Ramsey Show Caller: $400K SBLOC Costs $1,600/Month in Interest

Adrian Volenik Tue, July 21, 2026 at 10:30 AM PDT 6 min read

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Borrowing against stock has become a well-known strategy among some of the world's wealthiest people. Instead of selling shares and triggering capital gains taxes, they can use their stock as collateral to access cash while keeping their investments intact.

But for one caller to the recent "The Ramsey Show," the strategy has resulted in a monthly interest bill he is no longer comfortable carrying.

Tyler, from Dallas, told personal finance expert Dave Ramsey that he has a securities-backed line of credit with about $400,000 outstanding. The loan costs him roughly $1,600 a month in interest alone, and he wanted advice on whether he should use some of his cash to pay it down.

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Ramsey Says the Debt Has to Go

Tyler shared that he inherited about $1.4 million in stock earlier this year. Since then, he has sold some shares to buy a home and pay it off, while also ending up with two paid-off rental properties. He still has about $550,000 in stock and another $180,000 in Treasury bills.

He said he used the SBLOC to buy another rental property and to pay off vehicle loans because the interest rate on the line of credit was lower than the rates on the cars.

Ramsey was not convinced.

"So, you have two rental houses that are paid for and a house that you're living in that's paid for. And you got $550,000 in stock," Ramsey summarized. "Just sell a bunch of it and pay the loan off."

When Tyler explained that his financial adviser thought selling stock to eliminate the debt would be a mistake because the investments were appreciating, Ramsey strongly disagreed.

"I think your financial advisor is a moron," he said. "I got two words for him. You're fired."

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Ramsey argued that using borrowed money to pay off other loans didn't eliminate debt.

"That's not paying off a debt. It's moving the debt," he said. "You moved the debt."

Instead, Ramsey urged Tyler to sell his Treasury bills and enough stock to become completely debt-free.

Who Should Make the Financial Decisions?

The discussion ended with Ramsey making a broader point about the relationship people should have with financial professionals.

"Your financial advisor, your lawyer, your certified public accountant, your doctor, your whatever professional works for you," he said. "They don't tell you what to do."

Ramsey said financial advisers can give helpful advice, but the final decision should always belong to the client. He also said people should remember that some advisers get paid to manage investments, so they may not be eager to recommend selling those investments to pay off debt.

While securities-backed loans have become popular among ultra-wealthy investors, Ramsey's advice to Tyler was clear: eliminate the debt, even if it means selling appreciating assets.