Dave Ramsey suggests how a ‘concerned’ woman, 65, in £22,000 debt can get by in retirement


On a video posted on The Ramsey Show – Highlights YouTube channel in 2020, the American personal finance personality offered guidance to Debbie on how she can plan for retirement, now that her husband has passed away. Debbie had lost her husband a few years prior to speaking with Dave and she was worried as they had not finished planning for their retirement.
Since losing his income stream, Debbie has struggled to carry on saving for retirement.

They had a business together and she was not qualified to continue his role.

She told Dave she had completed steps one, three and six out of his financial plan ‘The Baby Steps’.

However, she has not been able to complete step two as she has about £22,000 (around $30,000) in debt.

Before her husband passed, they bought a time share, and they also had credit card debts.

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Dave suggested that she should write a check and pay off the credit card debt.

That would leave her around £20,000 ($30,000) left in the bank.

“You will be okay,” he reassured her.

He suggested that she also chops up her credit cards and stops using those completely.

Debbie still worked part time at her job, but it brings in nowhere near as much as what her husband used to make.

The money guru said: “The good thing is you’re still young.

“You still have a lot of energy, and you can still do that for a while.

“You could even do it full time if you wanted to beef your budget up a notch and not touch your nest egg.”

He explained to her that she does not need to worry as she has a paid for house, and after today should have no debt.

“That feels pretty good doesn’t it,” he said.

He gave her advice about her annuity.

He said: “Make sure it is in a good variable annuity and is invested in good mutual funds and growing.

“If it’s not we need to do some work there, but just let the invested money double.

“By 72, if you don’t touch it, it could be close to £740,000 ($1million) as investments should double every seven years.

“You’re in pretty good shape, there’s no struggle here.”

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