Go Into Debt to Get a Raise at Work?

May 3, 2026

AI Summary

5 min read

A caller on The Ramsey Show debates taking a loan for a reliable truck to unlock a 20-33% raise from his boss, who currently lends him a vehicle. Host Dave Ramsey firmly advises against debt, emphasizing the man's recent release from prison and fragile stability as reasons to save cash instead.

The Job and Vehicle Dilemma

The caller cleans swimming pools as a subcontractor, requiring extensive driving. His 2001-2004 Ford F-150 lacks an engine and is worthless beyond salvage value of about $1,000. Fixing it would cost $5,000, or he could buy a running truck for $5,000-$6,000. His boss, who trained the caller's father and has family ties dating back to the caller's childhood, promises a raise equivalent to 20-33% across the board once he has his own vehicle. The caller has worked in this field since age 15 but only restarted last week after personal turmoil. He sees the math working: his current net pay is $33,500 annually (gross around $30,000 after 1099 taxes), so a 20% raise adds about $7,000 a year, breaking even on the truck cost after one year.

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What you'll learn

1 (00:11) **Caller Presents Dilemma** - Subcontractor pool cleaner needs reliable vehicle for driving job; boss offers 20-33% raise if he gets one, considering $5-6k loan for new truck.
2 (00:49) **Job and Income Details** - Earns $33.5k net/$30k gross after 1099 taxes; 20% raise equals ~$7k/year, breaking even on truck cost after one year.
3 (02:52) **Life Destruction Event Revealed** - Mental health crisis led to family violence, prison for 2 years + 5 months; out only one week.
4 (04:06) **Core Advice: No Borrowing** - Debt is unwise given fresh instability; drive boss's truck, save cash for vehicle instead.
5 (04:53) **Budget Breakdown** - Zero-based EveryDollar budget breaks even: $300 gas (105 gallons/month), $250 personal rent, $500 wife's rent.
6 (05:50) **Urges Patience and Stability** - Slow down after impulsive life events; "be boring" to rebuild steadily.
7 (07:05) **Debt as Voluntary Prison Analogy** - Borrowing recreates prison-like control by bank, demanding work regardless of circumstances.