Dave Ramsey question

[KatSoDak]

The other day I caught about 20 minutes of Dave Ramsey on Sirius radio while I was driving. 

During that short time he made two claims that I knew were incorrect. This surprised me. I listen to him now and then while spinning the dial when there is a commercial on one of the sirius stations I've tuned in to.

Anyway, the blatantly wrong statement I recall from a couple weeks ago was when he told a caller that the majority of credit card applications are approved without any credit check whatsoever. I couldn't believe he thought that was true.

He made a few other incorrect claims during that segment which I can't recall right now. 

I know he is against credit but I didn't realize he was uneducated on the subject.

[Horseshoez]

@KatSoDak, the problem with people like Ramsey is they know if they actually do some research they'll find what the believe and preach is blatenly false.  They'd much rather go on believing their lies than to be confronted with the truth.

[Brian_Earl_Spilner]

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@Horseshoez wrote:

@KatSoDak, the problem with people like Ramsey is they know if they actually do some research they'll find what the believe and preach is blatenly false.  They'd much rather go on believing their lies than to be confronted with the truth.

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Or simply, it counters what they're trying to sell so they spin the info to fit their narrative regardless of truth and/or accuracy. There's also oversimplification to dumb down the topic to reach as many people as possible.

[Anonymous]

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@KatSoDak wrote:

Anyway, the blatantly wrong statement I recall from a couple weeks ago was when he told a caller that the majority of credit card applications are approved without any credit check whatsoever.

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Yes, that's what we do at LTL Bank!   "Hey, this guy wants a credit card.   Maybe he can pay, maybe he can't.  50-50.   May as well give him one and see what happens.   It's only our money"

Obviously a viable business model!

(OK, to be fair, not so different from the CDO and mortgages for everyone in the period leading to the meltdown of 2007-2009)

[Save-n-Invest]

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@Anonymous wrote:

He lost EVERYTHING once because he was in over his head with debt. His advice keeps folks from making the same mistakes he made. The best way to do that for many people is to avoid credit cards, and the incurrence of credit card debt, at all costs.

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Ramsey was overleveraged on real estate. The notes were called. He was unable to pay them.  

Ramsey made a fortune telling people not to use credit. In his case bankruptcy was ok "so they wouldn't take the baby's crib". For the rest of us it is pay up and never use credit again.

Typical cult leader.

[CreditCrusader]

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@Brian_Earl_Spilner wrote:

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@Horseshoez wrote:

@KatSoDak, the problem with people like Ramsey is they know if they actually do some research they'll find what the believe and preach is blatenly false.  They'd much rather go on believing their lies than to be confronted with the truth.

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Or simply, it counters what they're trying to sell so they spin the info to fit their narrative regardless of truth and/or accuracy. There's also oversimplification to dumb down the topic to reach as many people as possible.

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THIS

Jillian Michaels does the exact same thing where diets are concerned. She is particularly hostile to keto diets, often spouting ignorant nonsense that is directly contradicted by medical science or high school biology.

"You don't need keto. You need my miracle diet/workout/plan/book!"

Ramsey is in the same Jillian Michaels/Ann Coulter mold. To be fair, the choir he preaches to sings like canaries, but his advice would cost many people money and a higher quality of life...in exchange for which they receive a life of frugality.

[Taurus22]

Lol.....as I was reading, I was about to comment similarly to @Brian_Earl_Spilner 's post.  The facts simply aren't parallel with the merchandise he panders. That doesn't sell. Like I mentioned earlier, it's a great spin....it works for his "business model" if you want to call it that, but when people are desperate for something in their life to change, I can see how easy it would be to latch onto the "rich guy who must know what he's talking about". He's rich, he has a nice website, he has a calm, trustworthy demeanor......he wouldn't steer anyone wrong, right?

[Anonymous]

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@Taurus22 wrote:

Lol.....as I was reading, I was about to comment similarly to @Brian_Earl_Spilner 's post.  The facts simply aren't parallel with the merchandise he panders. That doesn't sell. Like I mentioned earlier, it's a great spin....it works for his "business model" if you want to call it that, but when people are desperate for something in their life to change, I can see how easy it would be to latch onto the "rich guy who must know what he's talking about". He's rich, he has a nice website, he has a calm, trustworthy demeanor......he wouldn't steer anyone wrong, right?

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Re rich, I have seen some followers using this as a reason to dismiss negative comments from commoners, because,  as you say, he must know what he is talking about.   The fact that MUCH richer people push no fee index funds for example,  rather than hid front loaded funds, is apparently completely different 

[brk1971]

And all this goes without saying when it comes to everything else that a credit score impacts... even if you're paying cash = auto insurance being the easiest to (universally) apply example... 

[RSX]

my main issue is he touts not having any Credit Cards

so - when i moved from Canada to the US in 2010 - didn't have any credit rating, since it doesnt transfer over and i got a $300 secured CC from Wells

my work involved traveling to California every month

guess what it was like trying to order a plane ticket - then landing and trying to get a rental car (they would lock $500 right away back then) then arriving at the hotel where they would try to lock the full room rate in advance - all this before you bought any food during your trip

doesn't happen - and having Cash can't solve all those problems

so - yes everyone should use credit responsibly - but to say people shouldnt have credit cards, means there are certain things you just CANNOT do - like travel