We Just Moved In And Are Already Behind On Rent!

Summary of We Just Moved In And Are Already Behind On Rent!

by Ramsey Network

10m•April 3, 2026
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Overview of We Just Moved In And Are Already Behind On Rent!

Ramsey Network hosts a caller couple who are $65,000 in debt and already behind on rent after a move. The episode walks through their income, debts, decisions that led to the situation (notably an expensive auto loan and rolled negative equity), and gives blunt, practical advice: prioritize essentials, stop making destructive financial choices, sell the truck, and get aggressive about increasing income and budgeting.

Key facts & financial snapshot

  • Total debt: about $65,000
    • Auto loan: ~$50,000 (payment ≈ $1,000/month)
    • Other debt: ~$9,400 (≈ $5,500 personal loans; rest credit)
  • Monthly bills: ≈ $3,800
  • Income: new job brings in ≈ $3,600/month as of Feb 1
  • Behind on rent (fell behind starting in February)
  • Taxes not yet filed; expect a refund of ≈ $5–6K but believe they may owe half to a former employer for damaged equipment
  • Vehicle: 2025 Dodge Durango (KBB ≈ $26,000); rolled ~$10K negative equity from prior trade-in; driving ~35,000 miles/year

Main issues identified

  • Overly large auto loan relative to income — vehicle payment and negative equity are crippling cash flow.
  • Insufficient household income to cover bills, rent and the car payment simultaneously.
  • Emotional/incorrect belief that the husband must pay the former employer for broken equipment despite being an employee (host rejects this idea).
  • Slow or no budgeting; taxes and refunds not managed yet.
  • Pattern of worsening financial decisions over two years (increasing debt, bad trades).

Host’s core advice & priorities

  • Moral/contract point: Employees generally are not personally liable for employer-owned equipment damage; the owner bears that risk.
  • Do not give the expected tax refund to the former employer or landlord before stabilizing essentials.
  • Sell the truck (or otherwise eliminate the high-cost auto loan) — it’s the biggest immediate problem.
  • Follow this strict order of priority for every dollar:
    1. Groceries (no restaurants)
    2. Utilities (electricity, water, etc.)
    3. Rent/mortgage (stay current to avoid homelessness)
    4. Car (keep current only after rent is handled)
  • Stop buying cars on debt; never finance a car payment like this again.
  • Increase household income — both partners likely need to work; expect intense focus on work and debt repayment for multiple years.
  • Use a budget tool (EveryDollar) to control cash flow.

Recommended action plan (step-by-step)

  1. File taxes this week and determine exact refund/tax liability.
  2. Use available cash/refund only to get rent current and cover immediate essentials (groceries, utilities).
  3. Do NOT pay the former employer for the broken equipment (no legal basis presented here; prioritize necessities).
  4. Keep paying the car to avoid repossession while you arrange to sell it — but plan to sell ASAP.
  5. List the Durango for sale and/or explore options to cover the negative equity (save difference, bring cash to a buyer, or sell privately to maximize proceeds).
  6. Cut all discretionary spending (no restaurants, no extra subscriptions).
  7. Both partners should increase income immediately (additional jobs, overtime, side work) until debt is under control.
  8. Create and stick to an EveryDollar budget; track every dollar toward essentials and debt repayment.
  9. Do not finance another car; buy with cash after rebuilding emergency savings.

Notable quotes / insights

  • “You do not pay for broken equipment when you work for someone. That’s not how life works.”
  • “The owner takes the risk. That’s what owning a business is.”
  • “If you go near a car lot to buy a car on payments again, I can’t help you.”
  • Money-order priority: groceries → utilities → rent → car.

Topics discussed

  • Car loans, negative equity, depreciation and high-mileage wear
  • Employee vs. employer liability for damaged equipment
  • Budgeting basics and spending priorities
  • Tax refund handling in crisis
  • Behavioral change required to recover (income increase + stop bad decisions)

Bottom line / Takeaway

Their immediate focus must be getting rent and basic living needs current, selling or otherwise eliminating the expensive truck, and dramatically increasing income while following a strict budget. The host is blunt: stop making decisions that deepen the hole (especially financing cars) and prioritize essentials before paying other creditors. Use a budgeting tool and commit to multiple years of aggressive work and discipline to recover.