When it comes to family finances, podcaster Dave Ramsey takes a “tough love” approach. He often uses the Bible to support his monetary principles, such as Proverbs 13:24, which states that he who loves their children is careful to discipline them.
In his popular podcast, The Dave Ramsey Show, Ramsey offers down-to-earth insights on how people can best manage their money—which all-too-often means helping them get out of debt.
Ramsey doesn’t “spare the rod” in doling out his advice, which is one reason why his show is the #1 business show on Spotify, boasting an audience of 18 million weekly listeners:
- In one episode, he told a man from Georgia it’s appropriate to cut your child out of your will if they are living in a way you don’t agree with—so long as you communicate the change to them before you die, so that they’re not in for a nasty surprise.
- He told another caller—whose parents were about to move in with her because they neglected to save for their retirement yet were still making a six-figure income—that it wasn’t her job to take care of them.
Yet Ramsey, to paraphrase Matthew 7:3-5, doesn’t see the speck in his neighbor’s eye to avoid the splinter in his own. He frequently shares his personal stories to illustrate how money can affect one’s life and relationships, because he, too, knows what it’s like to experience the shame and defeat of crushing debt.
Ramsey built a real estate business that was worth over $4 million by his mid-20s, only to lose it all and file for bankruptcy in 1988 when his banks called in his loans.
In his darkest hour, Ramsey turned to God, discovering 2,500 Biblical verses about money, advice he distilled into his first book, Financial Peace (1992), a New York Times bestseller, as well as Ramsey Solutions, his financial coaching business.
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What are Dave Ramsey’s top 5 ways to get out of debt?
Across his books, radio show, and courses, Ramsey consistently emphasizes that liberation from debt is not just about numbers—it’s about changing habits. His advice is a mix of discipline and behavior change; he even brought on a mental health expert, Dr. Jon Delony, as a co-host on his show in 2020.
Here are Ramsey’s top 5 ways to erase your debts:
1. Use the ‘debt snowball method’
This might seem contrary for someone who’s totally against debt, but Ramsey believes the best way to achieve financial freedom is to actually start by tackling your smallest bills first.
Ramsey describes two types of debt reduction. The “Debt Avalanche Method” is a strategy that involves paying off your debts with the highest interest rates. “But with this strategy,” he writes on his website, “you might have to pay off your largest balances first. And that can feel super intimidating—especially when you’ve still got other debts to pay off!”
Instead, Ramsey advocates for the “debt snowball method,” which involves paying off your debts in order from smallest to largest balance (while still making the minimum payments on the larger expenses).
“By paying off your smallest debt first (instead of focusing on the interest rate), you get a quick win!” Ramsey writes. “Plus, you immediately free up money to tackle the rest of your debt. The debt snowball creates unstoppable momentum to knock out the rest of your debts—like a snowball rolling down a hill!”
The reason this method works best, Ramsey tells Forbes, is due to psychology. “Personal finance is 80% behavior and 20% head knowledge,” he said.
He does admit that, mathematically speaking, the fastest way to eliminate debts may be through the debt avalanche method. However, “you need a realistic strategy you will stick with,” he adds. And in the end, he believes the debt snowball method will give you the confidence and motivation to succeed.
Millions of his listeners agree.
2. Create a budget
Ramsey encourages people to simply make a plan for their money each and every month.
“By giving every dollar a job,” he writes, “you can confidently cover all the essentials (bills, food, gas), cut out unnecessary extras, and add more money to your debt snowball.”
The way to do that is through his “zero-based budget” plan, which involves listing your monthly income, then listing your expenses, including your food, utilities, and either your debt payments or savings. When you subtract those expenses from your income, you should end up at zero, which ensures that you aren’t living above your means.
Ramsey even created an app, EveryDollar, which helps users find “margin,” or surplus income—to the tune of $3,015 on average.
3. Live frugally
There’s no beating around the bush on this one—Ramsey believes it’s necessary to cut back on unnecessary spending in order to free up more money to put towards your debt.
“You have to draw a line in the sand and decide that you’re done with debt,” he writes. “No more swiping that credit card or taking out personal loans for things you can’t pay cash for. Those habits have gotten you where you are now, and they won’t help you get out.”
Some ways he suggests doing this are cutting up your credit cards, cooking at home more often, selling things online, driving a cheap used car so you don’t have a car payment, and taking on a side hustle.
4. Increase your income
As mentioned, one strategy Ramsey believes can help quickly erase your debt is to simply find ways to boost your income. Whether that’s by working overtime, selling things you don’t need online, or taking on a side job, making more money is one of the best ways to accelerate your debt repayment.
More on personal finance:
- Dave Ramsey’s 3 most controversial pieces of financial advice
- Clark Howard’s 5 best financial tips for smarter spending, saving & investing
- 5 money mistakes to avoid according to Scott Galloway
“Think of your income as a shovel,” Ramsey writes. “The bigger your shovel, the faster you can dig yourself out of debt.”
He even includes a list of potential hustles on his website, ranging from freelance writing to pet sitting to renting out a room in your home to becoming a delivery driver.
5. Keep giving
Ramsey believes there’s another seemingly counterintuitive move that pays off in dividends—spiritually speaking, that is. And that’s to make donations, or tithe, at church.
Ramsey stands behind the long-held adage of allocating 10% of your income towards church giving, as well as other acts of “radical, mind-blowing generosity.”
While need-based organizations will always have a need for your donations, Ramsey goes one step further and says you’ll be rewarded by God if you are charitable. “God actually promises to bless us if we faithfully tithe,” he writes on his website.
Plus, he adds, “If we can’t live off 90% of our income, then we probably can’t live off 100% either.”
He advises people to put charitable giving at the top of their budget next time they look at their finances. That way, they’ll make sure to give, even before covering their basic necessities like food and utilities. It’s his way of overcoming selfishness, something he believes is plaguing our society.
Dave Ramsey’s net worth in 2026
According to TheStreet, Dave Ramsey’s estimated net worth in 2026 is $200 million, which reflects the success of his media empire.
Born David Lawrence Ramsey III on September 3, 1960, in Maryville, Tennessee, Ramsey developed an entrepreneurial spirit early on, starting his own lawn care business at age 12 and flipping houses when he was in college.
After Ramsey declared bankruptcy, he began offering financial counseling in church. He founded Ramsey Solutions in 1992.
In addition to his weekly radio program, he has authored several bestselling books, including Financial Peace (1992) and The Total Money Makeover (2003).