Personal finance expert Dave Ramsey has warned Americans that rising credit card debt and a reliance on paycheck-to-paycheck living could threaten long-term financial stability.

Credit Card Debt Hits Record $1.21 Trillion As Americans Struggle To Keep Up

Americans are facing mounting financial pressures, from household bills to rising grocery and gas costs, while trying to save for retirement. reported by The Street

According to the Federal Reserve Bank of New York, credit card balances surged $27 billion in the second quarter of 2025, reaching $1.21 trillion, matching last year's all-time high.

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Ramsey's Guidance Helps Families Break Free From Paycheck-To-Paycheck Living

Ramsey, a radio host and bestselling author, continues to advocate for disciplined money management. In an August 19 email shared by Ramsey Solutions, a listener named Marshall shared how Ramsey's guidance transformed his finances.

"Your plan has really changed our financial lives, and our relationship, for the better over the last three or four years," Marshall wrote.

"My wife and I went from living paycheck-to-paycheck, and having a mountain of debt, to being debt-free except for our home and getting a great start on saving for retirement. It wasn't always easy, but we made it happen by working together and sticking to your plan."

Ramsey responded, praising the couple's efforts while noting why many Americans struggle to change financial habits.

"Often, one of those things is denial. Ninety percent of solving a problem is realizing and admitting, a problem exists," he wrote.

"If you're apathetic because you think things like debt and living paycheck-to-paycheck are just normal parts of life, you'll be unwilling, or sometimes afraid, to make the big changes necessary to achieve big results."

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Ramsey Warned Americans Against Debt Traps, Poor Spending And Risky Financial Moves

On a February 2024 episode of The Ramsey Show, Ramsey shared caller stories to warn against common financial mistakes.

He cautioned against buying a house with someone you're not married to, criticized upgrading cars using insurance payouts, and highlighted the pitfalls of taking on massive student debt for low-paying "passion" careers, calling such choices "dumb" and a "Fruity Pebbles meltdown."