However, the teen did receive some financial advice on how to get out of the hole.
A college freshman is in a bind due to poor credit management.
The 18-year-old called The Ramsey Show, a Dave Ramsey-hosted debt management advice show.
He bought a $40,000 car on credit and is now looking to trade it in for something more affordable.
“I’m currently 18 and by the time I graduate, I’m probably looking at a hundred to $120,000 loan,” the teenager told me.
“My current car is under my mom’s name with her interest rates on it.”
The student from Toronto, Canada, explained how his father’s departure ruined his mother’s credit.
He is now looking to trade in the car for one with a lower interest rate.
However, he may have to max out his credit cards just to cover the down payment.
“You’re a college student … with a $40,000 freaking car,” Ramsey chided.
“What are you doing with a $40,000 car?” “You are a college student.”
The student explained that he had a $70,000 car and an additional $60,000, but his interest rate increased to 12% after his mother’s credit was ruined.
“I don’t think it’s your mom’s fault,” Ramsey said.
“You have a $40,000 car and are in college. Purchase a $4,000 car.”
Despite his disbelief in the situation, Ramsey provided some helpful advice to the struggling teen.
The young entrepreneur stated that he earns $1,000 to $1,500 per month from retail.
However, he had a side business and $70,000, which are now gone.
Co-host Jade Warshaw suggested looking at the Kelly Blue Book value to get the best deal on the car.
“Your situation sucks beyond belief,” Ramsey said.
“Your financial decisions are beyond suicidal.
“So you’ve got to throw a stick of dynamite in the middle of this freaking mess you’ve created and it’s going to be really uncomfortable.”
Ramsey then told the student that he might have to drop out of school and start working.
“I want you working like 80, 90 hours a week going to school on caffeine and doing what normal people do when they get in this.”
The expert’s best advice was to prioritize getting out of debt before taking on new commitments like school.
“Quit college for a year and take a gap year and go clean this mess up while you work like a freaking maniac.”
