Recently, a 52-year-old man was called to the “Ramsey Show” to discuss the $12,000 credit card debt he accumulated on 27 credit cards. host Dave Ramsey He specializes in helping people get out of debt, and he told callers to take Dramatic action.
“Cut them all up. All of them,” Ramsey said of his credit card. Ramsey explained that callers should cut out their credit cards.
That may sound dramatic, but the caller must focus so that his life depends on it. That’s how Ramsey sees it. While getting your finances right will create more opportunities, long and long credit card debts will make it much more difficult to invest your money and build long-term wealth that you will need to retire when you are ready.
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Ramsey also shared several strategies to get out of credit card debt. These suggestions are specifically addressed to callers, but anyone can use these tactics to trim their credit card balances.
Ramsey recommends first stopping bleeding by calling the caller not using a credit card. Ramsey believes that callers can get out of debt in a few months, and that’s plausible. The caller has $12,000 in credit card debt and earns $200,000 a year.
Ramsey tried to identify callers who have high pay but still have the vices that bring in debt. The caller mentioned the $4,000 electric lawn mower, but was reluctant to provide information. The 52-year-old man was announced later in the call to provide financial support to him. The caller said he offers $15,000 in support to him every year, but Ramsey assumed there was more. He told the callers to stop giving money to the ex and focus only on the kids.
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Ramsey also told callers to write detailed budgets. This advice was especially helpful as I had vague ideas about how the callers were spending their money. Callers may know how they allocate their money, but may want to keep some of that information private.
A clear budget defines how you spend your money. But it also establishes a way that you don’t spend money. Ramsey said that if it’s not on your budget, you can’t spend money on it. Stick to your budget requires discipline, but it’s extremely rewarding. Callers should be able to quickly repay $12,000 if they keep costs to a minimum and maintain a salary of $200,000 a year.
