Taking out a loan for someone you love might seem like a gesture of trust and commitment — but if the relationship ends, you could be stuck with the debt.
That’s exactly what happened to Lily, a woman from New York who called into The Ramsey Show to speak with hosts Ken Coleman and George Kamel.
Lily took out a $35,000 loan to help her then-boyfriend pay off his credit card debt. The loan, at an 11.49% interest rate, was in her name — because he couldn’t qualify for favorable terms on his own. Now the relationship is over, he’s moved out, and Lily is solely responsible for the debt.
Her ex has been making minimum payments of $951 per month, but that won’t pay down the balance quickly. He recently agreed to increase payments to $2,000 a month and said he’s willing to sign a contract.
The issue? He only earns $1,000 a week — making Lily’s goal of having the loan repaid within a year highly unlikely. She called the Ramsey team looking for ways to pressure him into faster repayment, but that’s not the advice she received.
“Legally, you took on the debts,” Kamel pointed out. “You signed up for this awful ride… you don’t have any recourse.”
Legally, Lily has few options. Because the loan is in her name, she is solely responsible for the debt. While Kamel and Coleman mentioned the possibility of taking her ex to small claims court, New York’s small claims limit is $10,000 — well below the remaining $30,000 balance — and there’s no guarantee the court would rule in her favor.
Instead, the hosts urged Lily to stop hoping her ex would follow through and focus on aggressively paying off the loan herself. With no other debt and a take-home income of $10,000 to $12,000 per month, they said she could eliminate the loan in just six months — especially if she pauses investments. Her monthly expenses are around $4,500, giving her significant room to make progress.
“You’ve got to control the controllables — and that means paying off your debt that’s in your name,” Kamel said, bluntly.
They also suggested she get a roommate to help offset rent costs, which doubled after the breakup.
