The Rachel Cruze Show - The Proven Plan That Helped Her Pay Off $460,000 In Debt (with Jade Warshaw)

Episode Date: June 11, 2025

📈 Are you on track with the Baby Steps? Get a free personalized plan. The truth is, debt is a thief, but not everyone is taught that. In this episode, my friend Jade Warshaw shares how she learned this the hard way—including the steps she took to pay off $460,000 in debt and why they can work for you too.  Next Steps: 💵 The simplest way to budget. Download the EveryDollar app for free! 🎥 Watch my video Why 51% of Americans Are Struggling in Their Finances. 🎤 Follow Jade Warshaw on Instagram @jadewarshaw.   Connect With Our Sponsors:   Learn more about Christian Healthcare Ministries. Get 20% off when you join DeleteMe. Explore More From Ramsey Network: 🍸 Smart Money Happy Hour 🎙️ The Ramsey Show   💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman  📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

So debt is one place in money that people feel so kind of bogged down by. It's so frustrating. And people want out. They do. And that's why a lot of people come to Ramsey Solutions and some of our channels because we talk about this and we talk to real people doing this day in and day out. And so I just want you to know that there's hope. If you're in the middle of your journey, maybe you're starting your journey or maybe

you've paid off debt and you're able just to kind of bask in the idea of like, I did it. Regardless, we want debt out of your life. And so Jade Warshall is one of our Ramsey personalities. and she's incredible, y'all. Her story is unbelievable. She and her husband, Sam, paid off $460,000 in debt. And it took them close to seven and a half years to do it. So if there is someone to talk about getting out of debt,

she is the real deal. So she's going to come on and we're going to have a conversation about it because it is encouraging and a great reminder that you can do this if you're in this journey. So make sure to like, subscribe, and share this video with a friend. And let's get into my conversation with my friend, Jade Warshall. Well, Jay, thanks for coming back on. You bet.

anytime, Rachel. Thank you. I know you've shared your story on here before, but I do think, you know, as I continue to read comments and people find us, whether it's like on YouTube or podcasts, this idea of getting out of debt still feels impossible to a lot of people. Absolutely. I mean, it is an overwhelming thing to sit down. You look at your finances. You realize you're in trouble and there's something that you have to do about that in that moment. People don't like changing their routines, right? We feel a very close personal connection to the way we do things, how we spend our money. So when you realize that you have to make changes, it's very tough. Yes. And so you and Sam started this process. How long we're all married when we got?

About a year? Okay. And so when you decided, okay, let's just add everything up and see it was what, $460,000 right over that? It was. So $460,000 is more so after all the interests and things like that. So in the moment, it didn't look like $460. But you have to remember, this went over seven and a half years. So that interest was still rolling on the student loans. But yeah, we sat down actually with your dad's book, Total Money Makeover. It was the workbook edition. And so, yeah, you're writing out all of those numbers, which is so important so that you see the reality.

And the truth is in the moment, it's very painful. And it can feel like there's no hope, but you've just got to focus on the fact that I'm doing this because right quickly after it, I'm going to take a bunch of actions and I'm going to be able to do something about it. So don't get discouraged when you first write it down and it's overwhelming. Yes, because what I like about it is the actions you all took. It's something we talk about here at Ramsdale all the time. So they're not new if you've been watching this channel for a while.

But what I love about it is I'm like, there are actions that you can take if you're $2,000 in debt. That's right. Two million dollars in debt. Right? I'm like across the span of a dollar amount, it really is about this idea of I'm going to put in consistent work and do steps that are kind of common sense, but they work over a period of time. Yeah. I found that, you know, so we talk about budgeting, for instance, right? It's kind of like that first foundational step.

And you find that you think you know how to do it or you think. you've been doing it. But then when you laser into a plan, you go, oh, gosh, here were some layers that I was missing. Like for us, we forgot, you need a miscellaneous category. You know, for us, we forgot that. That $1, like, baby step one, you need that. And a lot of us try to go past that because we get overzealous and it's like, I want all the money to go to the debt. And you realize, oh, no, I need this. So you think I've got this on lock. And then as you start walking, you realize, no, there's a lot of areas I can tighten up in, even on the basics. Yes, totally. And what's wild to, I always feel like when you are thinking about something,

because I do that, I'm so guilty of this trade, I'll have all these thoughts, so whether it's like about health or spirituality, it's all these like thoughts. And I can have thoughts and opinions like all day. Like, oh, this, this, this. But I'm like, until my actions change. Yes. Does your life change, right? And so I'm a real great like intaker of stuff and can like rattle off things. But then to actually put in the discipline to like live it out. I feel like it's so hard. But number one, you would say is the budget. And I'm like, that's the truth.

Well, you're just saying it is so good. Like, you can know this, but until you actually live it out, you're really not going to feel the difference. That's right. And the budget is that. So I love what you're saying. It makes me think of James Clear. Remember, he says the motion versus action. It's like you're getting all this information.

That's the motion. And you feel great about that. Oh, I know about it. But then the action is, okay, now I've got the budget. I actually have to. live it out, do the action, stick to the line items, communicate with my spouse, you know, connect my bank, like do all of the things that the doing is the uncomfortable part. That's right. That's right. Yes. You know, but the good thing is when you do it and you are

successful, you have that first month where it may have been not have been perfect. It may have been a little messy, but you did it. You feel confident and you feel good about yourself and then you you want to keep doing it the next month. And so that budget so important, we always say Rachel, zero based, which that is a, that's one of those. I know. know, I know, I know. Yes. But when you do it, you go, wait a second, it is me giving every single dollar an assignment. I've been guilty of saying, well, I paid my rent, my mortgage, my groceries, my car payment,

kind of like those, you know, non-negotiables. And then whatever's left, that's like my treat yourself money. Yes. You can't do that. You have to give even the treat yourself money an assignment so that it's being spent the way it should be. Yes. You know, so that's so important.

And usually it's to go towards debt. Yeah, that's right. That's right. Yeah, especially when you have that margin to throw it there. Something else that creates a lot of margin you talk about is lowering your spending. Yes. So you and Sam, I know, did this. Yeah, I mean, you have to, right?

It's cutting back to bare bones. Obviously, we talk about four walls. Those are the things you need. You've got to have your rent and mortgage. You've got to have your utilities. Have to have transportation. Have to have food. A lot of us daycare.

Like, those are the things we must have. Must have insurance, right? Yes. But then there's a lot of things on our budget that are not necessities. We feel like they are because we're used to them. And honestly, you're probably not even thinking of them offhand because there's so ingrained in your lifestyle, right? But if you start writing them down, you see, oh gosh, I do spend money. We do go to the movies once a month. And I do get my nails done. And I do go get

my roots died. Well, I don't get my roots died. I do, but I do. Not yet, not yet. I'm sorry, 30, but it's fine. No big deal. But those are the things, right? And these are the things that are part of our budget that we don't realize our extras, even if they might be apps or, you know, subscriptions, that sort of thing. So really go through a fine-toothed comb. You're going to feel it. All right? Like, you are going to feel that sacrifice,

but that's good. That's how you know it's working. You know, I did a no spin challenge and for the month. And that is what, I think the biggest eye-opening thing was just like the impulse

that I had to do something, even going on Amazon. And I'm like, my kids were like, we need pins. And I'm like, wait, wait, wait. No, we're not.

Well, let's go find what you need. And if it's not what you need, we're not, I mean, I really stuck to it because I think also it just revealed how quickly you're so ingrained in your spending and you really don't know until it stops.

That's right. Until you force yourself to stop to really then realign and say, what do I need? Oh man, Rachel, if you delete Amazon off your phone, you will realize how quickly you just automatically are like,

I can't find the can opener, you know. Oh, oh, it's the worst. Yeah. It's the worst. I need a spatula and I'm like, here's eight in a bulk pack. I'm like, great, perfect.

I'll get eight. Oh, yeah. So terrible, so terrible. Okay, now the tactical way that you guys paid off dead It's what we teach here at Ramsey, but it's the debt snowball. That's right. And there's a lot of like, you should do the dead avalanche because of, you know,

mathematically with interest and all the things. But just talk to me through the process at that journey because it was a long one for you guys. On average, usually it's around that 18 to 24 month period. But you guys. Yeah. It was. It was longer many years. So talk me through like how that was motivating with the dead snowball.

But then also like what were points that were difficult? People that do have a long journey ahead. Yeah. What were the moments that were like, okay, maybe like, I don't know, We need a break. We need to like take a breather here for a second because that has to be a reality. You can't be like scorched earth for six years. Like that's just impossible. Like mental health-wise, you cannot. Yeah, that's right. That's right. You make a good point, Rachel. So first, yeah, you're listing on smallest to largest by balance. And a lot of people can get thrown off by that

because they might be thinking, hey, I have one that's not the smallest balance, but if I paid off today, it'll free it more money, right? Yes. And so there's all these kind of mathematical arguments that mathematically there could be some validity to that, but paying off debt really is psychological, especially whether you have a 24-month journey, a three-month journey for us a seven and a half-year journey, you need to make sure up here is feeling good and feeling strong. And so for us, we found most people have mini debts.

It's not like one or two, it's like eight or nine, right? Whether it's a little medical bill or a little personal loan to their parents or, gosh, tolls that you need to pay, you know, from going through the tolls, on the highway, that sort of thing. So for us, working smallest to largest, in many ways it was like sweeping out or cleaning out a cabinet, right? You pull out all these things and you're like, holy smokes, I have a lot. But when you're able to pick up a pile all at once and toss it or give it to the goodwill, you feel better. And so it's the same way with that debt. If you can knock out those little ankle biters, a $79 debt, a $200 debt, $150, they may seem small and,

you know, inconsequential. But to go from having 10 debts suddenly to 6 feels great. And so don't underestimate that. A lot of times we go straight to the math, but just working of smallest to large, small to largest. Not to mention, and I talked to a girl like on the Ramsey show the other day about this exact same thing, deciding I'm going to work a plan.

I'm going to do what the plan says. I'm not going to come up with my own version. I'm not going to kind of like jury rigged to be. Because if you have a long journey, you need something to anchor into and to say, I'm taking the guesswork out, I'm taking the thinking out and I'm just following the plan that millions of people have followed. So for Sam and I, that was also the thing of like when you're on year three, it's like, let me just re-audit what I'm doing and make sure I'm sticking to the plan and doing what the plan says.

It's just a good kind of like home base to go back to. Well, it's almost more efficient from like a mental caliber, calories perspective where you're just like, oh, I just go back to what I've been doing. I don't have to figure this out. Yes, I know. And the same is true. I'm like, unless, you know, not this sounds prideful. I don't mean for it to be, but like, let the experts be the ones to tell you. Like, I think about the girl that helps us work out and stuff.

She'll say stuff, and I'm like, but I don't really want to do that. And she was like, well, if you want what you're telling me you want, you do have to. Like that. You're coming to me for a reason. That lunge, Rachel needs to be like way hard if you're going to see a result. Yeah. So, like, why try to figure out what feels good to me and what I just think? But like, she knows what she's doing.

So I'm like, I need to do what she's, even though it's painful and it's not fun. But I'm like, if I do want the results that I'm asking her to give me or like for me to have, right, you have to do it. So like, yes, let the experts do it. Like, like, let them do their job and then you do yours on that end. And there is a piece of that. You talked about this briefly. There is a piece of that that if you're in this for the long haul, right? And we probably don't talk about this enough. You do need to take a breather. Right. And so for Sam and I, it was kind of coming up with these moments of saying, you know, once we paid off this debt, right, whether for you could be a $15,000 debt, a $25,000 debt, we're going to do X, Y, Z to celebrate. And so really just building in those milestones, if you can do it a ahead of time, it's better. So you have a plan and you can look forward and go, okay, it's like a rest station. That's good. You know, in a race. Like when I get here, I get to have water, I get to take quick break, and then I'm added again. So those milestones are really important. No, I love that. All right. Before we go on with this conversation, when you lose your employer-sponsored health insurance, there may be a better option than Cobra. Consider Christian health care ministries.

CHM is an affordable, biblically based alternative to health insurance that could be a third of the price of COBRA. Yeah, CHM programs start as low as $98 a month, and CHM helps hundreds of thousands of families take care of over $11 billion in medical bills since 1981. CHM members are also supported spiritually with prayer when they have a medical event. So try getting that with COBRA because you will not. So whether you're going through a job loss, a life change, or just want to consider another option to save on health care costs, check out CHM. Learn more at CHministries.org slash budget. That's cHministries.org slash budget. It's something else that I know contributes to paying off debt. We talk about the biggest

stuff was cutting back spending and then earning extra income. So earning extra money, I feel like is the one I hate the most. Like a part of me is like I would rather cut things. Yeah. Because you're time, right? I mean like you're saying, oh my gosh, I'm going to have to sacrifice the commodity that I think is so precious to so many people. It is our time. And especially if you're working full time to do that extra for a period of time. It does help fast forward the process. 100% because you're earning that extra money. So talk through.

I love all the stuff you guys did because you're pretty creative and you did it in a really smart way because you used what you're already good at. That's right. That helped. That's right. So when you think about raising your income, you kind of think in two ways, right? The first is side hustle. Most of us could benefit from a side hustle.

Even if it's not paying off debt if we're trying to purchase a new vehicle, right? Just like that burst of I'm going to do. this for this amount of time to accomplish a goal. Side hustle is great. And for debt, let me just say if you can do it now, like if you're out there and you're, you know, unattached and you're not, you know, married yet, this is a great time. You have all the time in the world. If you're out there, maybe you are in a relationship, but you don't have children yet. You know, you're single or you're a couple newly married. Do it now because when you do have kids, it does get tougher. You can still do it. But take advantage of the season of life that you're in. Build that, you know, do that side

hustle, build up that extra income, pay off your debt. Right? The other side of it, though, that a lot of us face. And I know for Sam and I was that core income. Because some of us, you know, you're in your career and this is what you signed up to do. But the truth is the income you're making is just not sustainable for you in this season with this debt. And so we do need to look for, what does that mean long term? Is this, do I need to be applying for jobs that pay more? Do I need to be seeking out a path that might be a little bit longer of a path, but it's getting to you to the income you need? So for Sam and I was seven years. of figuring out how to go on that career path so that we could, you know, pay off our debt with our actual income because you can't side hustle forever. Right. That's right. Totally. And you can't side hustle for seven and a half years. So for Sam and I, it was getting in the right career track, which was entertainment. So that's so important. Side hustle until you can get the core income up. I love it. And then the last one is just that stay the course, right? It's just that consistent day in and day out, just doing the thing you're supposed to do. Right? That's going to

help get the progress and the result that you need it, even though it's tiring and exhausting. And again, you're like the perfect model. I'm like the fact that it's like seven and a half years. I mean like it's just wild. Like almost a decade. I know. Oh, I know what you mean. But it is.

I'm like so it's so funny now that we're like good friends and everything. And I know your story for a few years now. And people call and they're like, oh, my God, it's going to take eight months. I don't know if I can. I'm like, I can't even. I know. I know. Like, Jay Horson.

Say I'm like like they did it. Like they did it. And if they can do it, you can do it. Yeah. But it would, I'm sure, I mean, it's the marathon. It's the ultimate marathon that you guys ran. It's tough. And I think the thing that makes me have some empathy towards the callers that maybe

have a shorter journey. That's nice. You have the empathy. Here's the thing. Like, this is what I have found to be true. And I have a feeling that other people find it to be true. Some people have the emotionally, they're kind of bent towards the change, right? Yeah.

You can, you are motivated. Like, your logical brain kicks in and you just go. Like you're not thinking about it. You just put your head down and go. I tend to be like that, but I can only do that for so long. Whereas others of us, it is very emotional. And our mind fills with all the questions. And you're like, okay, I got to get the kids on board.

I got to talk to my spouse. How's this going to work with my job? How is this going? And you start going, going, going. And so there is a part of this that we probably don't talk about enough. But it's very emotional. Yes. Oh, no, totally.

And you cycle through a feeling of, it's like when you go to a conference and you're like ready to go and like run through a wall and you feel great. then you get home and you're like, oh, it wore off. And now I'm just here alone with the things that I have to do. And I'm thinking about the way I grew up and how money felt. And like all of these things that hit us. And so my encouragement would be it's not just a light switch. And if it doesn't feel like a light switch, that is totally fine.

Like getting out of debt is a process. It's like a marriage or a relationship. You recommit every single day. You recommit and say, I am doing this. I'm here for this. I want this. and if it feels like that, that's not bad. It just means you're working through it and it's tough.

Well, and I think what it exposes to is, I was reading a book recently and he said this and I was like, it's so true because I tend to go have the mindset of like, you should just, you should do it. Like, just do it. But he was talking about how willpower only gets you so far. It only gets you so far. And that exposes the roots and the depth of money, you guys.

We talk about this a lot, but I'm like, money, like we just see the budgets and the math up top. But like what it represents? underneath is so much and so much of our, it can be our self-esteem, our identity, the way we do things, our ego. I mean, there's so much wrapped in it. So when you change this knob up here, it shifts the character of who you are, like, to a degree.

And so the willpower, to your point, it can maybe get you, like, getting started, but to keep you going long term, it is a character shift. It is something, the way you're looking at life is different. And that perspective is so different. So true. You're learning that, okay, it's not just me controlling my money. It's me controlling my emotions. It's me controlling myself.

Like, you are so right. It is a much deeper, which is why we say when you change your money, you change everything. It connects to everything. So, yeah. So good. Jade, thanks for coming back on. You're welcome. Anytime.

I'm having you come on. People love you. So I'm always thankful. Thank you. Thank you. Thank you. Thank you. For your message and everything.

And so where can people follow you? Yeah. Always come on to social media. You can find me on. TikTok. You can find me on Facebook. I almost said Twitter, but I guess it's X now. And Instagram, that's where I'm actually, like, Instagram is

where I'm commenting. It's not somebody helping me out. But Jade, I know you have a lot coming up. I'm excited. I like want to say, there's like three things right now. There's secrets, Rachel. This is happening with Jade. But they will come out a lot as they need to come out. But your message will be heard

much grander. From the rooftops. This is what we need. So we love it. We love it. Well, thanks again, Jade. I'm so thankful you got to see that conversation because I want you to know that debt payoff is achievable, but there are a lot of real factors that make it difficult. So be sure to check out why 51% of Americans are struggling in their finances. You can click there or if you're listening on podcasts, click the link below. All right, remember to take control of your money and create a life you love.