Dave Ramsey - Any Thoughts?

[dealsaver]

Re: Dave Ramsey - Any Thoughts?

You said "rarely" - in what type of situation would it make sense? DS, I'm wondering what rare situation you have in mind - as I thought you'd say it never makes sense (you're pretty astute with the numbers obviously).

One particular situation comes to mind where it could make sense to pay off a low interest rate credit card balance before a higher interest rate balance. If your credit score is just below a level that would qualify you for a better rate on a new mortgage or a lower car insurance rate(many insurers now base your insurance rates on your credit score in part), paying off a lower interest rate credit card to get your utilization on that card below 50% may make sense. That by itself could give your credit score enough of a boost to qualify for savings on other financial products that would more than offset the cost of not paying the higher interest rate card first. This would be an exception to the general rule of paying off higher interest rate credit card balances before lower interest rate balances.

[jmjj215]

Re: Dave Ramsey - Any Thoughts?

If your credit score is just below a level that would qualify you for a better rate on a new mortgage or a lower car insurance rate(many insurers now base your insurance rates on your credit score in part), paying off a lower interest rate credit card to get your utilization on that card below 50% may make sense. That by itself could give your credit score enough of a boost to qualify for savings on other financial products that would more than offset the cost of not paying the higher interest rate card first.

You are truly a numbers man then - this is the type of situation I suspected you'd say!

[katwoman]

Re: Dave Ramsey - Any Thoughts?

One particular situation comes to mind where it could make sense to pay off a low interest rate credit card balance before a higher interest rate balance. If your credit score is just below a level that would qualify you for a better rate on a new mortgage or a lower car insurance rate(many insurers now base your insurance rates on your credit score in part), paying off a lower interest rate credit card to get your utilization on that card below 50% may make sense. That by itself could give your credit score enough of a boost to qualify for savings on other financial products that would more than offset the cost of not paying the higher interest rate card first. This would be an exception to the general rule of paying off higher interest rate credit card balances before lower interest rate balances.

EXACTLY!!!

It is foolish to ignore FICO scores in ANY discussion of finances. They have more impact on your life than most people know!

It also matters WHEN (as in timing) you pay off debt, transfer debt, apply for any type of credit, make a major purchase, etc.

[puck36]

Re: Dave Ramsey - Any Thoughts?

I have read Dave Ramsey book and listen to his show almost every day. I have been doing the Debt Snowball for the last 18 months and have paid off over $10,500 while only making $19,000 - $23,000 a year. Its what Dave says, "Winning at money is 80 percent behavior and 20 percent head knowledge. Most of us know what to do but we just don't do it.", that made me change how I spend my money. I will be 100% debt fee come July 1 of this year and its all because of Dave Ramsey.

[nixuzer]

Re: Dave Ramsey - Any Thoughts?

I have read Dave Ramsey book and listen to his show almost every day. I have been doing the Debt Snowball for the last 18 months and have paid off over $10,500 while only making $19,000 - $23,000 a year. Its what Dave says, "Winning at money is 80 percent behavior and 20 percent head knowledge. Most of us know what to do but we just don't do it.", that made me change how I spend my money. I will be 100% debt fee come July 1 of this year and its all because of Dave Ramsey.

That is great and I can only speak for myself but I'm really excited for you...there is nothing better than being debt free (except for my house but I'm getting there).

One correction I'd make and I know it is a small one but important is it isn't all because of Dave Ramsey, he was just the launching point for what you did...you are the one who is doing it so keep it up!

[niki_the_tiger]

Re: Dave Ramsey - Any Thoughts?

I have read Dave Ramsey book and listen to his show almost every day. I have been doing the Debt Snowball for the last 18 months and have paid off over $10,500 while only making $19,000 - $23,000 a year. Its what Dave says, "Winning at money is 80 percent behavior and 20 percent head knowledge. Most of us know what to do but we just don't do it.", that made me change how I spend my money. I will be 100% debt fee come July 1 of this year and its all because of Dave Ramsey.

Woohoo congrats on the progress! I bet you can't wait until July 1st!! We've been doing the debt snowball now for about a few months now and we have paid off about half our debt. Not sure when we'll be done, as things keep coming up. Though there is also the tax return that will be a big help.

Keep up the good work! Afterwards too... I think that's where we especially gotta learn... cuz I know we will be so sick of being tight that we risk splurging!

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

Puck, that is wonderful. I use to listen to Dave Ramsey every day, but I cannot get him on the radio anymore. Anyone know if he is on any Atlanta stations? I use to get him out of Knoxville, but the station won't come in , any more.

[nixuzer]

Re: Dave Ramsey - Any Thoughts?

Keep up the good work! Afterwards too... I think that's where we especially gotta learn... cuz I know we will be so sick of being tight that we risk splurging!

Having been in the same situation I'd recommend that you put a tight budget in place after your debt free (except for the house) and set a goal.

For example after you're out of debt set a goal that if you live within all areas of your budget for three months you take a certain amount of money and just blow it on what you want and you could budget it in the 3 months of tight living. Then you can splurge and do it debt free. Depending on what you have to save I'd say maybe 10% of your take home for three months...make sure to include everyone in the family (if you have one) and don't set any expectations about the spending of the fun money (speaking to myself here more than you probably), maybe a vacation, etc. I found 3 months to be long enough were we got to really work through bad behaviors but short enough where we could see the end in sight. Eventually however you'll reach the point where saving is more fun than spending and that is when you know you've really changed your habits.

[nixuzer]

Re: Dave Ramsey - Any Thoughts?

Puck, that is wonderful. I use to listen to Dave Ramsey every day, but I cannot get him on the radio anymore. Anyone know if he is on any Atlanta stations? I use to get him out of Knoxville, but the station won't come in , any more.

If you have access to high speed internet you can listen to him online between 2-5PM EST @ http://www.daveramsey.com/radio/home...strMode=listen or you can also subscribe to his stuff (can't recall which one since I don't subscribe) and download it whenever you want (commercial free). You'll notice on the URL above it also has a find a station button which might help. Since I work from home the internet is the option I use but I'm not sure if it is for you.

Dave and I disagree on some stuff and I was working 'the approach' to getting debt free before coming across him but he really helped me focus. Now I just tune in from time-to-time (especially on Fridays where people call in to say their debt free) because I enjoy hearing other people who are getting debt free...motivates me more to work on getting my house paid off.

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

Thanks Nix, I am new to computers. You mean I can listen over my computer? I know what you mean about being motivated to pay off your house. I have been there, done that. Mine has been paid off for years. Now I am motivated to pay off some land I bought. Some how I have managed to come up with at least $1000 extra each month to pay on the principal and the balance has gone from $65,000 to $35,000 each month.
I have a canister with a picture of the property. Any dollar I can spare goes in there. I pay myself a dollar when i walk a mile on my treadmill, or when I get over a certain score in the yazee game I play. Somehow I managed to scrape up that money.

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

I meant to say , the balance has gone to $35,000 in 13 months.

[EHadden]

Re: Dave Ramsey - Any Thoughts?

Puck, that is wonderful. I use to listen to Dave Ramsey every day, but I cannot get him on the radio anymore. Anyone know if he is on any Atlanta stations? I use to get him out of Knoxville, but the station won't come in , any more.

Ima Saver, being new to computers, you may not be up on the iPod, but I download the free 1-hour podcast of his show everyday and listen to it on my way to work in the morning the next day.

I am a Ramsey fan, just for the fact that he is a no-nonsense and in-your-face kind of guy. His math principles do not necessarily provide the best benefit, but I agree with the majority of you who claim that dealing with DEBT and SPENDING is tied to behavior.

While most of us here are intelligent enough to know that you will save more money to pay off the high interest debts first. "Killing" the small debts (regardless of the interest rate), as Dave preaches, does give someone with low esteem and a seemingly unsurmountable pile of debt some encouragement.

He is a great starting point for those who need to get a swift kick in the pants.

I just like to listen to all of the stories that people call in to his show with.

[jmjj215]

Re: Dave Ramsey - Any Thoughts?

He does mention time and again that he recognizes that math is not the reason he pushes the smallest debt first. He's an extremely skilled real estate investor and savvy businessman. He actually has quite a gift with numbers. He could calculate, compute, compare and contrast financials better than 99% of his critics who spout off the 'bad math' thing. The thing that's impressive about his approach is the fact that he sees the psychology as so overriding, even when he is truly a numbers' man.

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

Ehadden, I don't even know what an Ipod is. I don't know anything about computers, but I do like Dave Ramsey. I e mailed his show and they sent me a list of radio stations to try and get his show. Most of the shows are 100 miles away, but I will try.

[Keen]

Re: Dave Ramsey - Any Thoughts?

Ima, If you are on this site with a high speed connection you can listen the the Dave Ramsey archive shows (the last 14 or so shows) on your PC for free. I am doing it right now. Just go to his Daveramsey.com site click on "The Dave Ramsey Show" link on the left. Then click on "listen on-line/on-line streaming" button then click the "Listen to the Archives" link....then pick a show and listen. If you can post 700+ times on this site then you can for sure listen online while you do it! I am doing it right now, Good luck