Anyone here do the Dave Ramsey thing?

[jd4320t]

I'm a follower but I do my own thing. In the past few years I've been listening and watching I've definitely learned a lot and changed some things. Any time Dave Ramsey is brought up the critics come out. Of course there are many ways to do things and not everyone needs help.

The truth is most people live beyond their means and paycheck to paycheck. They can't help it because their parents were the same way or they didn't have anyone to guide them in the right direction. Listening to Dave helps me be honest with myself.

Having an emergency fund, not having credit cards and not borrowing anymore money are the key points to me.

Don't be the current normal. Be the weirdo and you'll be set for life in 15-20 years.

 

[K_W]

I listen, usually agree with him, and I understand his system. I would use it if we were in debt... but I consider ourselves "debt free" yet he would not agree as we have low fixed rate 15yr mortgage and a small car loan.

We have no other debt besides house and car. I see the interest cost as trivial compared to a good house in a good neighborhood and a quality reliable car; they're a necessity rather than a burden. I consider paying out every reserve dollar just to clear debt only to have to borrow in an emergency as not only silly, but risky.

We also try and maintain a good credit score by using credit cards and carrying a small balance for a few months then paying it off. It costs us a couple of bucks a year but maintains our 750-780 credit scores if we have to borrow for some reason.

 

[JettaKnight]

We also try and maintain a good credit score by using credit cards and carrying a small balance for a few months then paying it off. It costs us a couple of bucks a year but maintains our 750-780 credit scores if we have to borrow for some reason.

What?


I have never carried a balance, I have only a mortgage, I haven't had any other debt in the last decade, and my credit rating is always 840-850.

 

[lovemachine]

I'm a follower but I do my own thing. In the past few years I've been listening and watching I've definitely learned a lot and changed some things. Any time Dave Ramsey is brought up the critics come out. Of course there are many ways to do things and not everyone needs help.

The truth is most people live beyond their means and paycheck to paycheck. They can't help it because their parents were the same way or they didn't have anyone to guide them in the right direction. Listening to Dave helps me be honest with myself.

Having an emergency fund, not having credit cards and not borrowing anymore money are the key points to me.

Don't be the current normal. Be the weirdo and you'll be set for life in 15-20 years.

I'm already a weirdo. Might as well be debt free and have the money to go with it

 

[historian]

I think the one piece of advice where I would disagree (and this is if you guys don't have a CC addiction) is to buy gas (and only gas) with a credit card and pay it off every month. That way you have a top notch credit score and no "real" debt. We use our CC for purchases, but pay it every month and have low 800s (last time we refinanced).

 

[lovemachine]

I don't have any credit cards. Last time I had one, we dug ourselves into a big hole. So I'd rather not have that temptation again

 

[dans4420]

i have been listening to him for a couple years, i dont do the program only debt we have is student loans and mortgage. we just downloaded the free app he has and have been using it to do a budget for the last month so far its kind of nice to really see where the money goes. doing a budget on paper would deff give you the same experience i just love the ease of the app.

For all the information he gives i truly believe if you take whatever advice that helps your specific situation it will help. for some people it helps to go all in for others like me ive picked up on some of the smaller principles that should have been common sense but something clicks when you hear it sometime.

Good luck.

 

[CHCRandy]

Only in America can you run yourself in debt, file bankruptcy and then make millions off of people wanting financial "advice". That's a little like your preacher being a paroled pedophile........

 

[Ericpwp]

I don't have any credit cards. Last time I had one, we dug ourselves into a big hole. So I'd rather not have that temptation again

Whatever it takes.

 

[K_W]

What?


I have never carried a balance, I have only a mortgage, I haven't had any other debt in the last decade, and my credit rating is always 840-850.

It's what I was taught to do by my parents. Pay off your card every month but one or two times a year leave a small balance. Always worked for them and it worked for me as my first even loan was for a car and I had a 785 score. Maybe there is a better way.

 

[gunsisgood]

Only in America can you run yourself in debt, file bankruptcy and then make millions off of people wanting financial "advice". That's a little like your preacher being a paroled pedophile........

^This right here^
Do as Dave says not as he did.

 

[BE Mike]

It's what I was taught to do by my parents. Pay off your card every month but one or two times a year leave a small balance. Always worked for them and it worked for me as my first even loan was for a car and I had a 785 score. Maybe there is a better way.

Actually our score was higher, last time I checked and we always pay off our credit cards each month. Buy something with an interest free loan and make your monthly payments and it won't cost so much as a credit card balance. Your score will climb.

 

[PGRChaplain]

I started 50 years ago, Dave's advice from my Dad. My Wife joined in 34 years ago. In 34 years we only paid Credit Card interest once, IDMV started taking Credit Cards years ago, but didn't tell Customers they treated it as a Cash Advance. Good Luck on your new budget!

 

[hoosierdoc]

Only in America can you run yourself in debt, file bankruptcy and then make millions off of people wanting financial "advice". That's a little like your preacher being a paroled pedophile........

In no way are the two comparable.

^This right here^
Do as Dave says not as he did.

How sure are you guys on that?

he stated he went back and paid every penny he owed from that

and from his website:

That said, Dave doesn’t tell his listeners to never file for bankruptcy. Each situation, just like each potential filer, is unique. Dave and his team will explore every possible scenario to keep from suggesting bankruptcy, but sometimes it’s the only reasonable option.If your family decides to file bankruptcy, we will be here to help you during the process and give you the tools to restore your hope after your bankruptcy is discharged.
Many bankruptcy cases can be avoided with proper help. We have counselors available to meet with people and work with them to find a better option.

 

[JettaKnight]

It's what I was taught to do by my parents. Pay off your card every month but one or two times a year leave a small balance. Always worked for them and it worked for me as my first even loan was for a car and I had a 785 score. Maybe there is a better way.

I don't know exactly how it's calculated, I merely know I own situation.


These sources seem to indicate that you method made be unnecessary, and costly.
Does Carrying a Balance Help or Hurt Your Credit Score? - ReadyForZero Blog
Will Carrying a Balance Boost Your Credit Score?
Ask an Expert: Will Carrying a Balance Improve My Credit Score? ? Money Talks News
https://bettermoneyhabits.bankofamerica.com/en/credit/5-facts-about-credit-cards
https://www.nerdwallet.com/blog/finance/credit-score-does-carrying-a-balance-help/
Myth Busters: Should You Carry a Balance on a Credit Card?
https://www.creditkarma.com/article/carrying-a-balance-good-or-bad-92415

Simply using it regularly (while not closing in on the limit) is good enough.

I actually thought that a LOWER limit was good because it would reduce fraud potential, however, a HIGHER credit limit can so that you're able to handle a large line of credit responsibly and judiciously.


Of course, for those living a debt free lifestyle with a huge pile of cash, this is all moot.

 

[wagyu52]

Listen to him daily and Agree with pretty much all his plan in our personal finances. However, for business I think it's unrealistic to not barrow money to make money.

One huge dilemma in Daves plan is that if everyone proscribed to his plan, much of what his plan relies on to work would be gone. Debit card companies, mutual funds, 401's, banks, mortgage companies all rely on earning interest in one form or another.

A wise man once told me if people are earning interest, people are paying interest. Better to be the former rather than the latter.
Dave Ramsey definitely earns interest.

 

[hog slayer]

I don't know the ins and outs of his "program," but I think delaying saving for retirement is completely idiotic.

Me thinks you haven't a clue what you're talking about.

 

[CHCRandy]

In no way are the two comparable.



How sure are you guys on that?

he stated he went back and paid every penny he owed from that

and from his website:

How sure are you that he really went back and paid every penny?

 

[Joe G]

What?


I have never carried a balance, I have only a mortgage, I haven't had any other debt in the last decade, and my credit rating is always 840-850.

I don't know exactly how it's calculated, I merely know I own situation.


These sources seem to indicate that you method made be unnecessary, and costly.
Does Carrying a Balance Help or Hurt Your Credit Score? - ReadyForZero Blog
Will Carrying a Balance Boost Your Credit Score?
Ask an Expert: Will Carrying a Balance Improve My Credit Score? ? Money Talks News
https://bettermoneyhabits.bankofamerica.com/en/credit/5-facts-about-credit-cards
https://www.nerdwallet.com/blog/finance/credit-score-does-carrying-a-balance-help/
Myth Busters: Should You Carry a Balance on a Credit Card?
https://www.creditkarma.com/article/carrying-a-balance-good-or-bad-92415

Simply using it regularly (while not closing in on the limit) is good enough.

I actually thought that a LOWER limit was good because it would reduce fraud potential, however, a HIGHER credit limit can so that you're able to handle a large line of credit responsibly and judiciously.


Of course, for those living a debt free lifestyle with a huge pile of cash, this is all moot.

Same. Credit card for about everything I can, paid off in full each month. Never had a balance or paid interest. That has nothing to do with how you're scored. Any rating 800+ is golden anyway.

 

[hoosierdoc]

How sure are you that he really went back and paid every penny?

Pretty confident. Been listening for 10 years and his character does not seem to be one that would blatantly lie about something.

But sure, who knows.

just curious. Why so much animosity towards him? He provides 15 hours of free financial advice every week, along with a ton of free online resources. He has an incredible group of people who are debt free using his system. If you pay $99 or whatver for the live in person class it's a lifetime membership and you can go through it anywhere you want as many times as you want. That's about $11/hr for 8 classes if they are an hour long. For financial mentoring. People's cellphone bills are more than that, every single month.

He has free budget apps. Free online stuff.

i don't see what there is to be against. You can disagree with his teaching, but the vitriol I just don't get