This Oklahoma man, 40, owes $30,000 in personal loans — one at a shocking rate of 300%. Here’s why The Ramsey Show co-hosts say his money choices make them ‘dizzy’

How one man racked up $30,000 in debt

In 2023, the average yearly wage in Oklahoma was $53,450, per the Bureau of Labor Statistics. Dylan, meanwhile, earned $85,000 in 2024, which means he probably earns enough to afford a reasonably comfortable lifestyle.

The problem? Dylan has an issue with spending, as Coleman and Kamel were quick to point out, and someone in that boat risks landing in debt no matter how much money they make.

"It's so easy, it seems like," Dylan said, describing the process of racking up debt. He’d borrowed $11,000 last year to fund a Fourth of July trip to Boston with his mom, as well as covering some other expenses.

When Coleman heard that, he was horrified. "You could've saved up for that," he told Dylan.

All told, Dylan owes about $30,000 in personal loans, as he doesn't have any credit cards. When asked what his personal loan interest rates were, Dylan said "one was like 300%."

It’s safe to say Coleman was shocked by that number: "300%? I'm dizzy."

Coleman and Kamel then pointed out that a rate that high sounds more like a payday loan than a personal loan. But either way, Dylan has a debt problem that he needs to tackle, and that involves getting to the root of it.

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Breaking the cycle of debt

Coleman and Kamel feel that Dylan can, over time, get rid of his debt. But as Coleman shrewdly observed, there's a deeper issue at play.

"I think you're profoundly sad about your life," Coleman told Dylan, which may explain why the latter spends so much money he doesn’t have. Coleman explained that he wasn't saying that to shame Dylan, but rather, to get Dylan to recognize that he could have a problem that goes beyond poor money management.

"The temptation is going to present itself tomorrow or the next week," Coleman explained. The co-host then told Dylan his priority should be to get to the bottom of why he keeps spending to fill a void. To that end, Coleman suggested therapy as a starting point.

Kamel then chimed in with some actionable advice on tackling the debt at hand. First, he told Dylan he absolutely has to stop taking on new debt. "We can't solve the current debt if we don't stop going into debt," Kamel insisted.

Kamel then asked Dylan what his smallest individual loan balance looks like, and whether he has any savings. Not surprisingly, Dylan has basically no money in the bank, which Kamel called living "down to the bone."

Dylan's smallest debt is worth $500, so Kamel said that's the debt to work on first. He suggested that Dylan use a popular tactic called the snowball method to pay down his debt. This method involves tackling your debts in order from the smallest balance to the highest balance.

The upside of using this method is getting to enjoy small wins as you tackle a large amount of debt — this tends to keep people motivated. In Dylan's case, Kamel suggested paying off the smallest $500 loan balance as soon as Dylan's able to come up with the cash. After that, Dylan can start throwing money at his next largest debt, and so forth.

Of course, that money needs to come from somewhere. Kamel told Dylan he needs to cut expenses and should consider signing up for overtime at work, which Dylan did. Kamel also suggested that Dylan might want to look into taking on a side hustle for extra income.

PYMNTS reports that roughly 40% of Americans currently have a side hustle, and the nice thing about a secondary income is that it allows you to earn money in a fairly flexible manner.

Kamel also asked if Dylan has anything he can sell to drum up some cash, but Dylan said no — his only possession of value is a paid-off car. At this point, cutting spending and boosting his income is probably the best strategy for Dylan to tackle his debt.

Kamel is confident Dylan can shed his debt, but warned that it wouldn't be easy. "It's going to take a lot of sacrifices," said Kamel, cautioning that it might take Dylan a good 18 months of hard work and minimal spending to meet his goal.