Many young people dream of owning fancy things early in life, but sometimes, those dreams can lead to serious money problems. That’s what happened to an 18-year-old college student who found himself buried in debt after buying a luxury car he couldn’t really afford. He called into The Ramsey Show, a popular financial advice program hosted by money expert Dave Ramsey, to ask for help.
A Costly Mistake: Buying a ₹33 Lakh Car on Credit
This teenager from Toronto, Canada, made a big mistake by buying a car worth around $40,000 (over ₹33 lakh) on credit. At first, the car loan was under his mother’s name, but things got worse when her credit score took a hit after his father left the family. Because of this, the loan’s interest rate jumped to 12%, making monthly payments very difficult.
The young student admitted that he once even had a $70,000 (₹58 lakh) car, along with another $60,000 (₹50 lakh) loan. With no stable income to cover the costs, things quickly spun out of control.
Income Problems and a Failed Business
Although the student earns around $1,000 to $1,500 (₹83,000 to ₹1.25 lakh) per month from a part-time retail job, it’s not enough to pay off such high loans. He also tried starting a business, which failed, and lost $70,000 in the process.
He’s now thinking about trading in his car for a cheaper one, but even that may need him to max out his credit cards just to cover the down payment.
Harsh but Helpful Advice from Dave Ramsey
Dave Ramsey didn’t hold back. “You’re a college student with a $40,000 car. What are you doing?” he asked bluntly. Ramsey made it clear that the student’s choices were the real problem — not just his mother’s credit situation.
Instead of blaming others, Ramsey advised him to sell the car and get something affordable, like a $4,000 (around ₹3.3 lakh) used vehicle. He also suggested checking the Kelly Blue Book value to get the best possible price for the car trade-in.
The Tough Love: Quit School and Work Full-Time
Ramsey’s strongest advice was for the student to consider quitting college temporarily. He suggested taking a gap year and working 80 to 90 hours a week to pay off the debt. It might sound extreme, but Ramsey explained that the student needs to clean up the financial mess before adding more pressure, like studying.
Co-host Jade Warshaw added that it’s time to make some serious lifestyle changes and focus fully on fixing the finances. According to both hosts, this situation calls for hard work, discipline, and smart decision-making.
This story is a reminder that big purchases like cars should never be made without proper planning, especially if you’re a student with limited income. Many young people fall into the trap of wanting expensive things too soon. But debt can pile up fast and cause long-term problems.
It’s always better to start small, manage your money wisely, and focus on building a strong financial base first. Taking a temporary break from college to work and save up may not be the easiest option, but it could help avoid years of financial stress later on.