The Ramsey Show Highlights I Co-Signed A Car and It Was Repossessed
Feb 24, 2026
Christine, a caller who co-signed a car that was repossessed and faced a $14,000 deficiency, shares her income, rent, and debt situation. The conversation covers legal liability from co-signing, auction and deficiency details, housing costs and the need to downsize, and why her debt-relief program is not helping. Practical next steps and budgeting are discussed.
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Caller Co Signed A Car Then Faced Repossession
- Anecdote: The caller co-signed for her ex's car while in a debt-relief program and accumulated new debt after the car was repossessed.
- She reports the car was auctioned and she's being chased for a $14,000 deficiency while still enrolled in a settlement program.
Co signing Makes You Fully Liable
- Do accept responsibility when you co-sign because you are legally liable for the debt and its consequences.
- Dave Ramsey explains the repossessed car's $14,000 deficiency is the caller's obligation after co-signing and auctioning occurred.
Stop Using Paycheck Borrowing Apps
- Do stop borrowing from paycheck-loan apps immediately because they worsen cashflow and debt.
- The caller admits using pay-later apps and living paycheck-to-paycheck, which Dave identifies as a harmful pattern to stop.