'I Earn $19K And Have $80k Debt': 28-Year-Old Drowning In Loans Asks Finance Guru For Advice

David Ramsey is a bestselling author and radio host works with more than 5,000 professionals to advise his listeners on tax bills, real estate insurance, debt and other finances.

Ramsay is also the face of The Ramsay Show, a radio programme and podcast that discusses money management.

"I am barely making it," said 28-year-old Rashina, a substitute teacher who asked Ramsay for advice as a caller on the podcast.

As a substitute teacher, Rashina told Ramsay that she earns around $19,000 each year and spends an average $600 on her rent each month.

Speaking on Ramsay's podcast, Rashina also said that she had severe financial anxiety because she was "drowning in debt".

"I hate to use this term, but I am drowning," she said.

Rashina told the financial adviser: "I am considering bankruptcy at this point. I am not sure if I should go back to school. I just, don't know what to do right now," she added.

Rashina went on to note that to increase her qualifications and to obtain a certificate in education, a teaching program is compulsory.

While she has already tried to enrol into a teaching school in Texas, Rashina explained: "I owe a debt that is actually preventing me from getting a certificate."

Rashina told Ramsay that the debt she was referring to, was a $1,300 loan, in addition to "so much student loan debt".

The substitute teacher later admitted to racking up a staggering $80,000 in debts, including a $62,000 student loan bill and 18,000 in consumer debts.

After Rashina described her debts as "stupid decisions" and went on to explain: "I have taken out payday loans. I have a car note that got repossessed last year and they want $12,000 on it. And I have a new car loan, because I couldn't pay cash, so I'm paying that too."

In response to Rashina declaring bankruptcy, Ramsay noted: "Student loan debt is not bankruptable, so a bankruptcy would not clean off the $62,000. It might clean off the $1,300... that one sounds like it is a private debt."

Filing for bankruptcy would also "clean off your old repossession", the financial advisor continued, telling Rashina: "It would clean off the payday loans. It would not clean up the $5,000 debt on the car unless you turn the car in – you don't get to get rid of the debt and keep the car."

Declaring bankruptcy would provide Rashina with between $8,000 and $10,000 dollars and "change your whole life", Ramsay declared.

"I don't think you have a debt problem, as much as you have a huge income problem," he added.

After declaring bankruptcy, to tackle the student loan debts, Ramsay told Rashina that she should be "delivering pizzas and waiting tables and whatever else you can come up with to make money".

In a bid to fix the US student loan system, last month, US President Joe Biden announced that he would be cancelling student debt loans for almost 153,000 students who are currently enrolled on the repayment plan, Saving on a Valuable Education.

While the debts totalled at almost $138 billion, Biden said that the scrapping set out to ensure that education no longer acts as a barrier to opportunity for middle and low-income households.

Having cancelled more student debts that any other US President, Biden's scrapping has been dubbed as "life changing" for the 3.9 million borrowers who saw their debts disappear.