3 Reasons Not to Listen to Dave Ramsey

Dave Ramsey is a popular financial guru many people swear by. His tough-love advice has helped countless people get out of debt and take control of their budgets. But while there’s no doubt that his methods can be effective, they aren’t one-size-fits-all. 

Ramsey’s approach can be a bit extreme, and in personal finance, balance is key. Here are three reasons why blindly following his advice might not always be the best idea — and what you can do instead.

1. Not all debt is bad debt

Ramsey is famously anti-debt, encouraging people to pay off every penny as quickly as possible. While it’s great to be debt-free, not all debt is inherently bad. High-interest debt like credit cards? Sure, pay that off ASAP. However, certain types of debt can be beneficial if managed wisely. 

Take mortgages, for example. A home can be a valuable asset that appreciates over time, and a mortgage allows you to build equity. 

Instead of rushing to eliminate every ounce of debt, focus on the high-interest liabilities while allowing yourself to use low-interest debt to build long-term wealth. Finding a balance is essential for financial success.

2. Credit cards aren’t the enemy (when used responsibly)

Ramsey’s war on credit cards is legendary. To him, credit cards are the gateway to financial disaster. But while it’s true that irresponsible use of credit cards can lead to trouble, when managed well, they can actually offer some significant benefits.

Credit cards can help you build credit, earn rewards like cash back or travel points, and even provide fraud protection. 

For example, responsible credit card users can score free flights, hotel stays, or even a chunk of cash back just by using their cards for everyday purchases — provided they pay off the balance every month. Ramsey’s advice is to cut up your credit cards and never look back, but that might be an overreaction for people who are disciplined with their spending.

Instead, use credit cards wisely. Set boundaries, never carry a balance, and take advantage of the rewards. It’s all about balance, not elimination.

3. Child care isn’t a “stupid” expense — it’s a necessity

One of Dave Ramsey’s most controversial moments was when he shamed a dad on his show for spending $80,000 a year on child care, calling the expense “stupid.” Ramsey’s advice was to “downgrade” to cheaper child care options, as if affordable, quality care is just waiting around the corner for everyone. This out-of-touch response highlights a major blind spot in his financial advice: the real-world cost of raising a family today.

The truth is, child care in the U.S. is incredibly expensive. According to Care.com, over half of parents spend more than 27% of their household income on child care, and in some areas, like major cities, those costs can skyrocket. For working parents, especially in dual-career households, paying for daycare, nannies, or after-school care is often unavoidable. Ramsey’s advice doesn’t offer any practical solutions for families facing these costs — it just shames them for trying to make it work.

Parents shouldn’t feel guilty for investing in quality child care. Instead of feeling pressured to cut corners, look into tax credits, community resources, or nanny shares to help ease the financial burden. But at the end of the day, child care is an essential expense for many families, and there’s no shame in that.

Ramsey’s advice has helped many people get out of debt and build better financial habits. But it’s important to remember that personal finance is personal, and what works for one person might not work for another. Ramsey’s methods tend to be all-or-nothing, but the key to long-term financial success is finding balance.