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Personal finance expert Dave Ramsey joined ‘Fox & Friends’ to discuss the possibility of the Federal Reserve cutting interest rates and how Americans can avoid spending too much during the holidays.
Holiday spending is putting a huge strain on American wallets and leaving some in debt long after the holiday season; However, personal finance expert Dave Ramsey said “mind-blowing” debt can be avoided.
“The average over the past few years has been that people pay off their credit card debt from Christmas through May,” the Ramsey Solutions personality shared during an appearance on “fox and friends” on Wednesday. “So it takes them about half the year to get back, and since they don’t plan for Christmas… it sneaks up on them like they moved it or something.”
According to a study made to achieveThe average American will spend more than $2,000 by the 2024 holiday season, breaking down the cash outflow into travel and vacation expenses for hosting parties, food, clothing and other gifts.
STOP OVERSPENDING DURING THE HOLIDAYS AND START THE NEW YEAR FINANCIALLY SOLID
Another recent survey of CouponBirds indicated that parents will spend an average of $461 per child and that 49% of parents will go into debt to pay this Christmas.
Dave Ramsey of Ramsey Solutions says you “won’t overspend” if you stick to a Christmas budget. (Getty Images)
The Ramsey Solutions personality took issue with the amount of money disbursed for the season and explained that the vacation should not be a surprise and that expenses should be planned.
“Those numbers are mind-boggling when you look at the averages. A lot of money is being spent,” Ramsey added, “all in the name of happiness comes from thingsand it’s not like that.”
He also weighed in and agreed with the advice of his fellow expert, Ramsey Solutions personality and daughter Rachel Cruze, who suggested making a list of people to shop for and writing down how much to spend on each one.
FOX Business’ Lauren Simonetti details the holiday shopping season on ‘Cavuto: Coast to Coast.’
“You know, I’m old and I met a guy from the North Pole,” the expert joked. “He said ‘make a list and check it twice,’ so Rachel is right.”
Ramsey continued to expand Your daughter’s suggestion: “If you do that, put a name next to it and then add up those dollar amounts, you have what’s called a Christmas budget.”
“If you stick to that, you won’t overspend,” said “The Ramsey Show” host.
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 pointed out what he considers problematic in the Christmas season: not trying Christmas itself, but referring to spending problems.
“The problem with Christmas is not that we like to buy gifts for someone else. That’s a wonderful thing,” he said. “The problem is that we go out of our way and double what we spend because retailers make all their money during this season.”
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Ramsey concluded by advising shoppers to be wary of retailers and not to get caught up in their marketing strategies.
“They are great merchants,” he warned. “They’re great for showing us things we hadn’t planned to buy.”
Ramsey Solutions personality Jade Warshaw discusses the latest economic data that shows consumers’ credit card debt is piling up amid a surge in spending.
