‘Worth unfollowing’: Detroit man blames Instagram reel for landing him in $1 million debt — but Ramsey show hosts say there’s a simple solution for his problem

Bad financial advice

American adults in their 20s and 30s, like Dave, are more likely to find financial advice online. According to a survey by Forbes Advisor and Prolific, 79% of Gen Z and millennial Americans find personal finance information on social media. Findings show that Reddit and YouTube are the most trusted platforms for this advice.

However, social media algorithms are fine-tuned for engagement rather than accuracy. A boring video that recommends index funds based on data may not have the same traction on YouTube as a get-rich-quick cryptocurrency scam with a famous influencer. That’s why some Americans are seeing worse financial outcomes after acting on this bad advice.

Dave admits he was misled when he decided to accumulate investment properties “at the peak of the market” after watching a realtor’s Instagram reel. Now he has a $650,000 mortgage on his primary residence and roughly $350,000 on two investment properties, only one of which is cash flow positive and worth more than he paid for it.

Altogether, Dave is sitting on a mortgage debt pile worth $1 million that’s becoming increasingly difficult to sustain on his $10,000-a-month salary. “Any Instagram reel that causes a million-dollar mistake is one worth unfollowing,” Kamel says.

“I want to be financially free,” Dave says. Fortunately, Kamel and Coleman believe there’s a simple solution to his predicament.

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Course correction

Dave says he’s already made some progress with his personal finances after discovering The Ramsey Show. He used some of his savings to pay off his car loans and has decided to delay buying a new car to avoid consumer debt.

With only mortgage debt to deal with, Kamel recommends selling his entire property portfolio, including the primary residence. Selling all three units should net him $180,000, which Dave can then use to buy a small, cheaper home. Kamel believes Dave should pay no more than $2,500 a month in mortgage payments based on his current salary. “That’s the sweet spot,” he offers.

However, Dave’s reluctant to sell his properties at a loss. He isn’t alone. Many older homeowners feel they’re “locked” into their homes these days. And there’s an emotional component, to be sure. A survey by OpenDoor found that 66% of homeowners over the age of 55 said they were emotionally attached to their property and that made them delay selling or moving out.

Kamel, however, believes Dave’s reluctance could be detrimental. “I don’t think continuing down this path will be a blessing for you,” he tells him.