He Took Out 500% APR Payday Loans. Dave Ramsey Says, 'Teach Your Children, Teach Your Grandchildren, Teach Everyone's Children To Stay Away'

Core Insights - A man from Allentown, Pennsylvania, is struggling with $3,500 in payday loan debt at interest rates around 500% after losing his job [2][4] - The personal finance experts provided tough love advice, emphasizing the importance of prioritizing essential living expenses over payday loan payments [3][4] - The caller is set to start a new job with an annual salary of $70,000 in three weeks, but needs immediate solutions to manage his current financial situation [3][4] Group 1 - The caller, Alex, took out payday loans due to lack of credit options after being laid off, leading to a cycle of debt [2] - Alex earns approximately $800 a week from driving for Lyft and side gigs, which is insufficient to cover his debts and living expenses [2] - Ramsey advised Alex to seek additional weekend work and suggested various job opportunities to increase his income [3] Group 2 - Ramsey emphasized the need to prioritize spending on food, electricity, rent, and car payments before addressing payday loan debts [4] - The suggestion to revoke payday lenders' access to his bank account was supported, but Ramsey reminded Alex of the necessity to eventually repay the debt [4] - Ramsey criticized the payday loan industry, urging individuals to educate others about the dangers of such loans [4]