Ramsey Solutions founder David Ramsey addresses rising consumer credit card debt in ‘Cavuto: Coast to Coast.’
Consumers have faced a number of challenges as inflation has pushed up the price of everyday household items.
That leaves many relying on credit cards and rewards programs to try to cushion the blow.
It’s a strategy personal finance expert Dave Ramsey opposes.
“We have seen decades since we were in this bad position. And people are going to fix the inflation problems, the pressures with the wrong tool,” Ramsey said during an appearance on “Cavuto Coast to Coast.” “And the credit card is the wrong tool. It’s going to cause them problems later. He comes home to sleep. It’s very sad.”
Personal finance expert and author Dave Ramsey (False images)
Ramsey has some advice to help people navigate through record inflation and data that technically puts the US in a recession.
He recommends a long-term strategy where you look at what you’re doing in ten years.
HOW INFLATION IS IMPACTING TRAVELER COSTS
Ramsey says that if you borrow on credit cards to maintain a lifestyle exactly where it was in an inflationary cycle, that’s not going to project well ten years out.
“Where does that go? Where does that take me? Then that kind of critical thinking will take you back to budgeting.”
“Whatever you’re doing, look to the future and say, where is that going? Where will that take me? Then that kind of critical thinking will take you back to budgeting.”
RAMSEY INFLATION SURVIVAL TIPS
Budget for the future, plan for the next decade Maintain 401(k) contributions, retirement savings Reduce credit card loans Stop luxury purchases, frivolous spending
Ramsey also recommends cutting back in some areas, like buying a luxury item, until this inflationary period is over.
Purchases, especially for expensive items, should be stopped during inflationary periods. (AP/AP newsroom)
“We have to control in our own homes the controllables. What happens in your house if you’re watching this is much more important than what happens in the White House. So don’t let these external variables destroy your future if you don’t control.” you,’ Ramsey added.
INFLATION IS STILL WIPPING OFF THE AVERAGE WAGE EARNINGS OF AMERICANS
“What happens in your house if you’re watching this is much more important than what happens in the White House.”
Ramsey was asked about people who took out loans when rates were very low and whether they would come out ahead.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
“When you give away your income, whether at a low interest rate or not, in the form of payments, and you don’t put the same amount of money into your 401k or your Roth IRA and good growth stock mutual funds with a long track record, is dooming your future,” Ramsey said.
Dave Ramsey is the author of the book “Baby Step Millionaires.”
Source: www.foxbusiness.com