'Ticket to Foreclosure' Dave Ramsey Warns Of This Mortgage Trap He Calls 'Dumber Than A Rock On The Surface'

Personal finance expert Dave Ramsey warns against adjustable-rate mortgages (ARMs), calling them a "ticket to foreclosure" and criticizing organizations like Experian for promoting them to keep people in debt. Ramsey explains that ARMs involve a "bait-and-switch" mechanism and can quickly become unaffordable if interest rates rise, leading to default and foreclosure. He believes that banks prioritize their own interests over the welfare of borrowers.