‘This has gotta stop': This Cleveland man going through a divorce is spending $970/month to pay off his truck — and now his ex wants him to shoulder $15K more of debt. Dave Ramsey responded

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‘This has gotta stop': This Cleveland man going through a divorce is spending $970/month to pay off his truck — and now his ex wants him to shoulder $15K more of debt. Dave Ramsey responded
‘This has gotta stop': This Cleveland man going through a divorce is spending $970/month to pay off his truck — and now his ex wants him to shoulder $15K more of debt. Dave Ramsey responded

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Divorce can be financially devastating — as one Cleveland man recently found out.

Corey called into The Ramsey Show recently to describe how his personal finances were upended by an ongoing divorce and how his soon-to-be ex-wife wants him to shoulder even more debt. “This has gotta stop!” Ramsey replied, shocked by his situation.

Multiple outstanding debts, monthly payments and a truck with negative equity have strained Corey’s personal finances. He admitted that he’s on the verge of financial ruin.

That’s just the tip of the debt iceberg for the pair.

If debt is making it difficult to keep your own household finances afloat, here are some ways you can start to take control of your monthly expenses.

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Get your debt under control

With $65,000 in combined credit card debt, as he told Ramsey, Corey and his wife are already in a deeper hole than the average American, who has a balance of $6,088, according to the latest TransUnion data.

Corey has $35,000 outstanding, which is roughly six times higher, while his wife wants him to take half of hers ($30,000) too.

Juggling multiple debts — let alone trying to tackle them during something as tumultuous as a divorce — can be overwhelming.

The silver lining is there are ways to take back control of your situation. For instance, Credible* — a free online loan marketplace — can make tackling your debt easier.

When you fill in some information about yourself and your finances, Credible shows you multiple lending options to pay off your debt faster — and save a ton in interest.

Checking rates with Credible* won't hurt your credit score and it’s totally free. If you’re intimidated by the prospect of paying off your debt, consider consolidating it with a personal loan from Credible to make your monthly payments easier to manage.

Lower your monthly costs

On top of the credit card debt, Corey’s car payments are $970 a month, which is also higher than the national average payments of $726 for new cars and $533 for used cars as listed by LendingTree.

Ramsey also recommended getting rid of the truck. A $970 monthly payment is, according to Ramsey, “in the cray cray zone” and simply selling the truck to a private buyer is worth the effort.

If you’re in a similar situation to Corey and feel you really can’t part with your beloved vehicle, it’s worth it to at least try reducing the monthly expenses that come along with it. For example, BestMoney* could help you get a better rate on your auto insurance.

Read more: Retire richer — why people who work with a financial advisor retire with an extra $1.3 million

BestMoney helps you compare the best insurance options your area. When you fill in a bit of information about yourself and your policy, you’ll get a list of car insurance options in your area.*

Once you’ve found the best insurance for you, you can put your mind at ease knowing one of your bills is as low as it can be.

Similarly, you can save on your monthly home insurance costs. With SmartFinancial* you can compare the best home insurance rates in your area. All you need to do is answer some quick questions about yourself and they’ll instantly sort through over 200 insurers to find you the best deals available and any discounts.

Mortgage debt

The couple also has a mortgage worth $132,000 on their house, which was recently appraised at $174,000.

Ramsey also recommends selling the house. This would allow Corey to give his soon-to-be ex-wife half the stake of that asset instead of disrupting others like his 401(k).

In situations like Corey’s, it might be worth considering a cash out refinance, such as the one offered by RocketMortgage*.

A cash-out refinance* is a form of mortgage refinancing that lets you borrow a larger mortgage than you currently have in exchange for access to your home’s equity.

This move can allow you to handle larger life expenses such as a divorce or a home renovation.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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