it was the problem. And while Alex may have initially viewed day trading as a side hustle, he was essentially gambling with his money. Turning $60,000 into $120,000 was great, but Alex promptly lost it all, twice.
The psychological toll of this boom-or-bust cycle can be immense, with consequences that can be financially devastating. According to the Social Science Research Network, 80% of day traders lose money even before transaction costs, and fewer than 1% remain consistently profitable.
"You have to cut off access to the thing that ruins your life, which is day trading,” Kamel shared with Alex. “It’s not going to be the solution. You are the solution. You, getting off your butt, working 60 to 70 hours for the next two years. That's what's going to clean this up."
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Kamel and Coleman also encouraged Alex to rethink his living situation, suggesting he end the relationship that's draining him emotionally. “You're staring at failure all day long,” Coleman pointed out.
But changing his living situation alone isn’t enough, as Alex's mindset needs a reset. Right now, Alex sees himself as a loser, but Coleman flipped that narrative.
"You're not a loser,” said Coleman. “You've had some losses and those losses sting, but welcome to the human race. You made some poor decisions."
The co-hosts called on Alex to reclaim agency over his life by shifting his focus from quick wins to long-term effort. Learning real job skills — maybe in the trades, as Coleman suggested — stacking multiple incomes and embracing discomfort for a few years could be the only real path forward for Alex.
Kamel and Coleman also reminded Alex that people with more debt than he's facing have turned their lives around by focusing on income and taking responsibility. This mindset is crucial because there's often no quick fix to getting out of debt, and financial recovery demands action, not dwelling on regret.
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With a writing and editing career spanning over 13 years, Emma creates and refines content across a broad spectrum of industries, including personal finance, lifestyle, travel, health & wellness, real estate, beauty & fitness and B2B/SaaS/tech. Her versatility comes through contributions to high-profile clients like Moneywise, Healthline, Narcity and Bob Vila, producing content that informs and engages, along with helping book authors tell their stories.
