The Ramsey Show

My Mom Wrecked My Rental & I Have To Evict Her

February 25, 2026

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  • Voluntary repossession of a vehicle is just as damaging to credit as an involuntary repossession, and seeking advice from the dealership about such matters is ill-advised. 
  • Siloed finances in a marriage create an environment ripe for secrecy and financial infidelity, underscoring the need for complete transparency and combined accounts. 
  • When dealing with family financial crises, setting clear boundaries and offering conditional support is necessary to avoid enabling destructive behavior, especially when the family member refuses to change their enabling situation. 
  • When considering financial gifts to family, prioritize giving directly to specific needs to prevent enabling destructive behavior by the recipient or others, like the son mentioned in the first caller's situation. 
  • A 28-year-old debt-free caller with $730,000 in liquid assets should prioritize giving, investing (including maxing Roth IRA and brokerage accounts), and buying a paid-for home as a major wealth-building move. 
  • Family financial arrangements involving property ownership, like buying a mother's house to secure her retirement, are often too messy and should be avoided in favor of direct, budgeted gifts for travel or expenses, especially if it complicates inheritance or ownership rights. 
  • When aggressively paying down debt (Gazelle Intensity in Baby Step 2), an upside-down car loan must be eliminated immediately, even if it means temporarily driving a 'clunker' or delaying other purchases like vehicles for teens. 
  • Major home repair disasters that deplete savings must be addressed concurrently with debt payoff, prioritizing the elimination of high-interest debt before upgrading living situations or transportation. 
  • The emotional difficulty of downgrading vehicles should be ignored when pursuing financial peace, as true friends will support the financial journey regardless of temporary status symbols. 

Segments

Evicting Mom and Rental Damages
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(00:00:29)
  • Key Takeaway: A caller needs advice on funding $20,000 in damages caused by his mother, who was living in his rental property for 13 years without a formal lease or deposit.
  • Summary: The caller’s mother, who has exhausted her retirement funds due to poor decisions, caused approximately $20,000 in damages to the rental property. The caller lacks landlord insurance because the arrangement was informal, meaning he must cover the costs himself. The hosts advise him to cash flow the repairs over a few months rather than liquidating all his savings at once.
Financial Snapshot and Rental Strategy
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(00:03:40)
  • Key Takeaway: A retired military member with a stable pension and $19,600 in savings is advised to consider selling the rental property to avoid future landlord headaches.
  • Summary: The caller has a stable income of $8,700 monthly with $3,000 in expenses after bills, creating $3,000 in monthly margin. Selling the rental property could net him around $140,000, which he prefers to invest in the market rather than managing further tenant issues. The hosts support selling the property given the current stress and the potential for future inconvenience.
Car Repair Dilemma and Voluntary Repo
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(00:10:26)
  • Key Takeaway: A caller with a non-running car owing $7,100 is strongly warned against voluntary repossession (repo) as it still destroys credit and leaves the borrower liable for the deficiency balance.
  • Summary: The caller’s 2023 car needs an $8,500 engine replacement, but he only has $1,000 liquid and is driving a gifted, paid-off vehicle from his mother. The dealership incorrectly advised him to pursue a voluntary repo, which the hosts condemned as a path to failure. The recommended action is to keep making payments on the loan while aggressively budgeting to pay off the remaining balance quickly.
Financial Infidelity and Debt Silos
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(00:22:18)
  • Key Takeaway: Discovering $24,000 in maxed-out credit card debt hidden by a spouse after 15 years of marriage highlights the danger of siloed finances.
  • Summary: The caller discovered his wife had $24,000 in credit card debt, including cash advances, which he was unaware of due to maintaining separate finances. The hosts identified three core issues: money being siloed, a lack of clear relationship stance on debt, and poor communication leading to secrecy. The solution involves combining finances, freezing credit to prevent further debt, and attacking the debt using the debt snowball method.
Supporting Family Without Enabling
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(00:54:54)
  • Key Takeaway: Financial support for a parent living with an unemployed adult child should be given directly to the parent’s specific needs to prevent enabling the adult child’s dependency.
  • Summary: The caller wants to support his 70-year-old mother who has been financially compromised by her 40-something, long-term unemployed son living with her. The hosts advise setting a firm boundary: support is conditional on the mother separating herself from the enabling situation or receiving funds via direct means like gift cards for specific needs. It is acceptable to offer a one-time gift but not to continue funding a situation that enables irresponsibility.
Overcoming Debt Defeat with High Income
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(00:44:48)
  • Key Takeaway: A family with $100,000 in non-mortgage debt and a $164,000 household income can rapidly accelerate debt payoff by selling an overvalued car to free up monthly cash flow.
  • Summary: This family feels defeated by their debt load, which includes $40,000 in credit cards and two car payments, despite a strong income. The hosts recommend selling the $28,000 car, which is worth about $30,000, to free up $500 in monthly payments and gain $2,000 cash. This reclaimed cash flow, combined with disciplined budgeting, allows them to aggressively attack the debt using the debt snowball method.
Mother’s Financial Enabling
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(00:58:32)
  • Key Takeaway: Giving directly to a parent’s specific needs via gift cards is recommended over unrestricted cash to prevent enabling a problematic adult child.
  • Summary: The caller’s mother is in dire straits due to her son, who previously sold family land and continues to access her money. Hosts advise pausing further gifts until the situation is clearer. Giving directly to needs, like covering taxes or groceries via gift cards, can help separate the aid from the enabling son.
Investing $730k Windfall
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(01:01:23)
  • Key Takeaway: A 28-year-old with $730,000 should split the funds among giving, investing (including maxing Roth IRA and brokerage accounts), and buying a paid-for primary residence.
  • Summary: A 28-year-old caller, debt-free with $200k saved plus a $530k judgment, received advice to allocate the money across giving, saving/investing, and purchasing a home with cash. Buying a primary residence with cash at this age is highlighted as one of the best wealth-building moves possible.
Buying Mother’s Paid-Off House
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(01:06:40)
  • Key Takeaway: Buying a financially stable, debt-free mother’s $400,000 house to fund her travel is discouraged due to potential future family dysfunction and messy ownership.
  • Summary: The caller proposed buying his mother’s paid-off house, which generates $2,000 monthly in rent, to give her $50,000 in cash for retirement travel. Hosts strongly advised against this, suggesting it creates unnecessary complexity and potential resentment, recommending instead to gift her travel money directly.
Parental Loan Guilt
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(01:20:23)
  • Key Takeaway: A parent who loans money to a child for an emergency expense should consider returning the money as a gift to correct the mistake of engaging in debt.
  • Summary: A mother felt guilty after her son repaid a $450 loan for car repairs, realizing she initiated his first debt experience. The advice given was that it is often better for the parent’s heart and the child’s lesson to return the money as a gift, emphasizing that debt should be avoided.
Financing Family Apartment Construction
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(01:46:18)
  • Key Takeaway: Financially responsible adults should never take on debt (HELOC or auto loan) or deplete cash reserves to fund construction for adult children, regardless of the asset created.
  • Summary: A caller asked about using a HELOC or an auto loan against his paid-off car to build an apartment for his ministry-working daughter and son-in-law. Hosts firmly stated that putting one’s own home or car at risk for this purpose is too risky and financially irresponsible.
Marriage Timing vs. Tuition
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(01:51:44)
  • Key Takeaway: Delaying marriage until a student’s tuition is covered by parents is less advisable than delaying the wedding until after graduation to avoid taking on student loans.
  • Summary: A couple faces losing parental funding for pharmacy school tuition ($17k/semester) if they marry before graduation. The recommendation was to delay the wedding until graduation, as taking out student loans to marry sooner is not a viable option.
Ramsey Trusted Agent Promotion (Unknown)
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  • Key Takeaway: None
  • Summary: None
Scripture and Quote of Day
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(01:56:52)
  • Key Takeaway: Act heartily as unto the Lord and avoid future regret by seizing the day.
  • Summary: The scripture of the day is Colossians (3:23), encouraging listeners to do whatever they do heartily, as if working for the Lord, not just for men. Mark Twain’s quote advises that future disappointment stems more from inaction than from actions taken. This encourages seizing the day to avoid regret.
Caller’s Debt and Home Crisis (Unknown)
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  • Key Takeaway: None
  • Summary: None
Upside-Down Car Dilemma (Unknown)
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  • Key Takeaway: None
  • Summary: None
Car Strategy and Cash Flow Plan (Unknown)
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  • Key Takeaway: None
  • Summary: None