My mortgage payment is eating most of my paycheck – here’s what Dave Ramsey told me to do

Christy Bieber

Tue, May 19, 2026 at 9:16 AM EDT 5 min read

Buying a house is a big life milestone for many people, but sometimes it can cause financial trouble. For example, one caller to the Dave Ramsey Show explained that his housing payments were eating up a huge percentage of his budget and causing him to have money problems as a result.

Ramsey had some very blunt advice for the caller, and it's advice everyone needs to hear if they are struggling with mortgage payments that take up too much of their income.

Key Points

• A recent caller to the Dave Ramsey Show admitted he’s spending about 50% of his pay on his housing costs.

• Ramsey said he has to sell the house and he has no choice.

• Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

What should you do if your housing payment takes all your money?

The caller to the Ramsey show explained that he is currently paying $2,090 in monthly mortgage payments while his household income is just $4,200 per month. Upon hearing these numbers, Ramsay said there was only one course of action open to the caller: "You have to sell the house,” Ramsey explained. "You don’t have a choice. Your house payment is 50% of your take-home pay. You can’t do that."

Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Obviously, Ramsey is 100% correct that spending 50% of monthly payments on a home is not sustainable. Devoting this much of your money to your property means you are not going to have nearly enough left to live on or to do other things like invest for retirement. You need to have spare funds for current essentials and also to save an emergency fund and save up for retirement since you can't live on Social Security alone.

The 2026 Housing Market Reality Check

While Ramsey’s standard advice to sell is direct, the current 2026 macroeconomic landscape introduces significant complications. Average 30-year fixed mortgage rates continue to hover between 6.3% and 6.57%, driven by a steady Federal Reserve benchmark rate anchored between 3.5% and 3.75% due to sticky inflation. Consequently, giving up an older mortgage with a 3% or 4% interest rate to buy a less expensive home can actually lead to an identical or even higher monthly payment. Furthermore, while national housing inventory has edged up roughly 2.3% year-over-year, properties remain highly competitive, and entering the pressurized rental market may not offer the financial relief a homeowner expects.