Key element in getting out of debt

  • Dave Ramsey

    Dave Ramsey


Dear Dave,

Iíve got about $3,000 in credit card debt. Would it be a good idea to transfer the balance from my credit card to another one that has a much lower interest rate?

ó Tammi

Dear Tammi,

Lots of people who find themselves in your shoes make the switch to low-interest rate credit cards. A lower interest rate will help you save a little money in the short term, but the drawback is it can also make you feel like youíve addressed your problem with debt when you really havenít. Youíve got to change the behaviour and the mindset that put you in that situation in the first place. Besides, most low-interest, or no-interest, credit card offers are only good for a short period of time. Thereís always a catch!

I discovered long ago that personal finance is only about 20 per cent head knowledge and 80 per cent behaviour. Emotion is a key element to getting out of debt and staying out of debt. Youíve got to get really mad at debt, the impact it has on your financial life, and attack it with a vengeance. Think about how many times debt has been a negative influence on your life.

My guess is there were many occasions in the past when you could have done great stuff ó Iím talking about meaningful, important things ó if you hadnít had to send a bunch of money to those bozos at the credit card company every month. I want you to really think about it.

How about this? First, cut up your credit card and close the account. Then, sell some stuff and take a part-time job nights or weekends for just a little while. You could wipe out all your debt in less than a year by doing that and starting to live on a strict, written, monthly budget.

If you donít get mad about it and take a stand against debt, and become determined youíre never going to fall into that trap again, youíre liable to find yourself back in the same situation or worse!

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 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey

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Published Aug 24, 2019 at 8:00 am (Updated Aug 23, 2019 at 7:56 pm)

Key element in getting out of debt

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