I Can Barely Keep My Head Above Water

Summary of I Can Barely Keep My Head Above Water

by Ramsey Network

10m•December 6, 2025
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Overview of I Can Barely Keep My Head Above Water

This episode (Ramsey Network) features a caller, Hannah, a recently divorced single mother of two who is overwhelmed by roughly $200,000 of debt left after her ex walked away and stopped paying court-ordered obligations. She works as a nurse (bringing home about $11,000/month), is juggling two full-time jobs, and is trying to cover childcare and household expenses while servicing high monthly payments (notably a $1,300/month car payment) and a Chapter 13 plan at its max. The hosts walk her through triage budgeting, legal enforcement options, and practical next steps (and connect her with a certified financial counselor).

Key points and main takeaways

  • Debt snapshot (approximate totals):
    • Total debt ~ $200,000.
    • $40,000 business loan (awarded to the caller in divorce; ex was supposed to pay).
    • $40,000 student loans (caller’s).
    • $60,000 car loan awarded to caller (actual resale value ~ $33,000).
    • IRS back taxes (monthly $1,000 payment).
    • Small credit-card balance.
  • Legal complications: Some debts were assigned to the ex by the divorce decree but remain in the caller’s name; the ex is not complying with court orders.
  • Bankruptcy is not a practical fix: Chapter 7 not available; Chapter 13 would require very high payments (caller is at the max of that plan).
  • Psychological framing: Hosts emphasize focusing on what can be controlled now (budgeting essentials) and accepting that credit is already damaged so you can move forward.

Topics discussed

  • What debts are legally hers vs. assigned to the ex and enforcement through the courts.
  • Options for removing her name from loans (forcing ex to refinance) vs. pursuing contempt/enforcement (costly legal steps).
  • Practical car solutions: sell, voluntary surrender, refinance, co-signer, or trade for a cheaper vehicle to reduce monthly payments.
  • Prioritization of bills: four walls (housing, transportation, utilities, food), daycare (so she can work), then debts.
  • Getting professional help: find a better attorney and use a certified financial counselor to run detailed numbers.
  • Emotional support: hosts affirm her efforts and resilience.

Actionable recommendations (prioritized)

  1. Immediate triage (this month)
    • Set up a tight budget that covers the “four walls” first (rent, utilities, food, basic transport) and daycare so you can keep working.
    • Continue current IRS $1,000/month plan (prioritize tax obligations to avoid liens/wage levies).
    • Use EveryDollar or another budgeting tool to map cash flow precisely.
  2. Legal & enforcement (short term)
    • Get a new, effective family/divorce attorney (the current one appears unhelpful). Ask about forcing the ex to refinance loans that were legally assigned to him or filing contempt/enforcement—document costs and timelines.
    • Explore low-cost legal aid options or consult another attorney for a one-time enforcement strategy estimate (often cheaper than ongoing counsel).
  3. Car strategy (high priority)
    • Because the $1,300/month payment is unsustainable, pursue one of:
      • Refinance to a much smaller loan (if possible) or get a co-signer (sister offered to help).
      • Sell the vehicle voluntarily if you can cover the deficiency with a small bridge loan.
      • Voluntary surrender: understand deficiency balance and negotiate with lender before deciding (surrender will likely still leave you responsible for the shortfall).
    • Aim to reduce car-related monthly payments ASAP (even if you need a “beater” short-term).
  4. Debt structure & budgeting (ongoing)
    • Work with a certified financial counselor (Ramsey Network offered one on-air) to run detailed monthly numbers and a debt-snowball plan.
    • Prioritize legally yours debts (student loans, tax liabilities) after four walls/daycare.
    • Avoid paying more to an ineffective attorney; invest in targeted legal action or financial counseling with clear ROI.
  5. Emotional & practical supports
    • Lean on offered resources (certified counselor) and community supports (credit unions, local charities for childcare help if eligible).
    • Keep documenting ex’s noncompliance for court use.

Risks and cautions

  • Do not voluntarily relinquish assets (like the car) without understanding the deficiency balance and long-term legal/credit consequences.
  • Avoid throwing more money at an attorney who isn’t helping; get a second opinion.
  • Bankruptcy shouldn’t be pursued as a first immediate fix here given Chapter 13 constraints and the current situation—get legal/financial counseling before filing.

Notable quotes / host insights

  • Caller: “I can barely keep my head above water.”
  • Host: “Find a little bit of freedom in that honestly, it can't get worse.”
  • Host encouragement: “You’re doing incredible. You’re an incredible mom. You’re an incredible fighter.”

Next steps for Hannah (concise checklist)

  • Replace or consult a new divorce attorney with expertise in enforcement/refinance orders.
  • Connect with the certified financial counselor offered by the show and set up a full budget review.
  • Rework budget to secure four walls + daycare first; continue IRS payment plan.
  • Immediately pursue a lower-cost car option (refinance, co-signer, sell/trade) to cut the $1,300/month payment.
  • Collect and document all court orders and the ex’s noncompliance for enforcement action.

Resources suggested on the episode: EveryDollar budgeting app and the Ramsey Network’s certified financial counselors to run deeper numbers and next-step planning.