Dave Ramsey's advice for getting out of debt

Dave Ramsey, CEO of Ramsey Solutions, explains what it will take for you to get out of debt.

Transcript

00:00Student loan debt is a big problem, all-time high.

00:03So what's your most important advice for young people who are trying to get out of debt?

00:11Just cut everything. The deeper you cut, the more your friends think you're crazy

00:18because you're doing nothing. The faster you get out. It's math. And so deep, deep sacrifice

00:26increases the speed at which you get out of debt and the probability. And that deep sacrifice could

00:32include working three jobs. It could include, for a short period of time, you just go bananas.

00:38But the typical family that we coach on the Ramsey show or in our classes or those kinds of

00:44things are able to clear off all of their personal debt in somewhere around 18 to 24 months. But that

00:5018 to 24 months is hell. It's awful. You just work all the time. You don't see the inside of a

00:57restaurant unless you're working there. You're not going on vacation. People think you're crazy.

01:01Your mother-in-law thinks you need counseling. I mean, you're just going bananas for a short

01:06period of time here. But that two years is the catalyst that blows the lid off the math

01:11and allows you to build wealth the rest of your life.