New Delhi, September 21 (Patrika English News): Personal finance expert Dave Ramsey has renewed his criticism of the Credit Card industry, calling it “the cigarette of the financial world” and warning people not to trust advice from card companies.
On his show, Ramsey responded to a Florida nurse earning $138,000 who had just paid off six credit cards. When she mentioned that a company advised her against closing accounts to protect her credit score, Ramsey was blunt: “We don’t take advice from credit card companies on anything.”
Ramsey argued that credit scores mainly serve lenders, not consumers. “There’s only one thing a credit score is good for: borrowing more money. Going into debt. Which is kind of the opposite of having money for retirement,” he said.
The financial coach also noted that most people fail to pay balances in full. “According to the data, 78% of people carry balances month to month. That’s the great lie,” Ramsey told Tucker Carlson in an earlier interview.
Ramsey, who hasn’t used a credit card in more than 30 years, insists debit cards provide the same convenience without risk. He added that using plastic changes spending behavior, with people spending 12–18% more compared to using cash.
Criticizing cashback rewards, Ramsey said: “You’re going to run 100 grand through your card to get $1,000 back? On what planet does that build wealth?”
He blamed credit card dependence on decades of powerful marketing. “It’s cultural conditioning. We’ve been taught don’t leave home without it. But it’s not an altar to worship at,” he said.