It's no surprise to anyone that average Americans face many financial difficulties as they strive to erase debt and plan for the future.
Personal finance coach Dave Ramsey frequently engages with people who seek money advice in an effort to help them escape their troubles, and more importantly, achieve their dreams.
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In a recent exchange between Ramsey and a woman identifying herself as Kellye, a question was raised that likely is relatable to many people.
"Dear Dave," the advice seeker wrote in an email sent to TheStreet from Ramsey Solutions. "How do you feel about people taking money out of savings to pay off credit cards? I have an emergency fund in place, like you recommend, and a savings account. I also have about $5,000 in credit card debt. What’s your take on this?"
Ramsey addressed the question with one blunt word of advice and then an alternative approach.
"Honestly, I’d rather see you pick up a side job nights or weekends," he wrote. "That’s not a ton of debt, and you could have it paid off in just two or three months with a decent part-time job. Plus, it’d keep your savings intact."
"But if you’re determined to do it your way, I’ll give you a couple of guidelines," Ramsey continued. "Number one, don’t wipe out your savings to make this happen. The second? Cut up the credit cards, close the accounts and never go into debt again."
Ramsey then added some further thoughts on his sentiment about the situation Kellye was confronting.
Dave Ramsey drives home a major financial point
Ramsey followed up with important advice about who is responsible for the problem.
"Now, whatever you do, here’s something I want you to understand," he said. "And I need you to really hear me when I say this, OK? The credit cards aren’t the problem. The debt you’ve racked up on the credit cards isn’t really the problem, either. Both of those are just symptoms of buying things you don’t need, with money you don’t have, in order to make yourself feel better momentarily, or impress other people."
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Ramsey then clarified his view on the subject, with no reservations about his thoughts.
"You won’t find the real problem until you take a good, long, honest look in the mirror," he wrote. "It’s you. You’re the problem. Whether it’s because of overspending, a lack of income or just simply being disorganized, you (and your behavior with money) are the problem."
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Dave Ramsey says being truthful to yourself is the first step to financial success
Ramsey explained that his point of view was simply an honest approach and that he did not mean to offend her.
"I’m not trying to be mean, but do you get what I’m saying?" he asked. "Being successful with your finances is 80% behavior, and only 20% knowledge. Your everyday habits and mindset go a long, long way in determining whether you’ll live from paycheck-to-paycheck — and in debt — or gain control of your money and become a financial success."
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He added his view that because an accepted behavior is common does not mean it's financially healthy.
"Being broke and weighed down by debt is normal in today’s culture," he wrote. "If you’re not already doing this, and it sounds like you’re not, I want you to start living on a written, monthly budget. I’ve got a feeling you don’t know where your money’s going right now. Doing this, and giving every dollar of your income a job to do before the month begins, is the best way I know of to get control of your money."
"Because if you don’t, a lack of money and planning will control you!"
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