Christopher from Denver fell into a familiar trap: the allure of online crypto casinos. With just a few months of blackjack play, he racked up tens of thousands in credit card debt — and even more in personal losses.
He called into The Ramsey Show to ask for advice on his spiraling financial situation [1]. He told host Dave Ramsey that he accumulated $37,000 in debt on five credit cards in three months, but his total losses were about triple that — he lost another $60,000 in savings, investments and crypto holdings.
Christopher, 27, has been self-employed for the past five years. Last year he made $88,000 and this year he expects to make around $115,000.
He’s quit gambling, but he’s wondering if he should consolidate his debt because of the high credit card interest rates. But he went to “probably 14 banks” and no one would give him a debt consolidation loan, “partially because of recent behavior” and his poor credit utilization.
“You’re what’s known as a bad credit risk because you’ve been doing stupid stuff,” said Dave Ramsey. And while Christopher agrees, he isn’t sure what to do next. Here’s what Ramsey says could help lower his debt burden on the spot, and what others can do if they’re in a similar situation.
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Call your credit issuer and do this
While Christopher has a total debt of $37,000 spread across five credit cards, his largest debt is about $18,000 on one of those cards. A high annual percentage rate (APR) on a credit card can make it harder to pay off your debt.
The average credit card interest rate is 22.78% (as of September 2025), though rates can range dramatically from 5.75% to 36%, according to WalletHub [2].
If, for example, Christopher has a 25% interest rate on a balance of $18,000, he’s paying $4,500 in interest alone. If he could lower the APR to 15%, he can knock that down to $2,700. In turn, that could help pay off the debt faster.
Ramsey advised Christopher to call his card issuer and tell them that he’s going to move his balance to another provider at a lower rate — and never do business with them again — if they don’t lower his rate today.
“They’ll drop it,” said Ramsey. “And do that with every one of them.”
It’s possible to negotiate a lower interest rate; after all, card issuers make a profit on customers who carry a balance and pay interest. So it’s actually in their best interest to keep you as a customer, even if they’re earning less interest on your debt.
Before you call, scan competitors’ websites for their balance transfer rates (or check your junk mail to see if you have any balance transfer offers). This not only gives you an idea of how much lower your APR could be, but shows your card issuer that you’re serious about taking your business elsewhere.
In some cases, a balance transfer offer may offer a 0% APR for a specified period of time, after which it will flip back to the regular rate.
If the customer service rep won’t help, ask to speak to their supervisor. However, if they do lower your rate, make sure you understand any conditions or terms attached to your new negotiated rate (for example, it may be conditional on paying your bills on time, or the rate could be bumped back up).
If your card issuer won’t lower your rates, consumer credit reporting agency Experian suggests you call again to negotiate periodically: “Changes in circumstances, available card offers and even different customer service representatives may get you the response you want.”
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Pros and cons of debt relief programs
Christopher told The Ramsey Show that banks had tried to push him toward debt relief programs — but Ramsey wasn’t on board with that option.
Debt relief programs consolidate multiple debts into one payment to an intermediary (either a for-profit debt relief company or nonprofit credit counselor), who works on your behalf to settle your debt. This can make repayment feel simpler, but it comes with serious trade-offs.
Pros:
- You may be able to settle for less than the full amount owed
- You only have to make one monthly payment
Cons:
- Debt relief fees can be steep: 15% to 35% of the settled debt, according to Debt.org [3]
- While your debt is being negotiated, interest continues to accrue
- Your credit score will take a serious hit, often for years
Debt relief programs are usually a last resort. Christopher earns roughly $115K annually — enough that he could instead attack his debt aggressively with $3,000–$4,000 monthly payments. That level of cash flow means he isn’t in a position where relief programs are his only choice.
Other debt repayment strategies
If Christopher isn’t able to consolidate his debt, he has other options to pay off his credit cards as quickly as possible. Ramsey suggests:
- The snowball method: Pays off the smallest debt first, while making minimum payments on the others. Once the first card is cleared, apply the freed-up funds to the next smallest balance. This method can give people a sense of accomplishment and momentum to see different piles of debt disappear.
- The avalanche method: Tackle the debt with the highest interest rate first, making minimum payments on the others until the first is paid off. This saves the most interest in the long run.
Both of these strategies can help pay down debt while saving on fees that might come with other options, such as a debt relief program.
Calling his credit issuers and getting his interest rates lowered will help. But “interest rates are not your problem,” says Ramsey. “It’s behavior shift. You’re going to go from an intense gambler to an intense debt repayment guy.”
For people in similar situations, the lesson is twofold: you can sometimes lower your costs with a single phone call, but long-term success comes from changing the habits that created the debt in the first place.
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[1]. The Ramsey Show. ""Why Did It Take Losing $100,000 To Figure Out This Was A Stupid Idea?""
[2]. WalletHub. "Current Credit Card Interest Rates"
[3]. Debt.org. "See what debt-free feels like"
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