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Regular Contributor
Posts: 105
Registered: ‎11-15-2011
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Thoughts on Dave Ramsey??

Just wondering because he seems to think that anyone interested in credit cards are idiots. hmmm...

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Established Contributor
Posts: 1,040
Registered: ‎02-27-2012
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Re: Thoughts on Dave Ramsey??


babymixer wrote:

Just wondering because he seems to think that anyone interested in credit cards are idiots. hmmm...


I don't know him(until now) and haven't heard his programs or messages. But I feel like his show is probably targeted toward people that have already fallen off into the deep end.

 

The problem with US is that many people can't live without credit: ie they don't have enough in the bank to live day to day. They rely on credit to make purchases now and make payments later when/if they can afford it. I'm guilty of a mild case of this but I can def live on cash basis(debit cards)

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Valued Contributor
Posts: 2,857
Registered: ‎06-08-2012
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Re: Thoughts on Dave Ramsey??

He has his good pts but can't take it to extremes. He markets to a particular audience, those that got in serious credit card debt due to their spending. His advice is good for his targeted audience.


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Posts: 25,813
Registered: ‎10-23-2007
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Re: Thoughts on Dave Ramsey??


babymixer wrote:

Just wondering because he seems to think that anyone interested in credit cards are idiots. hmmm...


I will leave the politics and religion out of it but he has "some good points" and some .... i guess that could be good or bad.

 

it's Suze Orman vs. Dave Ramsey

 

You have to find the middle of what is going to work for you... I will say I think it would be VERY hard to NEVER use a credit card in your life (or credit for auto and home actually more so then credit cards)

His thing is if you have the money it doesn't matter what you are doing, you don't need credit and while that works for him (I assume his nice relationship with that bank he use to always talk about helps... couple things from my point of view that wouldn't work without some sever talks with a more local bank that knows what you are trying to do.

 

Sure these days you can rent a car with a debit card, if they can take a $2k hold on your credit card, and they can do the same on your checking then who cares.  The issue I would see is the daily limits and that's where his bank relationship comes into play, someone can correct me if I'm wrong.  I always make the banks increase my daily spend and withdraw to $3k when I open accounts, I don't think I have EVER came close to using that but I walk the line of if it's available to someone else, it's going to be given to me too when it comes to stuff like that rather I use it or not.

now what happens if you are someone that runs $25k a month through an Amex (Doubt Suze Orman is trying to pay her Time Share on her GulfStreem Jet on a Chase Debit Card!

My partner who has been with Wells for over 12 Years tried to get $500 cash 2 weeks ago when goiung to buy a dog, he was only able to get $200 and I had to pull the other $300 from my account... He was like blah and waited over 3 days to call and then only move it to $600... I was SO IRRITATED over it!!! (at him for saying he doesn't need it higher) clearly you did!!

 

anyway, last but not least is put your debt in order smallest to largest, I tend to like it this way too vs. suze usually says highest interest rate.

now if you have 3 cards and they are all close to same balance then interest rate is what I would focus on but for me in past when I looked at it, I had probably 10 accounts that had balances less than $500 and a few big ones with over $15k.... based on interest it had me sending over $500+ a month to the over $15k balances and sending $10 to the small balances when if I did small to large I would wipe out the 10 small in under a year vs. some of them being around for 3 years on the interest way!

 

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Frequent Contributor
Posts: 355
Registered: ‎09-23-2011
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Re: Thoughts on Dave Ramsey??

I just have to respond..I was a follower of DR for years.  HOWEVER, he do go to the far deep on credit and credit cards in general.  Now, for some, they NEED his tough talk.  Simple as that.  But for others who recover from their personal "financial cliffs",  I encourage them to seek credit cards to enhance their financial portfolio.  Its like watching a movie, like the Matrix, you watched it once, it kicks ass.  But after watching it 5 to 10 times, you get a different, and better understanding of the movie, or any movies that you watch more than twice.  The same principle applies to credit cards as well.

 

 

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Regular Contributor
Posts: 150
Registered: ‎11-05-2011
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Re: Thoughts on Dave Ramsey??

Dave Ramsey has great points with his baby steps and I agree with all of them.  However, a couple of thoughts.  He doesn't advocate using any debt.  His debt snowball plan will actually cost you more money in the end (paying lowest balance vs interest) but for some people the pschological effect is the only way they will pay off their debt.  Lastly, I wouldn't use his advice for investing.  He's a financial counselor not investor.

Established Contributor
Posts: 661
Registered: ‎12-21-2012
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Re: Thoughts on Dave Ramsey??

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.

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Established Contributor
Posts: 652
Registered: ‎12-12-2012
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Re: Thoughts on Dave Ramsey??

I pay him not attention and disagree with most of what he says.

 

Suze Orman is an attention hog and in it for the money. 

 

I'm not a fan of either.  I don't like Dave's message and I don't like Suze's character.  Her prepaid debit card was a travesty.

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Valued Member
Posts: 87
Registered: ‎11-28-2012
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IRe: Thoughts on Dave Ramsey??

I caught one of his shows on Credit Cards the other day, he had some bad advice on closing accounts that would hurt a persons AAoA.  Generally speaking his advice wasn't terrible but not nearly as good as you get here at myFico.

 

Some people have no guidlines at all when it comes to finances so I would have to say his advice is better than no advice at all.

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Moderator Emeritus
Posts: 4,875
Registered: ‎11-02-2010
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Re: Thoughts on Dave Ramsey??

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. Smiley Happy


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