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Nicole from Boston called into “The Ramsey Show” recently with a heavy question: How do you support your husband while protecting your family from financial disaster? Her husband had pulled them deep into risky real estate investments, and now they were staring down $6 million in debt.
Nicole explained that her husband has been betting on a troubled apartment complex that has been draining the couple’s finances for years. The property, which was supposed to be a profitable investment, has become a major liability.
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“It always takes the cash flow of my small business and his other cash-flowing property,” Nicole said. “But it’s hit the point now where we have to max out credit cards.”
Her husband now wants to take out a large loan to fund renovations in hopes of finally selling the property, but Nicole isn’t on board. “My answer is I don’t want to do this and his opinion is we have to do this,” she told personal finance experts Dave Ramsey and Jade Warshaw.
“You’re not called to respect your husband if every time he gets in a car, he drives it into a ditch,” Ramsey said. “You go, you suck at driving. That’s not disrespectful of your husband. It’s disrespectful of his driving ability because he sucks at driving.”
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He continued, “Don’t get this confused that somehow respect means turning a blind eye to idiocy. That’s just enabling.”
Nicole revealed that the property is worth just over $6 million, barely covering what they owe. Ramsey gave her two choices: to give it back or to sell it as is.
She wasn’t sure whether they were personally liable for the loan. If they were, then Ramsey said they had to sell it; otherwise, they’re going to get their “butt sued.”
