$200k Income, $8k Debt: Ramsey’s Advice? “Cut Up Your Cards and Get Serious.”

Core Insights - High income does not equate to financial stability, as demonstrated by a couple with a combined income of $200,000 who are struggling with $8,000 in credit card debt [4] - The couple received a $12,000 commission check, which could have been used to eliminate their credit card debt, highlighting a lack of financial planning [4][6] - The primary issue is not the financial situation itself, but rather the absence of a budget and expense tracking, leading to unnecessary debt accumulation [4][5] Recommendations - Dave Ramsey advised the couple to "cut up" their credit cards to prevent further irresponsible usage, which is a necessary step given their financial habits [6] - Learning to budget and track expenses is essential to avoid similar situations in the future, and seeking help from a financial advisor can facilitate this process [7] - Paying off the debt with the commission check and using debit cards or cash instead of credit cards is recommended until they can commit to paying off their credit card balance in full each month [7]