When billionaire Mark Cuban joined Dave Ramsey on The Dave Ramsey Show in 2014, the two delved into a topic that remains relevant today: credit card debt. Ramsey and Cuban didn’t exactly hold back, and what they had to say is worth a second listen — especially for anyone who thinks credit cards are just a harmless tool.
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Cuban said bluntly, “If you use your credit cards, you don’t want to get rich. That’s my favorite line; I tell people that all the time.” It’s the advice you’d expect from someone who has seen firsthand what it takes to build a fortune. Cuban explained that paying off credit card debt is like getting an immediate return on your investment. “If you’re paying 15% or 20% interest, paying it off means you just made 15% or 20%,” he said. According to Cuban, there is no reason to give the interest to someone else if you could put that money to better use, such as investing in your future.
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Dave Ramsey was completely on board with Cuban’s vision, but he wanted to make clear how crucial this is if you’re aiming for serious wealth. Ramsey pulled out some data to back this up. “The Forbes 400, the richest people in North America, were surveyed and 75% of them – yes, the rich people, not your broke brother-in-law – say that getting out of debt and staying out of debt is the key to building wealth. wealth,” he said. That statistic wasn’t just a throwaway line; It’s a point Ramsey has been making for years, emphasizing that avoiding debt isn’t just for people trying to make ends meet; strategy that the ultra-rich swear by.
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Since Cuban’s appearance on The Ramsey Show, consumer credit card debt has grown to record levels. Americans will collectively owe $1.14 trillion in credit card debt as of the second quarter of 2024, according to the Federal Reserve Bank of New York’s latest quarterly report on household debt and credit. This represents an increase of $27 billion from the previous quarter.
The average credit card balance per consumer has also increased. TransUnion reports that the average credit card balance increased from $5,947 in the second quarter of 2023 to $6,329 in the second quarter of 2024.
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Ramsey pointed out that eliminating debt puts you in control of your income, which he called “your greatest tool for building wealth.” Ramsey has always been about control and making sure you are in charge of your money, not the other way around. When debt is out of the picture, you can spend your money on things that build wealth.
For Cuban, this isn’t just theoretical. He’s been talking about staying out of debt for years, and his advice hasn’t changed: Focus on the basics, avoid high-interest debt, and take advantage of the guaranteed returns that come with paying off what you owe. “Cut your credit cards,” Cuban advised. “If you’re using them, you’re just not serious about getting rich.”
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The lesson from both Cuban and Ramsey is quite simple: debt is holding you back. If the richest people are saying the same thing, maybe it’s time to take notice. Ramsey also emphasized the importance of surrounding yourself with the right advice. “Listening to people who have been successful is how you get there,” he said. And while that may sound like common sense, it’s a point that doesn’t always sink in until you hear it from a billionaire like Cuban.
For those stuck in the cycle of credit card debt, Cuban and Ramsey’s conversation is a reminder that escape is possible, but it starts with taking that first step: leaving the cards behind.
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This article Dave Ramsey Tells Mark Cuban: 75% of the World’s Richest Say: Do This to Build Wealth – Listen to Them, ‘Not Your Broke Brother-in-Law’ originally appeared on Benzinga.com
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