The Ramsey Show Highlights I'm 62, $79,000 In Debt, And Have No Retirement
Mar 3, 2026
A 62-year-old caller with $79,000 debt and three paid houses sparks talk about selling property to wipe out debt. They debate why consolidation often fails and how cashing retirement in 2008 changed everything. Conversations cover rental income, charging market rent or giving notice, timing Social Security, and using sale proceeds to rebuild savings.
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Don't Use Debt Consolidation Companies
- Avoid debt consolidation companies because they mainly pool debts and add fees instead of solving the problem.
- Dave Ramsey says consolidation lets you delay payments and settle later with fees, so handle debts directly instead of hiring a consolidator.
Cashed Out Retirement To Buy Rental Houses
- The caller owns three houses and paid cash for two after cashing out retirement following 2008 losses.
- He used retirement savings to buy property, leaving him with no 401(k) and current $79,000 consumer debt.
Sell A Paid House To Wipe Out Debt
- Sell one paid-off rental to pay the $79,000 debt, keep 3–6 months expenses in savings, and invest the remainder in mutual funds.
- Ken Coleman and Dave Ramsey recommend selling the market-value rental and using proceeds to clear debt then invest.