George Kamel - The Debt Trap No One's Talking About

Episode Date: December 17, 2025

💵 Start your free budget today. Download the EveryDollar app!   I love Christmas just as much as the next guy, but you don’t need to put that 24-karat golden Labubu on buy now, pay later (be so for real, Christina). In this episode, I’m laying out why buy now, pay later is one of the biggest scams you should avoid at all costs.     Next Steps: • 📈 Are you on track with the Baby Steps? Get a free personalized plan.   Connect With Our Sponsors: • Get up to 40% off Cozy Earth with code GEORGE. • Get 20% off when you join DeleteMe. • Go to FAIRWINDS Credit Union for an exclusive account bundle!   Explore More From Ramsey Network: 🎙️ The Ramsey Show 🍸 Smart Money Happy Hour 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 💡 The Rachel Cruze Show 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership   Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

America has a toxic money trade that costs people almost $20 billion last year, and no one wants to talk about it. Except me. In today's video, I'll break down exactly what's going on, why it's a problem, and how you can avoid falling for the trap. Okay, here's the skinny. In 2024, Americans spent $994.1 billion on the holidays, which, for comparison, is enough to build over 400 replicas of the sphere in Vegas.

Now, before you click away and start watching Dude Perfect, because you think this video is just going to be me shaking my fist and telling you not to spend money on Christmas, don't sell your horses just yet. Because that's not what I'm here to do. I love Christmas as much as the next guy, putting up the tree, shopping for presents, and that one song about someone kissing Santa Claus.

Who was that? Oh, that's right, your mom. I walked right into that. What I'm against is overdoing it, which is kind of America's favorite thing to do, is to overdo. as I have just overdone. How do I know that?

Because of the $994 billion that Americans spent on the holidays last year, a whopping $18 billion was funded with payment plans. And this is not the same as Gam Gam Gam's old layaway plan. Okay, this is debt, potentially with ridiculous interest rates and fees. But that was just a one-time thing, right? Surely it's all going to get better this Christmas, unfortunately no. Because around one in four Christmas shoppers are expecting to use buy-now-pay-pay-later schemes

to help fund the festivities in 2025. Now, I am well aware that I've talked about Buy Now Pay Later a lot on my channel this year, but I honestly have to keep talking about it because it somehow keeps getting worse. And in case you don't believe me, let's recap. We started the year with Klarna, one of the biggest players in the Buy Now Pay Later industry, forming a partnership with DoorDash that allows you to finance your next Chalupa Supreme. In May, Klarna admitted to trimming its workforce by 40% since 2022. They also announced a $136 million loss and revenue. due to customers missing payments.

And at the start of October, the Salvation Army of all people released a statement complaining that it's way too easy to buy alcohol using these payment plans. And now these companies have extended their reach so far that Christmas is beginning to get infected. That's not the Christmas spirit?

But here's the thing. When it comes to Christmas, buy now, pay later really isn't the issue. It's the symptom of a much deeper underlying problem. Because while companies like Klarna, firm, and afterpay are the ones allowing people to spend more on Christmas than they can afford to, it's still the people themselves who are deciding to actually do it.

And that points to four money problems we're dealing with in this country. The first of which is that we're way too in love with stuff. Look, most of us don't have a spending problem. We have a stuff problem. We have built our whole lives around getting more of it, and Christmas just exposes that. We've been told that a good Christmas means the tree is buried in boxes and our kids have the latest, I don't know, squish-Malo, Labu-Groch-Jibbitts collab. I hate this time long.

And for lots of people who can't afford that reality, they use it to justify throwing stuff on a payment plan. But let's be real. No one's life was ever changed by a new air friar or a $1,000 Lego Death Star that will end up under the couch by February. Buying more stuff just gives you more junk to clean, maintain, and move when you realize it didn't make you happy in the first place. It was a very temporary joy, and now you have to deal with it. And I just heard this the other day, and I love it. We don't buy products, we hire them out. So think about it this way.

Next time you go to buy something, think, What job am I hiring this thing to do? And if it's not going to do that job well and you can't afford that person, then don't hire them. And maybe you have some stuff around the house that you need to fire, because it's no longer serving you

in the way that you intended. Capish. Moving on to problem number two. Comparison. Comparison is the Thief of Joy. You may have heard that quote before. And it's the reason half of America goes broke every December.

One minute, you're scrolling past your friend's cozy Christmas decor that looks like it was shot for a pottery barn ad, The next, your $40 Walmart tree feels like it's personally offending baby Jesus. And he is offended, but for not the reasons you think. So what do you do? Well, you swipe the credit card or you use a firm just as once to keep up. Next thing you know, you've got matching pajamas, a Pinterest perfect tablescape, and $800 of regret.

There's good news, though, because I promise you, no one is thinking about your Christmas decor as much as you are. Next problem, emotional spending. Now, here's the sneaky part about emotional spending. It doesn't always come from feeling bad. Sometimes it's the opposite, right? The holidays hit, Mariah Carey de-frosts, and suddenly everyone's full of nostalgia, peppermint, and Snoopy energy.

You're in a great mood, and that's exactly when you start making bad money moves. Because when we feel good, our guard goes down. We say yes to everything, the fancy dinner, the extra gift, the matching footy pajamas for the dog. Why not? You're sick.

You're sick. Don't put your... Those paws were made for walking. Let them roam free, baby. People convince themselves it's all part of making memories when really we're just making payments. Oh, that's good. I feel like Adele could weave that into a song. I wish you were still making music.

Where'd you go, Adele? You got all the money and then you went, I'm good. Bye now. Gonna go be a mama. Lots of working moms out there that figured it out, Adele. We need you. America's going through a lot right now. Come back. Britain needs you right now. you right now. People convince themselves it's all part of making memories when really we're just

making payments. And it points to an important truth. Emotions make a terrible financial advisor. So don't let your emotions guide you. Let your budget and logic guide you. All right, problem number four, obligation giving. You ever struggle to find a gift for someone because you barely knew them? Well, you either have a mail order bride or you've fallen victim to obligation giving, AKA the fastest way to turn what should be a joyful season into a financial hangover filled with resentment. We convince ourselves that saying no makes us scrooge, so we spend out of guilt instead of a generous spirit. And the result, we're broke, burnt out, and still worried that great-uncle Gus didn't like his teakwood candle and matching hand sanitizer from Bath and Body Works, trademark. Trade market. I don't need them coming after me again.

I have a family. Here's the thing. Real generosity isn't about checking names off a list. It's about giving with purpose. And you don't need to buy 20 gifts for everyone in your family to prove that you care. It's not about having a full tree. It's about being thoughtful and going quality over quantity. And if you want quality, I've got the one gift that will do the trick from Cozy Earth, one of the sponsors of today's video. Their Men's Everywhere Pant is the rare combo of structure and stretch, which I have coined

Structure TM. It's as if your jeans and your sweats had a well-adjusted child, okay? And their brush bamboo joggers are my go-to the second I get home because they're soft, and build to last, just like me, baby. Bottom line, if you want to give comfort that actually lasts, this is it. Or if you just want to treat yourself. That's a-okay too, as long as it's in the budget. And best of all, you can get up to 20% off right now

by going to cozyearth.com slash George and use the promo code George at checkout. You can also use the link in the description below. All right, I'm about to give you some practical tips for fighting back against these problems and giving awesome Christmas gifts without breaking the bank. But first, let me give you a practical tip for fighting back against online scams.

And that's signing up for Delete Me, another sponsor of today's video. AI is getting a lot more powerful, and a lot of CD fellas are using it to spin up super realistic scam emails and texts. And Luckily, DeleteMe will help clean up your digital footprint by removing your personal data from data broker sites before they can sell it to those CD fellas. And DeleteMe stays busy working on your behalf, and they'll prove it by sending you a report every few months, letting you know exactly what they've done. So get started today with a 20% off discount at JoinDeletMe.com slash George, or use the link in the description. Okay, let's reset real quick. Because despite all of the problems we've gone over, you don't have to roll into January, broke, burned out, and wondering why afterpay got more love than your family.

So here's how to take back control of your Christmas without turning into the Grinch. Number one, set boundaries. Boundaries are not rude, they're responsible. You don't need to attend every single party, join every secret Santa, or buy for everyone who's ever smiled at you in the break room. You get to decide what your Christmas budget and schedule look like. Not guilt, not pressure, not the front display at Target. And once you make that decision, stick to it.

Because if you don't tell your money and your time where to go, Christmas and your overreaching mother-in-law will. I love you, Jane. That wasn't a personal attack on you. And this is where I lean on every dollar. It's a budgeting app that helps keep my wife and me honest about what we can actually spend so we don't get caught up in the holiday chaos.

You can use the app to make your first budget for free in just a few minutes, and I'll leave a link in the description if you're interested. All right, number two, Have the conversations early. Communicate with your family and your friends now around expectations for gifts, budgets, and plans. Do not wait until December 23rd to do it because it's simply too late. Now, these conversations can feel awkward, but they can save everyone's stress later. So say something like, I'm really trying not to overspend this year.

Can we all agree to do something a little simpler? You'd be surprised at how many people are relieved to hear that. Everyone's thinking it. They're just waiting for someone to say it. So let that someone be you. It's like leaving a wedding early. Everybody's down, but nobody wants to be the first to do it, to do the old Irish goodbye, as they say. But I'm brave.

I leave weddings before they even start. I make sure the bride and grooms see me real quick, and then I'm out of there. Number three, stop caring what other people think. Listen, people pleasing is expensive. Half the reason we overspend is because we're afraid someone will think we're cheap, lazy, or don't love them enough. The truth is nobody's thinking about you that much. All right, they're too busy watching the all-new six-part Taylor Swift docu series on Disney Plus. and who could blame them.

And as for the people who do judge how much you spend at Christmas, well, they're probably broke too, so I wouldn't care too much about their opinion. Be confident enough to live out your values, not someone else's expectations. It is a superpower when you stop caring what other people think. So harness it and use it wisely. Number four, get creative with your gifts.

You don't have to spend a ton of money to show love. In fact, the best gifts don't require a lot of cash. They just require some thought. Make something. Write a letter. Frame an old photo. make them their favorite bake good from scratch. Anything other than one of those

free hug coupon books. Okay, the real gift would be if you didn't touch me, Uncle Randy, okay? The hugs may be free. The trauma, that's going to cost you, bud. That's going to cost you. Okay, that was weird. And finally, number five, try an alternative gift exchange. Instead of buying 20 random gifts,

try picking a few people to give to or even one person and do it really well. You can do a secret santa name draw, white elephant, or something you come up with on your own. In my family, we play a little game called Trash Panda. Everybody brings one fast food item, we throw it in the dumpster, and then we wait for the raccoons to come out, and if your item gets chosen first, you win.

And what's the prize you ask? You get to eat the other items that have not been eaten by the raccoons yet. That's a win, baby. And if you think that's gross. Listen, was White Castle ever really food? I think it only gets better the more it sits in the dump. Either way, scaling back doesn't make Christmas smaller. It makes it smarter.

You'll spend less, stress less, and actually remember what you got people this year. So, bottom line, Christmas doesn't have to be a financial circus, and it definitely doesn't have to involve buy now, pay later plans. So set limits, have honest conversations, give with intention, and stop trying to prove your love with your wallet. Because the real magic of Christmas isn't found in a shopping cart, okay? It's found in contentment, connection, and knowing that your January self won't hate your December decisions.

Oh, and remember what I said earlier about Klarna's streamlining its workforce by firing almost half of their team. Yeah, you will not believe some of the other stuff these companies have admitted. I broke down some of the craziest stuff in this video, which you can watch by clicking here or use the link in the description. That's it for today. Be sure to subscribe, hit like on this video, and share it with a friend who needs to swap white elephant with trash panda this year. It might just save their Christmas. Thanks for watching. We'll see you next time.