Summary of "How Is Someone Even Allowed To Get 35 Credit Cards?"

Podcast: The Ramsey Show Highlights
Host/Author: Ramsey Network
Release Date: January 2, 2025

Introduction

In the episode titled "How Is Someone Even Allowed To Get 35 Credit Cards?", the Ramsey Network delves into the alarming ease with which individuals can accumulate excessive credit card debt. The hosts, Dave Ramsey and his co-host Ken Coleman, discuss the systemic issues within the credit industry that facilitate such financial irresponsibility.

The Ease of Obtaining Multiple Credit Cards

Core Question: Corey asks, “Dave, you recently took a call where the person had 35 credit cards. How do the banks even allow someone to get that many cards?” (00:02)

Corey's Innocence:
Dave Ramsey responds with a mix of surprise and criticism towards Corey’s naivety regarding the banking system’s leniency.

• “Corey, that's sweet that you are naive enough to think that the banks even think that's sweet that you would think common sense would enter into this transaction.” (00:22)

Banks’ Lack of Oversight:
The hosts emphasize that banks prioritize profit over the borrower’s ability to repay.

• “They will approve you for the loan. Way beyond 18 year old, $200,000 in loans for, for college. Sure, sure. Right, yeah, just, they just, just like hand it to you.” (00:55)

The Marketing of Debt

Over-Marketed to Consumers:
Dave highlights that Americans are subjected to unprecedented levels of marketing, particularly for debt products.

• “...the most aggressively marketed product in the most aggressively marketed time in history is debt.” (01:04)

Debt as a Commodity:
Debt products are omnipresent, ranging from traditional loans to unconventional ones like pet loans.

• “Dog loans, cat loans, there are loans for everything. I was trying to buy a T shirt for God's sakes and they offered me payments on it with Klarna the other day.” (02:38)

False Sense of Ease:
The term “easy payments” is misleading, as repayments are often burdensome.

• “And yet when you make Them, they're always hard. They're not easy.” (03:04)

Credit Cards: The Pinnacle of Aggressive Debt Marketing

Dominance of Credit Card Advertising:
Credit card companies invest more in marketing than major industries like beer or automotive.

• “It's more than beer. It's more than Chevy pickup trucks going through mud puddles.” (04:32)

Personification of Credit Cards:
Advertisements personify credit cards to make them more appealing, often using celebrities.

• “What's in your wallet? Says the failed actor. The actor who can't get a part.” (04:32)

Absurdity in Credit Issuance:
Stories of credit cards being issued to non-human entities highlight the systemic flaws.

• “He applied for a credit card in the name of Buck Naked. They issued the card to Buck.” (05:12)
• “He sent me from New Orleans a credit card, an actual card. It was issued to Frou Frou, who was his poodle who had died.” (05:23)

Personal Identity Linked to Credit Cards:
The color and type of a credit card are unjustifiably linked to one’s personal identity and success.

• “Good color of my plastic dictates the quality of my personal identity.” (06:20)

The Flawed Credit System

Excessive Credit Limits:
Individuals are granted credit limits far beyond their means, fostering unsustainable debt levels.

• “We've had people with 200 credit cards. There are people that are. That believe that credit cards are excellent.” (06:28)

Influence of Credit Card Companies:
Credit card giants like MasterCard and Visa wield significant influence, often at the expense of small businesses and consumers.

• “They have 80 of the market share and they're in front of Congress because of antitrust.” (07:17)
• “They can't. They won't lower fees for small businesses. Like they give deals to big corporations like Walmart.” (07:29)

Profit-Driven Models:
The primary goal of credit card companies is profit, leading to aggressive marketing and exploitative practices.

• “Everything is about making money. It's all they're in it for.” (07:39)
• “They know how to do it really well. And they market it to you and bring you into this cycle.” (07:50)

Conclusion: The Real Cost of Easy Credit

The episode culminates with a stark reminder of the dehumanizing aspects of the credit card industry.

• “If you're issued a new credit card, you're no better than Frou Frou or Buck.” (08:21)
• “You're no better than either.” (08:28)

The hosts urge listeners to critically evaluate the ease of obtaining credit and the long-term financial traps it sets, emphasizing the importance of financial literacy and responsible credit use.

Notable Quotes

• Dave Ramsey (00:22): “Corey, that's sweet that you are naive enough to think that the banks even think that's sweet that you would think common sense would enter into this transaction.”
• Dave Ramsey (01:04): “...the most aggressively marketed product in the most aggressively marketed time in history is debt.”
• Dave Ramsey (04:32): “What's in your wallet? Says the failed actor. The actor who can't get a part.”
• Ken Coleman (07:39): “Everything is about making money. It's all they're in it for.”

This episode serves as a critical examination of how the current credit system and aggressive marketing strategies contribute to widespread debt accumulation, urging listeners to adopt more mindful financial practices.