Dave Ramsey is known today as a straight-talking personal finance expert. But before becoming a household name, Ramsey went through a financial crisis that turned his life upside down. It all started when he realized how deep in debt he was – and when American Express called his wife, questioning 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 up a $4 million real estate portfolio and was well on his way to what he thought was lasting wealth. But things came crashing down fast. Changes in banking laws led to his loans being called in and Ramsey suddenly needed to repay $1.2 million. He was forced into bankruptcy with no way to liquidate his properties quickly enough.

That was a tough pill to swallow. Ramsey recalls, “I splatted. It hurt.” The financial crash didn’t just wipe out his wealth; it made life at home tense and uncertain. To make things worse, creditors were relentless. Ramsey vividly remembers when an American Express representative called his wife, Sharon, asking why she’d “stay with a man that won’t pay his bills.” “I was a very mad 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. Ever again. He vowed to be “the last Ramsey in this branch of the family tree in debt.” He canceled all his credit cards, swore off borrowing money and resolved to teach his children – and anyone else who would listen – how to build wealth without relying on debt. It wasn’t just about building wealth but about breaking the cycle and starting a new chapter.

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