What type of debt does Dave Ramsey advocate for eliminating first?

Dave Ramsey advocates for eliminating unsecured debt, such as credit card debt, first because this type of debt typically carries the highest interest rates and does not have collateral backing it. Unsecured debts often accumulate quickly and can lead to a cycle of debt that is difficult to escape. By focusing on eliminating this type of debt first, individuals can decrease their financial burden more effectively, freeing up resources for savings and essential expenses.

In contrast, secured debts, like mortgages and car loans, are backed by assets. While these debts should also be addressed, they tend to have lower interest rates and more manageable terms. By prioritizing unsecured debt, individuals can combat high-interest charges more efficiently, allowing them to build momentum in their debt repayment journey. Student loans, while significant in amount, often have deferment options and lower interest rates compared to credit cards, making them a lower priority in Ramsey's strategy.