Personal finance expert Dave Ramsey joined “Fox & Friends” to discuss the possibility of the Federal Reserve cutting interest rates and how Americans can avoid overspending during the holidays.
Holiday spending puts a huge strain on American wallets and leaves some in debt long after the holiday season; However, personal finance expert Dave Ramsay said “staggering” debt can be avoided.
“The average over the last several years has been people paying off their credit card debt from Christmas to May,” the Ramsey Solutions personality shared during an appearance on “Fox and friendson Wednesday. “So it takes about half the year to come back, and because they don’t plan for Christmas…it creeps up on them like they’re moving it or something.”
According to a study Conducted by an investigationthe average American will spend more than $2,000 for the 2024 holiday season, dividing cash outflow into travel and holiday spending on hosting parties, food, clothing and other gifts.
Stop overspending during the holidays and start the new year financially strong
Another recent poll by CouponBirds noted that parents will spend an average of $461 per child and 49% of parents will have to pay off their debt for Christmas this year.
“You won’t overspend” if you stick to a Christmas budget, says Dave Ramsey of Ramsey Solutions. (Getty Images)
Ramsey Solutions character declined Amount of money bombed For the season, making it clear that vacation shouldn’t come as a shock, and that spending on it should be planned.
Ramsey added: “Those numbers are amazing when you look at the averages out there. That’s a lot of money going out, all in the name Happiness comes from thingsAnd he doesn’t.”
He also weighed in and approved the advice of fellow expert, Ramsey Solutions personality and daughter Rachel Cruz, who suggested making a list of who to shop for and noting how much to spend on each.
FOX Business’ Lauren Simonetti breaks down the holiday shopping season on “Cavuto: Coast to Coast.”
The expert joked: “You know, I’m old, and I met a man from the North Pole.” “He said ‘make a list and check it twice,’ so Rachel is right.”
Ramsey continued by expanding His 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,” the “The Ramsey Show” host said.
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 expert pointed to what he sees as the problem with the holiday season — not trying to celebrate Christmas itself — but falling back on spending issues.
He stressed, “The problem with Christmas is not that we enjoy buying gifts for someone else. This is a wonderful thing.” “The problem is we are paying our butts off and doubling what we spend because retailers make all their money during this season.”
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Ramsay concluded by advising shoppers to be wary of retailers and not fall for their marketing strategies.
“They are great traders,” he warned. “They’re great at putting things in front of us that we didn’t plan to buy.”
Ramsey Solutions personality Jade Warshaw analyzed the latest economic data showing consumer credit card debt is piling up amid a jump in spending.
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