GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you could read more about oureditorial guidelinesand our products and servicesreview methodology.
They have written bestselling books that educate readers onfinancial concepts.
While they respect each other, their views on debt are radically different.
Ramsey believes that all debt is bad.
While this approach helps with credit card debt, it can scare people away from making good investments.
Dossey explained that leverage can provide benefits, but it is extremely risky.
The Dave Ramsey versus Robert Kiyosaki debate is a classic argument around leverage, Dossey said.
Having caution isnt just about avoiding too much debt.
Dossey also mentioned the importance of keeping your mental health in mind as you accumulate debt responsibly.
Understand the Pros and Cons of Both Approaches
Dossey doesnt favor Ramsey or Kiyosaki.
Some people should pay off their debt, especially if its a credit card balance.
However, neglecting the benefits of leverage also has its downsides, as Dossey explained.
Im not a devout follower but a blend of both, he said.
That debt keeps people from being able to reach their goals.
It adds stress to their lives.
Ramsey regularly encourages people to cut up their credit cards and focus on paying off debt.
Credit cards can be useful for building credit, which can result in lower rates.
However, Ramsey believes its better to make purchases with cash and debit cards.
For the average person, Dave Ramseys advice is best, she explained.
Debt Can Build Wealth
Some people can reach their financial goals sooner if they get into debt.
Musson shared how getting into debt for an asset like real estate can be beneficial.
If your debt helps you grow your wealth, its better to accumulate debt, she said.
Its especially beneficial when your debt can be paid for by others while your wealth grows.
Kiyosakis advice is risky.
When you use debt to build wealth, things could change in a hurry.
If your portfolio is well-diversified, you may be okay, she added.
However, the average American could potentially use debt to fuel one source of wealth building.
If that strategy fails, theyll end up even further in debt with no wealth building realized.
More From GOBankingRates
Share This Article:
