Retired 73-year-old Ramsey caller has ‘$175 in savings’ and $57K in debt. Is it all over? 4 habits to avoid her fate

Retired 73-year-old Ramsey caller has ‘$175 in savings’ and $57K in debt. Is it all over? 4 habits to avoid her fate

Thomas Kent

Sun, September 6, 2026 at 1:45 PM GMT+3 8 min read

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At 73, Wanda and her 76-year-old husband receive $102,000 a year from military disability benefits, a pension and Social Security. Approximately $8,500 lands in their bank account each month.

Yet, when Wanda called into The Ramsey Show (1), she revealed that the retired couple had almost nothing saved for an unexpected expense.

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"I have $175 in savings. And that's it," she told hosts Rachel Cruze and George Kamel.

The couple also had approximately $57,000 in consumer debt spread across credit cards, a personal loan and a travel trailer Wanda no longer wanted. That figure did not include their leased truck or the roughly $350,000 remaining on their mortgage.

Is it all over? Cruze and Kamel didn't think so. The couple's reliable income gives them enough room to recover, but only if they change how they manage it.

Wanda's experience also offers a warning for Americans with decades left before retirement: A high income alone cannot build financial security. These four habits can.

1. Stay out of high-interest debt

Wanda and her husband had already attempted to solve their debt problem by moving it elsewhere.

They refinanced their home and used the money to pay off their credit cards. Two months later, they had accumulated another $14,000 across the two cards.

That is the danger of treating consolidation as a substitute for changing your spending. Moving several balances into one loan may reduce your interest costs and simplify your payments, but it cannot prevent you from charging the cards back up.

If you currently owe money, list every balance, minimum payment and annual percentage rate. You can prioritize the debt with the highest rate to minimize interest or pay off the smallest balance first to gain momentum. Whichever method you choose, avoid adding new charges while paying off the old ones. Developing good habits is the best way to stay out of debt.

But sometimes, managing all of those payments can be too much. That's when consolidating your debts into a personal loan through a service like Credible could be a good idea. Instead of juggling multiple monthly payments, you'll have one predictable payment to manage each month.

Through Credible's online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you'll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you're eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.

Read More: Millionaires under 43 hold only 32% of their wealth in stocks. Here's where their money is actually going

2. Keep a well-stocked emergency fund

With only $175 available, almost any unplanned expense could send Wanda and her husband further into debt.

They could not cover a $400 vehicle repair, medical bill or urgent trip without borrowing. Many Americans share that vulnerability. The Federal Reserve's latest household survey found that only 63% of adults (2) could cover a $400 emergency using cash or its equivalent.

Cruze initially advised the couple to build a $1,000 starter emergency fund. Kamel believed their income would allow them to do it within 30 days by cutting expenses and selling items they no longer needed.

Your eventual target will depend on your expenses, job security, health and number of dependents. Whatever number you choose, keep the money somewhere safe and accessible. An emergency fund should prevent you from needing a credit card when something goes wrong.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That's 10 times the national deposit savings rate, according to the FDIC's August report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

3. Use a written budget

Wanda's household income was not the central problem. The couple had $8,500 coming in each month but did not appear to know how much they could redirect after paying their regular bills.

Kamel asked whether the couple could live on half their income; Wanda said they probably could because they had done so before.

That could leave approximately $4,200 each month for debt repayment. After selling their $32,000 trailer, Kamel estimated they could eliminate the remaining consumer debt within six or seven months.

The sacrifice would be temporary. Afterward, that same monthly margin could build their emergency fund, reduce their mortgage or be invested for the future.

A budget does not have to remove everything enjoyable from your life. Its purpose is to make sure your spending reflects your priorities.

Monarch Money's expense tracking system makes managing your finances easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you're overspending.

Begin with housing, utilities, groceries, transportation, insurance and minimum debt payments. From there, you can assign money to savings and investments easily.

And by linking your credit card accounts, you can monitor your payment progress in real time and set specific goals to pay off credit card debt faster.

For a limited time, you can get 50% off your first year with the code WISE50.

4. Save and invest for the future

Wanda and her husband have dependable retirement income, but little accumulated wealth to draw on when their needs change.

Younger workers possess an advantage the couple cannot recover: time. Specifically, time in the market.

Compound growth occurs when you earn returns on your original investments as well as previous returns. The longer your money remains invested, the more opportunity it has to grow.

Starting with modest, regular contributions may be more powerful than waiting years until you feel wealthy enough to begin. That's the beauty of ETF investing.

And anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, an app that automatically invests your spare change.

Signing up for Acorns takes just minutes: Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

With Acorns, you can invest in a dividend ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

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