Personal finance expert Dave Ramsey is sharing the “fastest way” people can get out of debt.
On his podcast, The Ramsey Show, the savings expert highlights ways people can tackle their money problems.
Debt continues to be a major factor affecting peoples’ finances with Wallethub recently coming out with data highlighting the severity of the issue.
Americans have raked up $1.23trillion in credit card debt which is seven percent higher than last year, after adjusting for inflation.
In a recent clip, Mr Ramsey addressed the fastest way people can get out of debt with the average person doing so within 18 months to two years.
Included with the clip was the caption: “What’s the fastest way to get out of debt? #debtsnowball #debtfree #debthelp #payoffdebt #broke #moneytok #moneytips #creditcarddebt #studentloandebt.”
The saving expert explained: “You list your debts from smallest to largest. You pay minimum payments on everything but the little one.
“You attack the little one with a vengeance. Scorched-earth lifestyle. Sell so much stuff the kids think they’re next. Take 16 extra jobs. We’re getting out of debt.
“You pay everything. You stop investing temporarily and completely focus all your emotional, spiritual, financial, and relational energy on that smallest debt. Everything goes on that.
“When that one’s gone you take the payment that used to be there and any other money we can squeeze out of our budget and we throw it at number two.
“When that one’s gone, we take the payments from one and two.”
According to Mr Ramsey, the “snowball rolls on” and subsequent debt amounts are then tackled using the money which would have been reserved for other payments.
Mr Ramsey added: “The average person for the past 25 years that has done that with great focused intensity, going crazy to the point their broke friends and relatives thought they needed counselling.
“They shaved their head. They drank the Kool-Aid. They get out of debt in about 18 to 24 months. Everything but their house.”
Those interested in getting more advice on debt-related issues can follow Dave Ramsey’s TikTok channel for more guidance.