Tucker Carlson asked Dave Ramsey why he’s against credit cards — and was blown away by his answer. Here’s why
Tucker Carlson asked Dave Ramsey why he’s against credit cards — and was blown away by his answer. Here’s why
Dave Ramsey is notoriously anti-debt. On several episodes of his podcast, The Ramsey Show, the financial guru has encouraged his callers to avoid nearly all forms of non-housing consumer debt, especially credit cards.
In a recent interview with political commentator Tucker Carlson, Ramsey challenged the concept of credit cards altogether.
“It’s fairly recent that it’s so pervasive, that it’s just necessary for life — and it’s not,” he told Carlson. “I don’t have credit cards, I haven’t in thirty something years.”
Carlson immediately asked Ramsey for an explanation.
“What’s wrong with having a credit card if you pay the balance every month?” he asked.
Ramsey simply replied: “Most people don’t.”
He says that 78% of consumers with credit cards don’t actually pay the balance off every month.
“Everybody talks about this theoretical discipline that they just freaking don’t have,” Ramsey said.
He claims the stat came from Federal Reserve data, but recent sources suggest the story about credit card debt is much more nuanced.
Credit cards are one of the most ubiquitous financial products in the country. According to recent data from the Federal Reserve, 82% of U.S. adults had at least one credit card in 2023.
Although the debt burden is expanding, consumers seem to have a better handle on it than Ramsey thinks.
The Fed says more than half of all credit card holders have been paying off their balances every month in recent years. Only 47% of credit card holders carried over a balance for at least one month in the 12 months leading up to the fourth quarter of 2023. In fact, this ratio has been at or below 50% since 2020, according to LendingTree’s analysis of Federal Reserve data.
Granted, Ramsey is right to be talking about debt. Households are swiping their credit cards more in recent years. Total household credit card debt has jumped from $680 billion in the third quarter of 2014 to $1.17 trillion in the same quarter of 2024, according to the Federal Reserve.
Consumerism is certainly part of the reason for this surging debt burden. However, the rising cost of living is also reflected in this growing debt pile.
Civic Science found that 25% of the Americans they surveyed in 2024 said they had to take on credit card debt to purchase gas, groceries or other essentials at least once. Of this group, 16% said they had to do so every month.
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Based on this data, consumer discipline may not be as “theoretical” as Ramsey claims. Instead, many consumers might be borrowing because they have few alternatives to afford basic necessities during an inflation crisis. But the majority of credit card holders are following the golden rule of paying off the balance every month.
Nevertheless, nearly half of all cardholders are still struggling to pay off their balances every month. If you’re part of this cohort, here’s how you can stay on track in 2025.
Read more: 82% of Americans are missing out on a savings account that pays over 10 times the national average
To stay disciplined with credit card debt this year, it may be a good idea to automate your monthly payments to avoid missed deadlines and late fees. According to LendingClub, the majority (68.4%) of Americans manually pay their balance off every month, which makes it easier to forget.
You can also get a better idea of your net worth and create a detailed budget, allocating a portion of your income specifically to credit card payments — prioritizing high-interest balances first.
Or, you could consider the debt snowball method for quick wins. On his website, Dave Ramsey recommends paying off smaller balances first because it’s more psychologically rewarding and therefore easier to sustain.
You can also try to negotiate lower interest rates with issuers if you have good credit or limiting new charges by using cash or a debit card for discretionary spending. Remember to regularly review statements for accuracy and reward yourself for hitting milestones to maintain your motivation.
A few new habits can help you manage debt more efficiently, while still owning a credit card.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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