Dave Ramsey Advises Caller to Pay Credit Card Before Family Loans

Mike, calling from Calgary, Alberta, told The Ramsey Show he had recently doubled his income from about CA$40,000 to CA$80,000 and wanted advice on debt repayment order. He reported a CA$2,000 credit card balance on a no-interest plan and said he also owed roughly CA$6,000 to one sibling and CA$24,000 to another for earlier student-related costs.

Ramsey told Mike to pay the credit card first because Mike had already listed his debts smallest to largest. Ramsey said, "There is no try, just do it," and instructed Mike to begin regular payments rather than waiting for lump sums. Co-host John Delony noted that one sibling had become vocal about repayment and called the delay in sending funds an avoidance tactic.

Mike estimated he could allocate about CA$2,500 per month if he reduced discretionary spending. Ramsey said that amount would clear the credit card within one month and then allow monthly transfers to the siblings. Delony said the situation had nearly fractured family relationships over a problem that could be resolved in roughly 90 days.