Ohio caller makes $100,000 a year but claims his salary "trickles out," leaving him $65,000 in debt. Ramsey Show hosts aren't buying it

He called The Ramsey Show for advice (1). Co-hosts Rachel Cruze and George Kamel asked where his money’s going.

“I’m desperate to get out of debt,” he said.

Lance explained that he moved to Ohio from New Hampshire, where he lived rent-free with his parents. Now he pays $1,400 a month rent.

“The rest just trickles out there,” he said.

Kamel said thousands of dollars of income don’t just “trickle out there,” and asked if Lance was spending “big piles of money” on meals out, subscriptions or gambling.

“I don’t gamble,” Lance said. “I have a lot of bills.”

Then he revealed that he was paying off a $25,000 truck and a $30,000 Harley, both of which he bought brand new. He was also paying down an $8,000 personal loan.

Given that $55,000 of Lance’s $65,000 total debt is from the truck and Harley, the hosts told him to sell his truck and motorcycle and put the earnings straight towards his debt.

“My only fear, Lance, is when you do all of this, and it does give you margin and frees you up, that you’re gonna go back to this spending habit that you’re in of not knowing exactly where your money is going,” Cruze warned.

“I want you to be able to know and control your money and where it’s going.”

It’s easy to think that hitting a six-figure salary would be enough to get out of debt, begin saving and win financial freedom. But that might not be true for some people. Or even a lot of people.

Juggling big pay and big debt

A survey by BHG Financial found that 62% of earners making $300,000 a year struggle with credit card debt (2), and many other six-figure earners still live paycheck to paycheck (3).

Credit firm Experian says consumers owed a staggering $18.33 trillion as of June 2025. (4). Millennials owed an average of $132,280. Gen-Xers carried the highest average debt at $158,105 (5).

By 2024, Americans were paying an average $1,224 a month towards their debt, with mortgages taking top spot followed by auto loans and personal loans.

Like Lance, many consumers haven’t worked out a monthly budget, especially one that accounts for inflation. That means they end up resorting to credit cards to cover everyday expenses like gas and groceries — or emergency expenses like a car repair or a hospital bill.

“A consumer should look at how much they’re making and what they’re spending,” Beverly Anderson, president of global consumer relations at Equifax told CNBC (6).

“Knowing exactly where you stand and what you can afford may help you better manage financial commitments.”

People at all income levels need to budget

It can be overwhelming to start paying down your debt, but there are ways to see that balance go down and build momentum.

A great way to start is by creating a budget and becoming aware of all your expenses, down to the last dollar, so you don’t have to guess how much you have to spend each month.

List your take-home pay, your essential expenses, and your monthly debt payments, and then identify where you can tighten up, such as eating out, shopping, or other recreational activities.

When paying down your debt, decide what strategy works for you: do you have several small loans you want to see go away quickly, or are you focused on saving as much as you can over the long haul?

With the debt snowball method, you target your smallest balance first for a quick win.