1 week ago 4

A 52-Year-Old Man Who Owes Money On 27 Credit Cards Gets An Ultimatum From Dave Ramsey: 'Chop Them All Up. Every One Of Them'

Marc Guberti

Sat, Apr 12, 2025, 7:31 AM 4 min read

A 52-year-old man recently called into "The Ramsey Show" to discuss the $12,000 in credit card debt that he has accumulated on 27 credit cards. Host Dave Ramsey specializes in helping people get out of debt, and he told the caller to take drastic action.

"Chop them all up. Every one of them," Ramsey said of the credit cards. Ramsey explained that the caller should cut up his credit cards.

It may sound dramatic, but the caller has to get focused like his life depends on it. That's how Ramsey sees it. Getting your finances right creates more opportunities, but being in credit card debt for too long makes it much harder to invest money and build the long-term wealth that you need to retire when you are ready.

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Ramsey also shared some strategies for getting out of credit card debt. While these suggestions specifically cater to the caller, anyone can use these tactics to trim their credit card balances.

Ramsey first recommends that the caller stop the bleeding by not using his credit cards anymore. Ramsey believes that the caller can get out of debt in a few months, and it is plausible. The caller has $12,000 in credit card debt and earns $200,000 per year.

Ramsey tried to pinpoint if the caller had any vices that resulted in the debt despite having a high salary. The caller mentioned a $4,000 electric lawn mower but was reluctant to give any information. It came out later in the call that the 52-year-old man provides financial support for his ex. The caller said he gives $15,000 in support to his ex each year, but Ramsey assumed it was more. He told the caller to stop giving money to the ex and focus exclusively on the children.

Ramsey also told the caller to write a detailed budget. This advice was especially useful since the caller had a fuzzy idea of how he was spending his money. It's possible that the caller knows how he is allocating money but wants to keep some of that information private.

A clear budget defines how you will spend your money. However, it also establishes how you will not spend money. Ramsey said that if it's not on your budget, you can't spend money on it. While sticking to a budget requires discipline, it's very rewarding. The caller should be able to pay off $12,000 quickly if he minimizes expenses and maintains a $200,000 annual salary.

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