Credit cards are not the problem

  • Credit cards: do not blame them for your financial difficulties

    Credit cards: do not blame them for your financial difficulties

Dear Dave,

How do you feel about taking money out of savings to pay off credit cards?

ó Peggy

Dear Peggy,

Iím okay with this under two conditions. One is that you cut up the credit cards, close the accounts, and never use those things again. The second is that you donít wipe out your savings in the process. Leave something in there, so youíre covered in the event of an emergency. Then, rebuild your savings as fast as possible once the debt is out of your way.

You have to understand, too, that credit cards arenít the problem. The credit card debt isnít the problem, either. They are just symptoms of buying things you donít need, with money you donít have, in order to impress people.

Take a long look in the mirror, Peggy, because the person whoís looking back at you is the problem. Overspending, disorganisation, not earning enough Ö whatever label you want to slap on this situation, you are the reason for the problem. Once you understand and accept that, and you start living on a budget and staying away from debt, youíll have taken your first real steps towards financial peace!

ó Dave


Dear Dave,

Iím 35, single, and I have no dependents. Do I need a life insurance policy?

ó Larry

Dear Larry,

In your situation, if you have enough cash saved up to pay your final expenses ó and you donít have any debt ó thereís no reason for you to carry a life insurance policy. No one will be harmed financially by your death, and no one would be deprived of the income that would be lost if something unexpected happened to you. Even if you have a mortgage on a home, the house will normally sell for enough to pay off the mortgage.

However, if you have debt, or if you donít have some money stashed away in savings, you might want to consider an inexpensive term life insurance policy. At your age, if youíre healthy, you can get $100,000 worth of coverage for just $10 to $15 a month.

Remember, you donít buy insurance to leave an inheritance. You buy life insurance is to make sure thereís enough money to take care of your family and final expenses. You wouldnít want your parents or someone else having to foot the bill!

ó Dave

Dave Ramsey is CEO of Ramsey Solutions. He has authored seven bestselling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at and on Twitter at @DaveRamsey

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Published Sep 1, 2018 at 8:00 am (Updated Aug 31, 2018 at 8:59 pm)

Credit cards are not the problem

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