Personal finance expert Dave Ramsey says cutting all monthly debt and credit card payments lets you save more and gives you the freedom to leave a job you dislike.

Discussing how debt and credit card payments trap people on "The Ramsey Show," he urged his audience to picture a life without loans, credit card bills, or a mortgage. Ramsey said that when your salary is only spent on groceries and utility bills, you can live on your own terms and invest your money to build long-term wealth. 

Don't Miss:

• The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.85/Share
• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $10, starting today.

"What if you had no car payment, no credit card payments, no student loan payment, no medical bills outstanding," he said. "If you had no payments, would you work at the job you work at if you didn’t have to pay payments? Would you take a different job? Next time the boss comes in being a jerk, you could just start walking out, ‘Where are you going?' I don’t have any payments."

‘Slaves' of Lenders

Ramsey said many Americans work like "slaves" just to keep up with credit card bills, auto loans, and other debts owed to major lenders. He believes that when you owe money, your life is controlled by the lender and your choices become limited.

"I owe, I owe, so off to work I go, says the bumper-sticker," Ramsey said. "You spend your whole life giving money to people who have 50-storey buildings in the skyline, guess who paid for those? You. The borrower is slave to the lender."

Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro

‘Voluntary Slavery'

Ramsey said people often make more money and move forward in life once they get out of debt, because freedom from payments gives them the option to change jobs or switch careers instead of feeling stuck in the same role. 

Ramsey said many people think they can't get ahead in life or have nice things without credit because that idea has been repeated for years. He thinks you could build a fortune by investing the average monthly car payment in the U.S. into a growth stock mutual fund for 40 years.

"You know why you feel trapped when you got a bunch of payments? Because you’re trapped, that’s why you feel trapped," Ramsey said. "The borrower is slave to the lender. The only difference was this was voluntary slavery, you signed up for it. We were told that this is how you live."

Read Next: 

• $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
• 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform Before the Raise Ends 1/19

Image: Shutterstock