Author: Monique Danao

When Amanda from Tampa found herself in a tough spot after her car broke down following a hurricane evacuation, she didn’t want to ask for financial help — but her parents stepped in to help anyway.

However, what she didn’t know at the time was that their “help” came in the form of a $30,000 home equity line of credit (HELOC), with $11,500 of that unofficially tied to her.

“My parents ended up helping out,” Amanda explained on a recent episode of The Ramsey Show.

“What they ended up doing was taking out a HELOC on their house to cover [my car] and a few other things. I wasn’t aware of this until afterwards. But they’re the kind of people where strings are attached.”

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Her father coordinated the repair with a mechanic friend and paid him directly. She never saw the money — or the full terms — but soon found herself repaying $300 a month.

Family help turns into dilemma

Even more troubling, Amanda did not know the terms of the loan. She only discovered the full HELOC amount by accident.

“I saw a receipt sitting on a table that I shouldn’t have.” she recalled.

The details raised immediate red flags for cohosts Jade Warshaw and John Delony.

“I think they wanted to take out a HELOC, and I think you gave them a good excuse to do it,” Warshaw said.

“And I think I would treat this like the IRS — put [it] at the very top and pay it off as fast as humanly possible,” Deloney chimed in.

Amanda, a single mom who said she’s recovering from a difficult marriage and job loss, told the cohosts that she was just starting to get back on her feet when the surprise debt surfaced.

“I was in a bad place because I had no income and I have a three-year-old,” she said.

Though Delony initially advised her to prioritize the HELOC like an IRS debt, Warshaw quickly reversed course once the full story came to light.

“Go in the Baby Steps order,” she said, urging Amanda to treat the repayment like any other debt in her ‘snowball’ — and not to let her parents’ emotional pressure override her financial plan.

“If they put strings on there, that’s on them,” she said.

Warshaw advised Amanda to tell her dad, “I’m going to pay you back this $11,500. I’m not going to pay it back at 8% interest because I would not have told you to go into debt to do this if you had asked me.”

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

When financial ‘help’ causes more harm than good

Amanda’s story highlights a difficult dynamic that many families face: when help is offered without it being asked for — and comes with strings attached.

Unsolicited financial assistance, especially when paired with vague terms or expectations, can undermine autonomy, strain relationships and create a sense of obligation where there was never a request.

Here are a few healthier alternatives to navigate family financial support:

• Ask before offering. Before jumping in to “fix” a situation, ask the person if they want help — and what that help should look like. This respects their own agency and opens the door to collaborative problem-solving.

• Offer choices, not ultimatums. Instead of saying, “We’ll take care of it,” families can present options. “We can offer you a loan, or we can help you find a used vehicle. What feels best for you?”

• Use gifts, not loans. If you can afford to help, consider offering money as a gift rather than a loan. This removes a possible power dynamic and might help avoid resentment down the road — especially when repayment isn’t clearly defined.

• Set clear terms in writing. If a loan is necessary, put the details in writing. Include repayment terms, interest (must be charged for loans over $10,000) and what happens in case of late or missed payments. Clarity helps everyone feel secure.

• Respect boundaries. Once the decision has been made, back off. Don’t use past help as leverage or a tool for guilt. Financial support should never be weaponized.

Ultimately, helping a loved one should build trust — not debt.

“You help your kid by buying a $1,500 used Camry with 300K miles,” Deloney said. “You don’t take out an $11K loan at 8% and haggle your single-mom daughter.”

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

When 74-year-old David Carr of Cleveland opened the letter from the Social Security Administration (SSA), he was unprepared for what it said.

The SSA told him that his late wife, Deb Carr — who died in March 2020 — had somehow collected $1,700 in unemployment benefits between March and September 2020. He was notified that he must repay the entire amount, even though it appears someone else claimed those payments.

Carr relies on Deb’s survivor benefits to help care for their two adult children who have special needs.

“That was like a… like a knife right in the ribs,” said Carr. “And I thought, man, I can’t take that because they’ve already lost their food stamps.”

The urgency to repay the money threatened the family’s ability to cover rent, utilities and medical expenses.

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Challenging the claim

Suspicious of the claim, Carr secured a certified copy of his wife’s death certificate. Armed with this documentation, he visited his local SSA field office — only to be rebuffed.

“The guy wouldn’t even talk to me,” Carr recalled. “How could she collect six months of benefits when she passed away in March?”

Left with no recourse, he enlisted the help of News 5 Investigators to press SSA for answers.

After News5 reached out on his behalf, Carr says SSA representatives finally agreed to review the case.

“We’re going to get a letter to you showing that you are cleared from all of this,” Carr was told in a phone call that reduced him to tears. The erroneous overpayment notice has since been rescinded.

How often do overpayment notices occur?

While the SSA disburses benefits to nearly 74 million Americans each month, overpayment notices are not rare.

An audit by the SSA’s Office of Inspector General found that from fiscal years 2015 to 2022, the agency made about $72 billion in improper payments. Moreover, the SSA had an overpayment balance of $23 billion in 2023.

There were approximately 333,000 reported claims of fraud, waste, or abuse in SSA programs and operations.

The overall rate of improper SSA payments is below 1% of the total benefits paid for that period. Nevertheless, even a small percentage of errors can have outsized consequences for households living on fixed incomes.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Protecting your benefits

Recipients who receive an unexpected overpayment notice can take several steps to safeguard their finances:

• Gather Documentation: Collect death certificates, bank statements and any relevant correspondence before contacting SSA.

• Contact SSA Promptly: Call 1-800-269-0271 or file an inquiry online at SSA.gov to initiate a formal review.

• Seek Advocacy: Nonprofit organizations, ombudsmen and local experts can guide beneficiaries through appeals and complex paperwork.

• Monitor Annual Statements: Review your SSA benefit statement each year and enroll in My Social Security to receive electronic notices and so you can detect discrepancies quickly.

For David Carr, prompt action and outside support made all the difference. His experience shows that beneficiaries should never dismiss alarming notices — even when they feel like it’s a nightmare to tackle.

Recipients can defend their lawful benefits by staying vigilant, documenting details diligently and demanding accountability. Being proactive also helps manage uncertainty that comes with a wrongly issued bill.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

It was Destiny who called The Ramsey Show from Orlando with a heartfelt plea for guidance and was met with compassion and tough love from host Dave Ramsey.

At 24, Destiny is raising her one-year-old son alone while living in a domestic violence shelter. She’s behind on her car payments, works part-time delivering for DoorDash, and owes $18,000 in debt due to her son’s mounting medical expenses.

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Her son was born with hypoplastic left heart syndrome, a serious congenital condition requiring multiple surgeries. Although his condition has stabilized, doctors are now assessing him for autism, and the demands of ongoing therapy have left Destiny financially and emotionally drained.

“You are a warrior,” [Ramsey] (https://www.youtube.com/watch?v=QHp7rAdcciA) told her. “You’ve lost a few battles, and you’re going to keep fighting, princess. You’re a warrior princess.”

Priorities over payments

While Destiny wanted to focus on paying down her debt, Ramsey was quick to shift her mindset.

“I don’t care about the $18,000,” he said. “They can’t get anything from you, darling. You don’t have anything.”

Instead of fixating on the debt, Ramsey urged her to first build a stable foundation.

“If I’m in your shoes, my first job is to create a stable home situation, not get out of debt,” he advised. That means securing stable housing, income, and childcare before even considering paying creditors.

The most urgent concern? Her car. Destiny admitted she was about $1,000 behind on payments.

“We do need to worry about the $1,000 on the car,” Ramsey said. “We gotta get that straightened out, and I’m going to help you with that, okay?”

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Building a stable life one step at a time

While Ramsey typically prioritizes debt repayment, he made it clear that, in this case, it could wait.

“First, we take care of you and the boy,” he said.

He and his co-hosts recommended a step-by-step action plan to stabilize her situation:

• Build a simple budget: Prioritize essentials like rent, utilities, food, transportation, car payments and child care. Even setting aside a small amount each month for savings or emergencies can help.
• Apply for benefits: Programs such as SNAP, WIC, Medicaid, and child care subsidies can help cover basic needs. These resources are there to make sure struggling families have access to food, health care and safe daytime care while they work or look for work.
• Use local job centers and shelter resources: Domestic violence shelters and workforce centers often partner with employers and nonprofits to help women reenter the job market. She can access resume workshops, job training and leads for full-time roles with stable hours.
• Secure transitional or affordable housing: Rapid Rehousing programs or church-based aid can help with rent deposits and short-term accommodations. Once she’s in a stable home with a steady income, then it’s time to revisit the debt.

Ramsey promised to connect Destiny with a financial coach at no cost and help her find a supportive church community.

“Eighteen years from now,” he said with a note of hope, “you’re going to be standing there when [your son] walks down, gets his high school diploma and is getting ready to head off to college, and you’re paying for it, and you’re going to be smiling.”

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A long-dormant copper mine in Beaver County, Utah resumed operations earlier this year under new ownership.

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It was closed in 2019 amid a slump in the price of the metal due to trade war fears. But in 2023, Milford Mining acquired it and began hiring workers, according to a recent Fox 13 report.

The company has struck a deal to sell its copper to Rio Tinto Kennecott — operator of the Bingham Canyon mine and the Magna smelter — signalling confidence in the price of the metal staying high.

From dormancy to revival

Brendan Moseley, the CEO of Milford Mining, told Fox 13 the mine’s reserves can support production for eight to nine more years, and the company is planning an expansion to increase capacity.

"It’s fantastic for rural Utah. We are currently about 105 full-time and direct employees, plus another 35 to 45 contractors. As we progress towards our expansion which we announced in April, we’ll continue to hire more construction workers," he said.

In May, Deseret News reported that Milford Mining has so far invested $40 million to modernize its mining facilities and plans to invest $200 million for the expansion.

"This investment is projected to create more than 1,000 new jobs over the next 10 years in Beaver County, offering vital economic opportunities for rural Utahns," said the report.

The project aligns with broader U.S. efforts to secure domestic sources of critical minerals and reduce dependency on imports.

The mine’s reopening shows how rural communities can benefit from favorable market conditions and trade policies. As the demand for copper rises, similar sites across the country could be reopened.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Why demand for copper is surging

This month the price of copper reached record highs after President Trump announced a 50% tariff on copper imports beginning August 1.

Copper —the “metal of electrification” – has many industrial and everyday uses. It is also critical for the transition to clean energy.

"That’s the electrification of the automobile industry. There is a massive need for more electricity in data centers. You hear a lot on the federal level about more manufacturing. Whether it’s copper wire, whether it’s plumbing, electronics, or electric cars. Copper is critical in everything we touch as humans," said Nate Foster, the managing director for Rio Tinto Kennecott, to Fox 13.

According to the International Energy Agency, the demand for copper is set to surge as countries look to expand their electricity networks, and the current copper mine project pipeline points to a 30% supply deficit by 2035. In other words, demand is expected to far outpace supply.

A similar report by S&P Global found that achieving the Net-Zero Emissions by 2050 goals will translate into copper demand surging by over 82% from 2021 to 2035.

The demand is driven primarily by the transition to cleaner vehicles and the broader electrification of the economy. Electric vehicles alone use up to four times more copper than their internal‑combustion engine vehicles. Similarly, wind turbines, solar farms, and data centers require extensive wiring and cabling.

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

When Kellen Mullen toured what was advertised as a move-in-ready flip, she was sold on the glossy new kitchen, sparkling bathrooms and fresh paint.

“It had a new kitchen; it had new bathrooms; it was freshly painted,” Mullen told WCPO.

But within days of moving in, her dream home began to unravel.

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A cascade of failures

First, a brand-new vent cover collapsed onto the toilet mid-use. Then, when she turned on the stove’s exhaust fan, the kitchen side of the house lost power due to faulty wiring.

A few days later, the kitchen sink backed up while she washed the dishes. A plumber spent 10 hours on site only to uncover tree roots clogging the main sewer line.

By the time Mullen finally cleared the drains, she was out nearly $20,000 in emergency repairs.

Mullen reached out to both her realtor and the flipping company’s agent, only to be told they were unaware of any issues and not legally obligated to cover post-sale fixes.

Her realtor advised that legal counsel may be her only recourse. Once sale documents are signed, the sellers are not liable for any undisclosed defects.

"We’re stuck with a $20,000 problem, and somebody knew,” Mullen said. “Somebody knew there was a problem and didn’t tell the next person, and we got stuck with it."

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Why house flips can be risky

House flippers aim to maximize their profits by minimizing both the time and cost of renovations.

They’re not homeowners, rarely live in the renovated property and often cut corners on critical systems — such as wiring, plumbing, and structural components — to shore up cosmetic appeal.

As one home inspector blogger put it, “Most of the time, flippers buy these homes in poor condition with the plans of putting lipstick on a pig. They make it look great on the surface but not so great underneath.”

Experts agree that a thorough, independent inspection is the most effective safeguard against potential issues.

"Throughout the transaction, it’s all about trying to reduce costs,” said Nick Gromicko, founder of the International Association of Certified Home Inspectors (InterNACHI). “And I think when you’re going to get to a home inspection where you’re spending only hundreds of dollars to look at something that costs hundreds of thousands of dollars, it’s time to stop thinking like that.”

Consumer Reports recommends choosing a licensed, certified inspector who offers specialty add-ons, such as mold testing, sewer-line camera scopes and radon measurements — even if not mandated locally.

Here are more tips to make sure you get the right property:

• Get an inspector outside your area: Hire an inspector outside of your local area to avoid a conflict of interest between the inspector and your realtor.
• Demand a master inspection report: Ask for detailed findings and repair estimates to use in negotiations — or as a basis to walk away.
• Attend the inspection yourself: A quality inspector will point out telltale signs, such as poor drainage on the property, roof issues and plumbing problems, which are red flags.
• Research the home’s history: Pull tax and deed records to see if the property was held long-term or flipped rapidly. Multiple quick turnovers can be a red flag.

While a flip can deliver a turnkey property, Mullen’s experience underscores that buyers must look past the lipstick.

By investing in a truly independent, comprehensive inspection and verifying work histories, you safeguard both your budget and peace of mind. You don’t end up paying twice for someone else’s shortcuts.

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

At 64 you may feel ready to swap office fluorescent lights for morning walks.

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However, it’s good to first learn about retirement’s hidden costs, like surprise home repairs or medical bills Medicare won’t cover, as you plan your golden years.

Before you believe you have it all mapped out, consider these often‑overlooked expenses that can quietly erode your nest egg.

The tax trap

Many retirees assume their savings withdrawals won’t carry the same bite as a paycheck — and that can be a costly mistake. Pension and 401(k) distributions are taxed as ordinary income, and when combined with Social Security benefits, they can push you into a higher tax bracket than you’d planned for.

How your retirement income will be taxed also depends on which state you live in. Certain states like Florida are considered more tax-friendly for retirees. Remember to account for state taxes on pensions or retirement account withdrawals if you’re planning a move.

Working with a tax professional to model your retirement income streams is critical. Consider Roth IRA conversions now if you think your tax rate is going to be higher in the future.

The good news is President Donald Trump’s so-called “big, beautiful bill” includes additional, but temporary, tax deductions for seniors earning below a certain amount each year.

Longevity risk

If you’re budgeting to age 85, but your family genes — and your doctor — say 95, you could outlive your savings by a decade.

A modest 3% annual inflation rate will nearly double your living costs over 25 years. Suddenly, that extra cruise around your 90th birthday or unexpected inflation spikes can knock a big hole in your balance.

Consider using the 4% rule to calculate a safe withdrawal rate for your portfolio since it is meant to make your savings last for 30 years.

Speak with a financial advisor to make sure your portfolio is diversified and has the right asset allocation for your risk tolerance and investing horizon.

Delaying receiving Social Security benefits until age 70 can increase your benefit by 8% per year. Research shows that this is the right decision if you expect to live several years past life expectancy.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Family support for adult children

Just because your children are grown doesn’t mean they’re immune to financial crises — and many retirees find themselves footing the bill for weddings, down payments or even bailouts. In a Pew survey, nearly 60% of parents of young adults between the ages 18 to 34 said they gave financial help to a child in the past year.

A Savings.com study says parents spend an average of $1,474 a month on their adult children or $17,688 annually. Over a 20‑year retirement, that’s potentially $353,760 diverted from your own living expenses.

Have candid conversations with your kids well before you retire. Set clear boundaries — perhaps automating a one‑time gift rather than an open‑ended support fund. If you have the means, consider a formal loan agreement or gift that caps your liability.

Dental care expenses

Routine cleanings, crowns, root canals and dentures often fall outside Medicare coverage — and out‑of‑pocket dental costs can eat deeply into a retirement budget.

According to KFF, average out-of-pocket spending for Medicare beneficiaries using dental services reached close to $1,000 in 2016. More complex procedures like implants and bridges run from anywhere between $1,500 to $6,000 on average.

Unexpected issues, such as emergency extractions or periodontal treatment, can be prohibitively expensive.

To save money, explore standalone dental insurance plans or discount dental membership programs that cap annual costs. If you’re still working part‑time or have HSA savings, allocate funds in an HSA before retirement —withdrawals for qualified dental expenses are tax‑free.

No retirement plan is bulletproof. By recognizing these less‑obvious pitfalls — and building in strategic safeguards — you’ll be better equipped to enjoy the next chapter without unwelcome surprises.

What to read next

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• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Home buyers in Las Vegas are walking away from contracts in increasing numbers.

High interest rates, financial anxiety and an oversupplied market are pushing many to rethink their purchases before closing.

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A recent Redfin report found 14.3% of U.S. homes under contract in April were canceled, marking the second-highest April cancellation rate on record, behind only the pandemic-era spike in April 2020.

In Las Vegas, the rate was even higher: 18.6% of purchase agreements fell through, placing the city eighth among major U.S. metros for canceled deals.

Here are two of the main reasons for the growing trend.

Reason 1: Financial concerns

Higher mortgage rates and skyrocketing home prices are driving many to the brink. The average 30-year fixed mortgage rate hit 6.85% in June, more than double what it was during pandemic lows. That kind of increase can add hundreds — even thousands — to monthly payments when taxes and insurance are included.

“Groceries have been high, gas has been high, utilities have been high,” said Jillian Batchelor, a Southern Nevada realtor, in an interview with 8 News Now. “So buyers are more payment-conscious or payment-savvy than they really ever have been.”

And with inflation still weighing on American households, some prospective buyers are having trouble securing final approval. Others are rethinking whether they can afford the total cost once they see the final numbers — including homeowners association (HOA) fees and insurance premiums.

Redfin agents nationwide are also seeing buyers hesitate due to broader economic and political instability — including layoffs, tariffs and federal policy uncertainty. Another recent Redfin survey found that nearly 1 in 4 Americans scrapped plans for a major purchase this year due to tariffs.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Reason 2: A flood of choices

The housing market in Las Vegas is also experiencing a surge in listings.

“[A] buyer goes under contract,” Batchelor told 8 News Now. “And all of a sudden a week later they see, ‘oh there’s five more homes available in that neighborhood, this one might be nicer, this one might have more upgrades.’”

With inventory now at a five-year high nationally, according to Redfin, this scenario is becoming increasingly common — especially in states like Nevada, Texas and Florida, where new home construction has surged.

Buyers feel less pressure to settle, knowing there may be better deals just around the corner.

That confidence is reshaping buyer behavior. According to Redfin’s report, five of the 10 metros with the highest cancellation rates are in Florida — which is a sign that growing supply can tip the scales in favor of consumers.

A warning sign for the national market?

While Las Vegas may be an extreme case, the underlying issues — affordability and market saturation — are national in scope.

From Riverside, California to Atlanta, Georgia (which led the country with a 20% contract cancellation rate), buyers are hitting the brakes.

This shift may suggest that while the housing market may be cooling, affordability is still out of reach for many Americans.

Still, Redfin economists predict some relief later in 2025, with home prices expected to drop modestly as demand softens. In the meantime, buyers are urged to do their research, stay flexible and be ready to walk if the numbers don’t add up.

As Batchelor put it, “All of this is just an adjustment to probably (…) equalize the playing field — maybe a little bit more.”

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Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Christy spent the last 14 years as a stay-at-home mom in Sioux Falls, South Dakota, raising six children, ages four to 18.

Her husband of nearly 20 years recently dropped a bombshell that he plans to file for a divorce this summer, and she’s worried she’s unprepared for the financial fallout.

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“I’ve had a little bit of part-time income, which works with our kids’ schedules, but essentially everything’s valued under him so to speak,” she told personal finance expert Dave Ramsey when she called into his show recently and explained her situation.

“Holy moly,” responded Ramsey.

Hidden debts and a looming legal battle

The couple once tackled debt together — in 2010 they paid off every loan.

However, in 2020, when the couple refinanced their house, Christy’s husband confessed that he had been using credit cards and was carrying debt. They rolled those balances into their mortgage, and he promised he would get rid of the credit cards.

Earlier this year, she discovered he had driven up nearly $60,000 in credit card debt. Again, they tapped home equity, taking a second mortgage to cover sky-high interest charges.

“Things went downhill really quickly after that,” she said. “I’m a preschool teacher to try to make money because I can have my son with me … I just found out that he hasn’t been paying my life insurance.”

She said her husband, who earns about $117,000 a year, is still living in the family home but avoids her and doesn’t communicate with her about the kids. He remains under their roof even as he pulls back from every other obligation.

Ramsey’s response was blunt but reassuring: the law would make sure her family is secure.

“ Your legal rights in most states with six children and a 20-year marriage are, he’s not gonna have much of that one $117,000 left by the time he finishes with alimony and child support. It is almost all gonna go to you and the kids,” he said. “So you’re not going to have to take care of the kids and feed them and pay the house payment on a part-time daycare salary.”

He urged Christy to meet with an attorney — and to insist her husband move out immediately. She said she has scheduled that meeting to clarify her legal rights under South Dakota law.

“You need to start taking a position of strength on this,” said Ramsey.

As for her husband’s credit card debt, the good news is most states, including South Dakota, follow common-law property rules. According to Experian, this means courts in these states usually hold the spouse who incurred the debts solely responsible for repayment. You usually would only be responsible for credit card debt solely in your name, joint credit card debt in both your name and your spouse’s or credit card debt from an account that you cosigned for your spouse, even if not owned jointly.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Preparing financially for a divorce

Even stay-at-home parents can shore up their finances at the first hint of divorce. Here are some ways to prepare yourself for this shift:

• Document every dollar: Gather tax returns, bank statements, investment account statements, pay stubs, mortgage statements, insurance policies, credit card bills and all other financial documents. Keep copies in a secure physical or cloud-based location to build a clear record of income, assets and liabilities.

• Separate your accounts: Open a personal checking and savings account, plus at least one low-limit credit card in your name. Even small balances build a credit history, which may be critical if you need to rent or buy independently.

• Build a budget: Use a zero-based budgeting tool to track all expenses and identify where to stretch every dollar. Factor in immediate needs (housing, utilities, groceries) and plan for one-income realities.

• Establish an income plan: Leverage skills you can monetize quickly: childcare, tutoring, virtual assistance, freelance writing or bookkeeping. For example, Christy found work as a preschool teacher, which allows her to bring her four-year-old to class.

• Secure new insurance: Shop for individual insurance policies to protect your children and yourself. Obtain quotes now and compare costs before coverage gaps occur.

• Build an emergency fund: Even $500 set aside can cushion against immediate crises — car repairs, medical bills or gaps between paychecks.

• Seek professional guidance: A family-law attorney will explain alimony and child-support rules in your state. A financial planner or credit counsellor can help you manage debts and rebuild your credit.

Christy’s road ahead will not be easy, but a proactive approach can transform chaos into control. By documenting finances, securing her accounts and crafting a realistic budget with a path to income, she can navigate from uncertainty to stability — and ensure her six children come through this transition with their needs met.

What to read next

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• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Mike Abatecola, an exotic car owner, recently bought a Lamborghini from Vladimir “Val” Ranguelov, Dealer Principal of Bul Automotive in Albany, New York.

A short while after, Abatecola says, Ranguelov persuaded him to sell the car back to him for an upgrade — so he did. But the dealership failed to pay off the remaining loan balance.

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By the time Abatecola realized what had happened, Ranguelov had already taken the car, leaving him $200,000 in debt.

Thanks to the FBI, Abatecola was reunited with his luxury vehicle in June.

But he’s still in shock.

“I’m still numb,” he told WNYT NewsChannel 13. “I don’t make that kind of money to be robbed.”

From dream car to financial nightmare

After Abatecola approached the FBI and shared his story online, more than a dozen other buyers responded with similar complaints. Ranguelov had two dealerships, Bul Automotive in New York and Karma Automotive in Jacksonville, Florida, which abruptly ceased operations in June.

After the FBI got involved, Abatecola’s Lamborghini was recovered. However, the tangled web of unpaid loans and potential second-buyer claims remains under investigation. Affected customers are now exploring a class-action lawsuit.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How many auto thefts occur in the U.S.?

Abatecola’s ordeal comes amid a nationwide slowdown in vehicle theft and related fraud. The National Insurance Crime Bureau (NICB) found U.S. auto thefts totalled 850,708 in 2024 — down 17% from 2023.

The District of Columbia led with the highest rate of 842.40 reported thefts per 100,000 residents, followed by California, with 463.21 thefts per 100,000 residents.

Though theft rates have decreased recently, auto criminals have grown more sophisticated in recent years. From title washing, which involves wiping anything perceived as negative — like salvage status or flood damage — from a used vehicle’s record to VIN cloning, which masks stolen or damaged vehicles with legitimate identification numbers, it’s difficult to know what you’re really buying.

“Criminals are employing increasingly sophisticated methods to steal vehicles, including advanced technology to bypass security systems,” warned NICB CEO David J. Glawe in a 2023 report. “From keyless entry hacks to relay attacks on key fobs, perpetrators exploit vulnerabilities in modern vehicle security measures with alarming success rates.”

How to avoid an auto scam

To protect yourself from fraudulent schemes, prospective buyers and sellers should follow these essential precautions:

• Obtain lender payoff statements: Before handing over your vehicle, try to secure a bank-issued document confirming that any previous loans are fully satisfied.

• Ensure an immediate title transfer: Make sure the seller initiates a legal title transfer in your name at closing; unexplained delays are a major red flag.

• Run a comprehensive history check: A good tip is to use the National Motor Vehicle Title Information System before buying a vehicle you’re interested in.

• Scrutinize online offers: Be wary of below-market prices, vague listings or sellers who resist in-person inspections.

Abatecola’s saga underscores the fact that anyone can fall victim to an auto scam — despite the decline in reported thefts. How you buy a vehicle — and who you buy it from — deserves just as much thought as how you protect and insure your vehicle after you buy it.

By demanding complete documentation and staying vigilant against fraudulent deals, car buyers can keep their dream machines — and their savings — out of the hands of fraudsters.

What to read next

• You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.