What are your thoughts on Dave Ramsey?

[DU556]

I don't follow Dave but i think he has a lot of good thingsto say. I have set up aaa budget line he suggested so that i can see exactly where every dollar is spent. I also use Mint app for my budget and tie in my cards so that i can see my budget and finances from one place.

[Grafton88]

One of the problems I am seeing is that without a credit score your auto insurance will be sky high.  Also finding an apartment may be impossible.

There are a number of things that he misses because he doesn't live the life of a normal person in America.  It is one thing to talk about setting up a budget.  It is another thing to give advice that would hurt the average person.

[Anonymous]

I have listened, read, and tried - for years. I finally realized that his advice IS rigid. It's also not well suited to very low income (which was my case before I graduated and when I was a single mom student.) I am not against: student loans, reasonable car debt, responsible use of credit cards.

I even disagree with his "baby steps." I am nearly 50 - if I had to wait until I was out of debt to start saving in my 403(b), I would not have a retirement.

I also find him shaming at times, and abrasive. And arrogant. I don't mind the wealth, and I believe his "story" and I can respect that.

Edited to add: I don't find his spiel about being able to rent cars with a debit card helpful or accurate. Having a "hold" on my money is still a budget challenge. And he talks about "manual underwriting" for mortgages, but I don't believe that happens as easily or readily as he represents.

That said, I do think his "debt snowball" is a good tool.

[Anonymous]

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@Anonymous wrote:

I also find him shaming at times, and abrasive. And arrogant.

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Me too.  There's A Rush Limbaugh quality about him.  I remember watching a really sweet guy call in to his show, somebody who clearly thought he was getting an audience with the Pope, a huge DR fan.  The guy tried to explain how he liked DR's advice so much but that he felt like maybe it might be ok to have one cash back card that you used only to pay absolutely necessary bills with.  Ramsey just tore the guy apart. 

It's too bad because (aside from DR being a monster to this guy who idolized him) the caller was right.  There's a place for DR's emphasis on the risks of spending money you shouldn't with plastic, but this caller had figured out correctly how to have the best of both worlds: a couple cards that he uses for cell phone, internet, Netflix, etc.  That way he builds a credit history and never is buying luxury items.  Too bad that DR was giving the advice and not the caller.

PS.  Shaming, abrasive, and arrogant -- a public persona like that gives us Christians a bad name!  Not a good missionary, that's for sure.

[CH-7-Mission-Accomplished]

He sort of reminds me of the Dr. Laura of finance.

I have to say, Suze Orman is kind of a female version of D.R.   

[vanillabean]

Let's say there is a law in place that would give a bonus of $1,000 at the end of the year to everyone with credit card debt that used the highest interest first approach rather than the smallest balance snowball method. How would you pay down your credit card debt?

Let's also say that there's another law in place for a $1,000 snowball bonus. The two laws are in effect within respective sections of society. The bonus may be increased depending on how well the section is doing. Which section of society would you prefer living in?

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

He sort of reminds me of the Dr. Laura of finance.

I have to say, Suze Orman is kind of a female version of D.R.   

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I sort of agree. But she approaches it from the opposite, yet still extreme, angle. She encourages the use of credit cards to finance daily living in some situations, but they have to be LOW INTEREST cards. I just don't understand her rationale. If someone needs a credit card to finance daily living expenses, they likely won't qualify for a low interest card.

My brother lives in Nashville and has a friend who works for Dave Ramsey. He said they truly believe in the advice that they spout about never using credit cards, etc. He also said that Dave's company treats their employees extremely well.

[Anonymous]

I have several books by both Dave Ramsey and Suze Orman. I find that both of them spout what I consider to be common sense information. Suze is a bit more specific with hers. She gives detailed advice for certain situations. Dave Ramsey advice I find to be helpful if you can't figure out the common sense part on your own. Maybe some people out there have just had zero experience in managing money and actually need the informaiton in the way he provides it. I do think there is value in trying to stay debt free. I actually used some of Dave's plan my by only having a 1k emergency fund and putting all other money towards my one debt (student loan). I made good progress by doing this, but after a few months I had to change my strategy, because my boyfriend lost his job. I thought it would be more prudent to put my extra money in savings in case we got into a financial crunch and resumed paying only minumum on my student loan. Much to Dave's dismay, I use rewards cards for everything possible. I always PIF and have never paid a penny in interest. I guess I am conflicted about my opinion on DR. He has decent advice for those that need it. He is a bit extremeist, and I have heard his podcast where he was very condescending to people about having credit cards.

[Cotton_Britches]

Dave Ramsey is very firm in what he believes because he had to learn those lessons the hard way. He lost everthing financially, filed bankruptcy and had to start over from scratch. At times, he said he didn't know how he was going to feed his family. He genuinely wants to prevent others from suffering the way that he did.

I love his advice, except it is much easier to rent a car with a credit card. I think everyone should have at least one. Not to use on a daily basis, but to build credit, have in a pinch, case of emergency, etc. Better to be safe than sorry.

[Grafton88]

We have all had to learn lessons the hard way.  It is called life.

What works for one person in regaining their financial footing doesn't necessarily work for another.  This is why, when others ask questions, we ask for specifics.  If someone gives bad advise several others will jump in and correct them.  Everyone on these forums are constantly learning new strategies.  The financial market is always in a state of flux.

I want to learn the best stratigies for my situation.  I also want the person(s) giving the advise to have a positive frame of mind.  I don't want the attitude to be 'my way or the highway'.  I have learned through life that people with that attitude generally are unsure of their knowledge.