Americans added $21B to credit cards — now 20%+ interest is crushing budgets. Time to use Dave Ramsey’s escape hatch?

Nearly one in four Americans grapple with debt every day, according to the latest State of Personal Finance in America report by Ramsey Solutions. An additional 15% worry about their debt on a weekly basis, while eight out of ten individuals experience some level of debt anxiety. Jeff Bezos has invested in a platform that allows individuals to invest in rental properties with as little as $100.

The tax benefits of Trump's recent bill are set to expire after 2028, and many people are failing to take advantage of this window of opportunity. Credit card balances in the U.S. increased by $21 billion to around $1.26 trillion during the second quarter of 2026, as reported by the Federal Reserve Bank of New York. A survey conducted by Ramsey Solutions revealed a significant gap between those without debt and those with consumer debt, with 80% of debt-free respondents feeling financially independent, compared to 63% of those who carry credit card debt.

Financial guru Dave Ramsey advises a step-by-step approach to tackling debt, rather than attempting to solve everything simultaneously. His Baby Steps include saving a $1,000 starter emergency fund before addressing debt. This fund, even a small one, can provide a much-needed buffer against unexpected expenses and prevent the need to resort to credit cards once again.

Ramsey suggests keeping this emergency fund in a separate, high-yield account, such as a Wealthfront Cash Account, which currently offers a base APY of 3.30%, with new clients receiving an additional 0.75% for the first three months, totaling a variable APY of 4.05%. This is significantly higher than the national deposit savings rate, as reported by the FDIC in their June 2026 report.