Heartbreaking Call on Ramsey Show
Recently, an episode of the “Ramsey Show” featured a deeply distressing call from 68-year-old Kathy, a woman from Texas who shared her story of financial loss. She discussed how she lost nearly $500,000 of her retirement savings due to online investment scams. Kathy even convinced her brother to invest, which resulted in an additional loss of $110,000, including a $50,000 loan she had taken from him.
“I left my job, took out my entire 401(k) and pension,” Kathy explained. “But last month, that online investment group just ghosted us, freezing our accounts. We lost everything.” Her situation is a vivid reminder of the dangers associated with online investing.
Kathy’s brother wants his $50,000 back, but she, now relying on a $2,000 monthly Social Security income, says she can’t pay him. To make matters worse, she has about $33,000 in debt, which includes loans from American Express. Though her home is estimated to be worth around $400,000, she struggles to keep up with her financial obligations.
Co-host George Kamel informed her, “You lost your retirement benefits. You’re likely not going to get it back. While bankruptcy could help with your American Express debt, it might not be worth pursuing.” Kathy mentioned she had applied for jobs but without success. Having worked in sales for 36 years before leaving her position in May, she seems frustrated yet hopeful about finding work again.
Looking at her options, Kathy considered a reverse mortgage but discovered her home wasn’t in good enough condition to qualify. Kamel voiced his disapproval of reverse mortgages, saying, “They burden you with fees. You could end up losing all the equity in your home. It’s a risky financial option that often exploits vulnerable people like Kathy.”
Kamel and co-host Ken Coleman advised Kathy on the importance of securing a job, regardless of where that might lead her—suggesting places like Starbucks or Walmart for now. Coleman encouraged her to share her story, acknowledging it might be challenging due to feelings of embarrassment.
They both emphasized that although her financial future feels bleak, keeping her home should be a priority for the time being. “Try to stay afloat,” Kamel advised. “You can always sell in the future if necessary. It might be painful to accept, but you need to be realistic about what’s next.” The whole conversation serves as a reminder of how swiftly life can turn, and the emotional weight that comes with financial loss.
