Many Americans struggle with paying bills, buying groceries, and paying for gas, but they also aim to save for retirement and their future financial happiness.
Dave Ramsey, the radio host and bestselling personal finance author, sends a strong message on how people can better their lives by adhering to financial planning that makes them feel more secure.
And he has motivated people to do just that, as evidenced by an August 19 account from a Ramsey follower in an email sent by Ramsey Solutions to TheStreet.
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A report from the Federal Reserve Bank of New York found that credit card balances rose by $27 billion in the second quarter of 2025, reaching $1.21 trillion, which matches the previous year’s all-time high.
The Ramsey follower identified himself as Marshall, who asked a question with which Ramsey engaged.
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“Your plan has really changed our financial lives, and our relationship, for the better over the last three or four years,” Marshall wrote. “My wife and I went from living paycheck-to-paycheck, and having a mountain of debt, to being debt-free except for our home and getting a great start on saving for retirement.”
“It wasn’t always easy, but we made it happen by working together and sticking to your plan,” he continued. “At this point, my wife and I often wonder why so many people are willing to live like we used to? We can’t imagine going back to that now.”
Dave Ramsey ponders Americans’ resistance to changing debt habits
Ramsey responded to the question with words of encouragement and thoughts about why people make financial decisions that are not in their best interests.
“Wow, thank you so much for all the kind words. I’m really proud of you two,” he wrote. “Just remember one thing: I may have shown you a path and given you some encouragement, but you two put in all the hard work and made the many sacrifices that got you where you are now. Congratulations!”
“To answer your question, there are lots of reasons some folks resist making changes in their lives,” Ramsey added. “Often, one of those things is denial. Ninety percent of solving a problem is realizing, and admitting, a problem exists.”
“I’m convinced one of the major factors keeping people from winning with money is they don’t realize they even have a problem — or won’t admit it.”
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Dave Ramsey has a warning on apathy about debt
Ramsey suggests that fear may be a major factor for people who aren’t making financially beneficial changes.
“If you’re apathetic because you think things like debt and living paycheck-to-paycheck are just normal parts of life, you’ll be unwilling, or sometimes afraid, to make the big changes necessary to achieve big results,” he wrote.
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Ramsey further explored the idea that bad habits in Americans’ understanding of how to deal with money are part of an unfortunate mindset.
“Debt is so ingrained into our culture that most Americans can’t envision college without student loans, or a car without huge payments for five or six years,” he wrote.
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“We’ve been sold on the idea of debt so aggressively that most folks don’t believe a decent life is even possible, unless hundreds or thousands of dollars in payments are attached,” Ramsey added.
As Ramsey also noted, the notion that change is painful can cause people not to act in ways that would be helpful in the long term.
Dave Ramsey explains the ignorance factor in debt and going broke
“Most people won’t change what they’re doing or how they’re living, until the pain of where they are is greater than the pain of change,” Ramsey wrote. “No matter who you are, where you are financially right now is largely a sum total of the life decisions you’ve made up to this point.”
“There are some folks who experience unfortunate, life-altering things, but in most cases, if you don’t like where you are, you have to acknowledge the fact that things need to change,” he continued. “You have to acknowledge the fact that you need to change.”
Ramsey finished with another thought.
“And finally, there’s usually an element of ignorance involved,” he wrote. “Don’t get me wrong. I’m not calling anyone stupid. I’m talking about a lack of good information.”
“The good news is learning new things isn’t that hard. You just have to admit you don’t have all the answers, and set your mind to studying and educating yourself on the topic at hand,” he explained. “Because if you’re not careful, what you don’t know about money will make you broke and keep you broke.”
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