‘You Guys Make Too Much to Be This Broke’: How Rachel Cruze Exposed a Family’s $3,500 Monthly Spending Leak Joseph called The Ramsey Show with a problem most families would envy and recognize.
He and his wife earn about $340,000 combined
Their daughter is heading to an SEC school, and after merit aid and in-state tuition, the family still needs $30-some thousand a year. They already carry about $200,000 worth of credit card debt and loans with personal loans and HELOC, plus a $4,400 monthly mortgage. Joseph wanted to take a $20,000 Parent PLUS loan to bridge the gap.
Rachel Cruze refused. Her line landed harder than any spreadsheet: “You guys make too much to be this broke.” Quick Read – The Ramsey Show (Rachel Cruze): A $340,000-income household carrying $200,000 in existing debt was advised to refuse a $20,000 Parent PLUS loan to cover college costs, as borrowing compounds the problem rather than solving the underlying spending discipline issue. – Joseph’s family can fully cover the tuition gap through extra work shifts or eliminating $3,000-$4,000 monthly in discretionary spending on subscriptions, dining, and delivery services without taking on additional debt at 9% interest rates. – The verdict: no new debt Cruze is right. Borrowing your way out of an over-borrowed household turns a $200,000 problem into a $300,000 problem.