Today, Dave Ramsey is known as an outspoken personal finance expert. But before he became a household name, Ramsey experienced a financial crisis that turned his life upside down. It all started when he realized how deeply in debt he was – and when American Express called his wife and questioned her choice to stay with a man who couldn’t pay his bills. That moment sparked a transformation that changed Dave’s life and led him to help millions of others regain control of their finances.
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In the late 1980s, Ramsey was flying high. By age 28, he had built a $4 million real estate portfolio and was well on his way to what he believed was lasting wealth. But things quickly collapsed. Changes in banking laws led to his loans being called and Ramsey suddenly having to pay back $1.2 million. He was forced into bankruptcy without a way to liquidate his properties quickly enough.
That was a tough pill to swallow. Ramsey recalls, “I was splashing. It hurt.” The financial crash not only wiped out his wealth; it made life at home tense and uncertain. To make matters worse, the creditors were ruthless. Ramsey vividly remembers an American Express representative calling his wife Sharon and asking why she was “staying with a man who wouldn’t pay his bills.” “I was a really crazy redneck,” Ramsey admits, and that was the moment he knew things had to change.
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Ramsey made a decision: no more debt. Someday again. He promised to be “the last Ramsey on this branch of the family tree in debt.” He canceled all his credit cards, swore off borrowing money and decided to teach his children – and anyone who would listen – how to build wealth without relying on debt. It wasn’t just about building wealth, but also about breaking the cycle and starting a new chapter.
