Personal finance expert Dave Ramsey joins “Fox & Friends” to discuss the Fed's potential interest rate cut and how to prevent Americans from overspending during the holidays.
Holiday spending puts a lot of strain on Americans' wallets, leaving some in debt well past the holiday season. However, personal finance expert Dave Ramsey says it's possible to avoid “exciting” debt.
The Ramsey Solutions personality shared during an appearance on the show, “The average over the past few years has been that people pay off their credit card debt from Christmas to May.Fox and Friends“On a Wednesday. So it takes about half a year for them to come back, and because they don't plan for Christmas … like they're going to move it or something.”
According to one study Done by Achievethe average American will spend more than $2,000 for the 2024 holiday season, splitting the cash flow into travel and vacation expenses for hosting parties, food, clothing and other gifts.
Avoid overspending during the holidays and start the new year financially strong
Another recent survey It was found by CouponBirds that parents spend an average of $461 per child and 49% of parents will go into debt to pay for Christmas this year.
“You won't overspend” if you stick to a Christmas budget, says Dave Ramsey of Ramsey Solutions. (Getty Images)
The Ramsey Solutions personality disagreed Amount of money spent for the season while explaining that vacations shouldn't be shocking and should be paid for.
“Those numbers are pretty amazing when you look at the averages,” Ramsey added. Happiness comes from thingsAnd it's not.”
He also reviewed and agreed with fellow expert Ramsey Solutions personality and daughter Rachel Cruz, who suggested making a list of who to shop for and noting how much you'd spend on each.
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“You know, I'm old and I met a guy from the North Pole,” the expert joked. She said make a list and check it twice, so Rachel is right.
Ramsey continued by expanding it His daughter's suggestion: “If you do that, and you put a name next to it, and then you add up those dollar amounts, you have something called the Christmas budget.”
“If you stick to it, you won't overspend,” the “Ramsey Show” host noted.
Matt Shay, CEO of the National Retail Federation, reacts to the latest report that holiday spending is expected to reach $989 billion this year.
The money guru mentioned what he thinks is a problem with the holiday season — not that you don't take pictures at Christmas itself — but the cost issues.
“The problem with Christmas isn't that we enjoy buying someone else a present. That's a wonderful thing,” she assured. “The problem is we're chasing ourselves and doubling our costs because retailers make all their money this season.”
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Ramsey concluded by advising shoppers to be careful with retailers and not fall prey to their marketing strategies.
“They are big businessmen,” he warned. “They're great at putting things in front of us that we weren't going to buy.”
Ramsey Solutions' Jade Warshaw analyzes the latest economic data showing that consumer credit card debt is piling up amid rising spending.