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01-23-2013 12:07 PM
I agree with other some of the other posters that his advice might be useful for people who have gotten in over their heads and simply can't exercise control with a credit card. But, some folks get in trouble and learn from it. For those who can manage to use credit cards wisely, then following Dave Ramsey's anti-credit philosophy can actually cause someone to waste money. I'm talking specifically about those who are able to manage rewards cards. If managed properly, and balances are not carried on them, they can rake in some money that you would not otherwise get from paying in cash. My DH and I recently took a vacation, and the airline tickets were completely paid for by a combination of rewards points and cash back. If we had used cash and/or debit cards for all of our purchases in the months leading up, we would have had to pay for those tickets out of pocket.
This kind of reminds me of my father-in-law, who is vehemently anti-credit. I smile every time we make a purchase at Lowe's, because my DH's card gives us 5% back at the register, knowing that if my FIL goes there to buy something, he's paying in cash and is spending more for the same items than we are. Credit, used wisely, is a valuable tool.
+ 1- very well stated!
01-23-2013 06:21 PM
I actually listen to him almost daily. I think its a positive message.. I do not agree with him on the whole no credit card .. cash flow everything .. But I can't help but think alot of what he says makes perfect sense..
I am paying off debt. Was it out of control.. I guess depends on who you ask , but it was deeper than i wanted. About 33k (store and credit cards) all interest free of course. and for me listening to other people calling in just keeps reminding me that if they can do it.. So can I. Fast forward a year later .. After the 2k payment i made this month. We have exactly 10k left on a credit card and about 7k left on store cards(Both store cards are all no interest even payment deals) . Still all at zero percent.
Do i think i could do it without ever hearing him.. Yes.. but his message does help keep me focused with the thoughts of getting rid of these card payments , 900 a month in car payments and 1200 a month mortgage. .. What i could do with an extra almost 3k a month
01-23-2013 06:33 PM
I like DR and was a huge follower for a couple of years. I agree some people really need his advice and I was on of them. I learned how to control my money after spending every penny I made. I thankfully never really go into a lot of debt and hadnt ever financed anything at the time but I went on a whole financial makeover. Fast forward a few years I started taking bits of his philosophy and molded it into a system I could use that included saving and using credit wisely. I thank him for that. I will however never agree on his investing advice. I am anti stock market and anti mutual fund. I do things he advocates against but thats my choice and I have been pretty successful at it so far. Suze Orman is just terrible at inveestment advice. I once heard her say something that completely appalled me.
01-23-2013 07:20 PM - edited 01-23-2013 07:21 PM
I just read this article: http://www.daveramsey.com/article/the-truth-about-credit-card-debt/
The guy's an idiot. He way over-generalizes and he encourages use of a debit card (with far fewer protections) for airplane flights. Oh, and the bit about not feeling the money leaving when you swipe a card - for me it's the opposite. I have cash, I spend it, I don't have to think about the pain of seeing my bank account balance go down.
I find it funny how the article referenced here uses an example of a 5% rewards credit card, and comparing it to rebates and depreciation on the purchase of a new car. How exactly is that an accurate comparison? This is wrong in so many ways. The article is written and almost manipulated to be able to take into consideration the massive depreciation of driving a new car off the lot to seemingly entirely devalue the 5% rewards.
People who write in this manner tend to lose all credibility in my view.
01-23-2013 08:23 PM
DR has some very good advise...mainly for those digging themselves out of a big debt hole. I was one of those people. I will be the first to admit that i did not follow his plan exactly. obviously if im on this board, i have and use credit cards. but by getting out of the big pile of debt by snowballing (and i did it reverse from his plan, i went high interest first) i did learn how to use my credit wisely. no one plan is one size fits all, same with the suze thing. to me she likes the sound of her own voice too much.. but ymmv.
01-23-2013 09:52 PM
I feel like most of what he says is bullcrap. Basically his message is for people to pay off their debt and not live their lives, while he has them buy his books and other crap so he can live the good life. complete bullcrap, hes in it for the money.
i know people that are hardcore dave ramsay followers, they live no lives. they never eat out, they never treat theirselves. i dont believe in living like that.
also i work retail in electronics. and i truly believe in the protection plans we sale, covers accidents and what not. you wouldnt believe how any people say that dave ramsey told them to not buy any kinds of protection plans. I almost feel like asking them if dave ramsey is going to buy them a new computer/tablet if it breaks.
01-23-2013 10:27 PM - edited 01-23-2013 10:39 PM
DR lives UP (literally) the street from me, and whatever he's done - he's done it right...
I bet he uses rewards cards and just puts on this no credit card facade for all the people he is targeting. No rational, affluent person, with a stable budget, would miss out on the rewards and benefits of credit cards.
He has made money by expressing what he conveys, not likely he actually believe's what he is preaching.