Cathy from Buffalo, New York, told “The Ramsey Show” she lost about $15,000 after lending money to her uncle to help cover her grandfather’s hospital bills.
She said the money came from savings she built while working throughout college. After hearing that her uncle told her “you can go into debt“ instead of repaying her, personal finance host Dave Ramsey reacted bluntly: “What a butthole.”
Cathy said she worked consistently through college and managed to save about $25,000 by her senior year. The money, she said, was meant to support her transition after graduation, including transportation, rent, food, and other necessities.
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That plan changed when her grandfather was hospitalized during the COVID pandemic. Cathy said her uncle asked to borrow money to help pay the medical bills and told her she would be repaid within a year, once his wife found a new job.
She agreed and sent about $15,000. Over time, the repayment did not materialize. Cathy added that her parents were already in conflict with her uncle over money, leaving her without meaningful family support.
Co-host George Kamel asked what protections Cathy had in place, and she said she has an email referencing repayment but no formal contract. When Cathy followed up about repayment, she said her uncle told her to go into debt and said he would pay her back later.
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Ramsey responded sharply, saying the responsibility never should have landed on a college student.
He said hospitals do not repossess people over unpaid bills and that payment plans, negotiations or delayed billing are common. He added that pushing the burden onto a 21-year-old with limited income reflected poor judgment and a lack of character.
Kamel said Cathy’s reliability likely made her an easy target, adding that responsible people are often pressured precisely because they are dependable.
Ramsey told Cathy she had two options. One was to call her uncle again, ask for the money and lower her expectations about getting it back. The other was to hire an attorney and sue, with the understanding that it would end the relationship. He said neither option was good, but told her to make a decision and move forward.