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Dave Ramsey is notoriously anti-debt. On several episodes of his podcast, The Ramsey Show, the financial guru has encouraged his callers to avoid nearly all forms of non-housing consumer debt, especially credit cards.
In a recent interview with political commentator Tucker Carlson, Ramsey challenged the concept of credit cards altogether.
“It’s fairly recent that it’s so pervasive, that it’s just necessary for life — and it’s not,” he told Carlson. “I don’t have credit cards; I haven’t in thirty-something years.”
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Carlson immediately asked Ramsey for an explanation.
“What’s wrong with having a credit card if you pay the balance every month?” he asked.
Ramsey simply replied: “Most people don’t.”
He says that 78% of consumers with credit cards don’t actually pay the balance off every month.
“Everybody talks about this theoretical discipline that they just freaking don’t have,” Ramsey said.
Lack of alternatives, not discipline
Credit cards are one of the most ubiquitous financial products in the country. According to recent data from the Federal Reserve, 82% of U.S. adults had at least one credit card in 2023, and by the third quarter of 2024, the number of credit card accounts had reached an all-time high of 600.53 million.
Growing credit card debt is a sign of expenses exceeding income. Taking control of your spending and getting out of debt starts with having a clear, organized view of your entire financial picture.
Monarch Money’s expense tracking system makes managing credit card debt easier. The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending.
By linking your credit card accounts, you can monitor your payment progress in real-time and set specific goals to get out of credit card debt faster.
For a limited time, you can get 50% off your first year with the code NEWYEAR2025.
Getting control of your debt
To stay disciplined with credit card debt this year, it may be a good idea to automate your monthly payments to avoid missed deadlines and late fees. According to LendingClub, the majority (68.4%) of Americans manually pay their balance off every month, which makes it easier to forget.
Another creative way of managing your credit card debt is by making your everyday purchases work harder for you with Acorns.
When you link your bank account, every time you make a purchase, Acorns automatically rounds up the amount to the nearest dollar and deposits the spare change in a smart portfolio. The portfolios are customized based on your risk tolerance and include ETFs managed by pros at the world’s top investment firms like Vanguard and BlackRock.
Instead of these small amounts disappearing into impulse purchases, they’re collected and can be directed toward building savings.
When you sign up now with a recurring deposit, you can get a $20 bonus investment.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Debt strategies
You can also get a better idea of your net worth and create a detailed budget, allocating a portion of your income specifically to credit card payments — prioritizing high-interest balances first.
Or, you could consider the debt snowball method for quick wins. On his website, Dave Ramsey recommends paying off smaller balances first because it’s more psychologically rewarding and therefore easier to sustain.
Another option is consolidating your revolving debt with a fixed-rate personal loan from Credible.
By consolidating your high-interest credit card balances into a single personal loan with between 6.94% and 35.99% APR, you could reduce your monthly payments and save on interest charges.
Credible makes this process simple and easy. Instead of spending hours researching different lenders and filling out multiple applications, you can view and compare personal loan offers from various trusted lenders in minutes—all in one convenient place.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
