Personal finance expert Dave Ramsey warns of ‘mind-boggling’ Christmas debt
Personal finance expert Dave Ramsey joined ‘Fox & Friends’ to discuss the Federal Reserve’s possible interest rate cut and how Americans can avoid overspending during the holidays.
Holiday spending puts a heavy burden on Americans’ wallets and leaves some in debt long after the holidays; However, financial expert Dave Ramsey said ‘mind-numbing’ debt can be avoided.
“The average over the last few years has been that people pay off their credit card debt from Christmas to May,” Ramsey Solutions said during an appearance on “Fox & Friends” Wednesday. “So it takes them about half a year to come back, and because they don’t plan Christmas … it sneaks up on them like they’re moving it or something.”
According to research by Achieve, the average American will spend more than $2,000 during the 2024 holiday season, breaking down spending on travel and vacations into hosting parties, food, clothing, and other gifts.
STOP OVEREATING FOR THE HOLIDAYS AND START THE NEW YEAR FINANCIALLY STRONG
A recent study by CouponBirds revealed that parents will spend an average of $461 per child and 49% of parents will go into debt to pay for this Christmas.
Dave Ramsey of Ramsey Solutions says “you won’t overspend” if you stick to a Christmas budget. (Getty Images)
This Ramsey Solutions actor hit the bottom of the money released this season when he explained that this holiday should not be a shock, and that its use should be well planned.
“Those numbers are impressive when you look at the scale there. That’s a lot of money coming out,” Ramsey added, “all in the name of happiness comes from thingsand it’s not.”
He also measured and agreed with the advice of his fellow experts, Ramsey Solutions and his daughter Rachel Cruze, who suggested making a list of people to buy and looking at how much money should be spent on each person.
FOX Business’ Lauren Simonetti describes the holiday shopping season in ‘Cavuto: Coast to Coast.’
“You know, I’m old, and I met a guy from the North Pole,” joked the expert. “You said ‘make a list and check it twice,’ so Raheli is right.”
Ramsey went on to expand on her daughter’s suggestion: “If you do that, and you put a name next to it, and you add up those dollar amounts, you have what’s called a Christmas budget.”
“If you stick to that, you won’t overspend,” the “Ramsey Show” host noted.
National Retail Federation CEO Matt Shay reacts to a recent report that holiday spending is expected to reach $989B this year.
The money expert revealed what he sees as a problem with the holiday season – not taking a shot at Christmas itself – but referring back to spending problems.
“The problem with Christmas is not that we enjoy buying presents for someone else. That’s a good thing,” he confirmed. “The problem is that we hit the ground running, and then double what we spend because the sellers make all their money this season.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Ramsey concludes by advising consumers to be wary of marketers and not fall for their marketing tactics.
“They are big sellers,” he warned. “They are good at putting things in front of us that we didn’t plan to buy.”
READ MORE ON FOX BUSINESS
Ramsey Solutions celebrity Jade Warshaw breaks down the latest economic data showing that consumer credit card debt is piling up amid spending sprees.
Source link
