Dave Ramsey LIVE

[0.42]

Name me the rich person who says the reason they got rich was because of an 800 credit score (aka "the banks love me because they make a lot of money on me score") and using a credit card.

Panjandrum.

 

[CNS]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo.  

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

[Dr Rick Daris]

i just purchased $1,100 dollars worth of plane tickets for ten dollars and booked $1250 worth of hotel rooms for free just from getting a couple of credit cards and using them a few times. when you go to ramsey's concert, can you ask him why this was bad for me?

[Panjandrum]

Name me the rich person who says the reason they got rich was because of an 800 credit score (aka "the banks love me because they make a lot of money on me score") and using a credit card.

It has nothing to do with 'getting rich'.  That's the whole problem with 'debt-o-phobes' or people who abuse credit.  A credit card does not make you rich.  Just because you have $40K in credit at your disposal doesn't mean you have $40K in your pocket.  It does mean you have a little insurance in your pocket in the event of an emergency, or a means of payment that can have some rewards attached to them (cash rewards, gift rewards, travel rewards, etc.).

What using a credit card will do, assuming you pay it off at the end of the month (you know...before they start charging interest on your balance), is help you build a credit score that ensures you will get the best rates on mortgages (which Ramsey says you should have) and cars.

It's a pretty nice method of payment assuming you can pay it off at the end of the month with all of the fraud protection, rewards, and other things that can be built into them.

Not acknowledging that is stupid.  Quit changing the subject.

[Saulbadguy]

i just purchased $1,100 dollars worth of plane tickets for ten dollars and booked $1250 worth of hotel rooms for free just from getting a couple of credit cards and using them a few times. when you go to ramsey's concert, can you ask him why this was bad for me?

He will say that your tax dollars are paying for it. 

[Panjandrum]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo.  

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

In less than a year's time, the only debt to my name will be a mortgage.  Cars will be paid off, student loans will be paid off, etc.  We do not carry balances on our credit cards, so that's not a problem.

Not having a bunch of debt is a good thing.  Having manageable debt, and knowing how to use it, can help you obtain assets (a home, education) that will ultimately be worth equity and net worth down the road.

[Dr Rick Daris]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo.  

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

In less than a year's time, the only debt to my name will be a mortgage.  Cars will be paid off, student loans will be paid off, etc.  We do not carry balances on our credit cards, so that's not a problem.

Not having a bunch of debt is a good thing.  Having manageable debt, and knowing how to use it, can help you obtain assets (a home, education) that will ultimately be worth equity and net worth down the road.

meh. who really cares though. i have car debt, student loan debt (a lot) and a mortgage. i also pay on them pretty easily and still have money left over to do pretty much whatever i want. who cares about debt? not me. not me at all. can someone tell me why i should care about this?

[Panjandrum]

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

I find it highly ironic that Dave Ramsey had a show on Fox Business (which was canceled) saying that the credit industry is out of control (because of bipartisan deregulation of the banking industry), when a lot of those who espouse the truth of Dave Ramsey will most likely tell you that the regulation of the banking industry is socialist and an affront to capitalism.

The most basic fix to this issue, and it was alluded to earlier in the thread, is to have tighter regulations and restrictions on obtaining credit, and when you do, ensuring that lenders engage in transparent and non-predatory lending practices.

You can't tell stupid people not to have credit.  It's extremely difficult in this society to be prosperous in this system without obtaining it.  What you can do is to tell them they can't have that much so as not to destroy their financial well being.

[Saulbadguy]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo. 

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

In less than a year's time, the only debt to my name will be a mortgage.  Cars will be paid off, student loans will be paid off, etc.  We do not carry balances on our credit cards, so that's not a problem.

Not having a bunch of debt is a good thing.  Having manageable debt, and knowing how to use it, can help you obtain assets (a home, education) that will ultimately be worth equity and net worth down the road.

meh. who really cares though. i have car debt, student loan debt (a lot) and a mortgage. i also pay on them pretty easily and still have money left over to do pretty much whatever i want. who cares about debt? not me. not me at all. can someone tell me why i should care about this?

Paraphrasing Dave Ramsey, but he does say things like Jesus wouldn't owe money to people.

[Panjandrum]

Paraphrasing Dave Ramsey, but he does say things like Jesus wouldn't owe money to people.

If this is true, his target audience is actually really stupid and does need to listen to his message.

[Saulbadguy]

Paraphrasing Dave Ramsey, but he does say things like Jesus wouldn't owe money to people.

If this is true, his target audience is actually really stupid and does need to listen to his message.

I used to listen to his radio broadcast sometimes just for laughs.  What you described is pretty accurate - a dumbass hillbilly would call in asking what to do.  Dave Ramsey would ask what debt they had, they would usually say anywhere between $10-$50 grand, and it generally always included a boat, multiple cars, a camper, etc.  He would say things like what I said above, how a true Christian shouldn't owe money to debtors, and credit cards are Satans way of tempting them.  To each his own, but I believe that factors heavily in to his appeal. 

[Panjandrum]

He would say things like what I said above, how a true Christian shouldn't owe money to debtors, and credit cards are Satans way of tempting them. 

 

I have less faith in humanity with each passing day.

[CNS]

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

I find it highly ironic that Dave Ramsey had a show on Fox Business (which was canceled) saying that the credit industry is out of control (because of bipartisan deregulation of the banking industry), when a lot of those who espouse the truth of Dave Ramsey will most likely tell you that the regulation of the banking industry is socialist and an affront to capitalism.

The most basic fix to this issue, and it was alluded to earlier in the thread, is to have tighter regulations and restrictions on obtaining credit, and when you do, ensuring that lenders engage in transparent and non-predatory lending practices.

You can't tell stupid people not to have credit.  It's extremely difficult in this society to be prosperous in this system without obtaining it.  What you can do is to tell them they can't have that much so as not to destroy their financial well being.

Dave is an equal opportunity hater on all things political.  He constantly hates on all gov spending for many reasons.  I think his show may have just fit part of their demo without hitting the other part.

[06wildcat]

Name me the rich person who says the reason they got rich was because of an 800 credit score (aka "the banks love me because they make a lot of money on me score") and using a credit card.

Virtually every self-made rich person? You can't turn a few thousand into millions or millions into billions very easily without using leverage. In fact it's what modern banking is built on, ideally.

[Dirty Sanchez]

Paraphrasing Dave Ramsey, but he does say things like Jesus wouldn't owe money to people.

If this is true, his target audience is actually really stupid and does need to listen to his message.

I used to listen to his radio broadcast sometimes just for laughs.  What you described is pretty accurate - a dumbass hillbilly would call in asking what to do.  Dave Ramsey would ask what debt they had, they would usually say anywhere between $10-$50 grand, and it generally always included a boat, multiple cars, a camper, etc.  He would say things like what I said above, how a true Christian shouldn't owe money to debtors, and credit cards are Satans way of tempting them.  To each his own, but I believe that factors heavily in to his appeal. 

Apparently you didn't listen very close.  Does he use scriptural references?  Yes, sometimes.  Then he gives hard numbers, facts and statistics.

[Dirty Sanchez]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo.  

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

In less than a year's time, the only debt to my name will be a mortgage.  Cars will be paid off, student loans will be paid off, etc.  We do not carry balances on our credit cards, so that's not a problem.

Not having a bunch of debt is a good thing.  Having manageable debt, and knowing how to use it, can help you obtain assets (a home, education) that will ultimately be worth equity and net worth down the road.

meh. who really cares though. i have car debt, student loan debt (a lot) and a mortgage. i also pay on them pretty easily and still have money left over to do pretty much whatever i want. who cares about debt? not me. not me at all. can someone tell me why i should care about this?

If you took an average monthly car payment, and instead of having interest tacked onto it, put it into a mutual fund that averages 12% (average track record over the last 40 years for a decent fund) from age 40 to age 70, you will have over $5.5 million.  Even at age 60, its still prob $3-4 million.

Enjoy the car!

[Saulbadguy]

Paraphrasing Dave Ramsey, but he does say things like Jesus wouldn't owe money to people.

If this is true, his target audience is actually really stupid and does need to listen to his message.

I used to listen to his radio broadcast sometimes just for laughs.  What you described is pretty accurate - a dumbass hillbilly would call in asking what to do.  Dave Ramsey would ask what debt they had, they would usually say anywhere between $10-$50 grand, and it generally always included a boat, multiple cars, a camper, etc.  He would say things like what I said above, how a true Christian shouldn't owe money to debtors, and credit cards are Satans way of tempting them.  To each his own, but I believe that factors heavily in to his appeal.  

Apparently you didn't listen very close.  Does he use scriptural references?  Yes, sometimes.  Then he gives hard numbers, facts and statistics.

Are you denying he said those things?

[Dr Rick Daris]

Tell all you geniuses what.  Why don't one of you call in to his show and ask to debate him about credit cards.  If he concedes that you win, I'll not only fund you that $10 for the ticket, but I'll fund you $100 on top of that.

Here's the extent of the conversation:

Me: I use a credit card and keep a low balance that I pay off at the end of the month, every month.

Ramsey: What happens if a scenario occurs where you need to carry a balance.

Me: Then I budget a payoff as quickly as possible.

Wow.  Tough convo.

I like Dave, but his message is too extreme.  Panj's is the real world example of what should be done, imo.  

I am very close to being out of debt and have used a less extreme approach than what he teaches, but based on similar planning. 

Dave's message all comes down to the same reason the credit industry is out of control: people are stupid.  CC companies recognize it and give cards to anyone.  Dave recognizes it and tells people they just shouldn't have a card because many are too stupid to control them.

In less than a year's time, the only debt to my name will be a mortgage.  Cars will be paid off, student loans will be paid off, etc.  We do not carry balances on our credit cards, so that's not a problem.

Not having a bunch of debt is a good thing.  Having manageable debt, and knowing how to use it, can help you obtain assets (a home, education) that will ultimately be worth equity and net worth down the road.

meh. who really cares though. i have car debt, student loan debt (a lot) and a mortgage. i also pay on them pretty easily and still have money left over to do pretty much whatever i want. who cares about debt? not me. not me at all. can someone tell me why i should care about this?

If you took an average monthly car payment, and instead of having interest tacked onto it, put it into a mutual fund that averages 12% (average track record over the last 40 years for a decent fund) from age 40 to age 70, you will have over $5.5 million.  Even at age 60, its still prob $3-4 million.

Enjoy the car!

well i do enjoy driving and i don't even know that i'll live to 70 and i'm already saving enough for retirement based on numerous retirement calculators so...ok. 

[michigancat]

a mutual fund that averages 12% (average track record over the last 40 years for a decent fund)

[ChiComCat]

Wait, so Jesus is going to call me out on the CC bonuses when I get to heaven?  SD DID NOT MENTION!!!!

[Panjandrum]

If you took an average monthly car payment, and instead of having interest tacked onto it, put it into a mutual fund that averages 12% (average track record over the last 40 years for a decent fund) from age 40 to age 70, you will have over $5.5 million.  Even at age 60, its still prob $3-4 million.

Enjoy the car!

This is such a stupid talking point.

You know what?  If I stopped paying for cable every month, and I put that into a good mutual fund, I'd probably have X million over 30-40 years.

If I stopped eating out for 30-40 years and put that money in a good mutual fund, I'd probably have X million over 30-40 years.

If lived insanely below my means and saved the remainder and invested it for 30-40 years, I'd have X million by the time I'm 70.

Do you know what I wouldn't have by the time I'm 70 if I'm focused on hyper-saving?  A life.

Buying cars is not hard.  You can usually negotiate a good rate or go at a time they're running a good deal.  People with great credit ( ) can get a 1.9% rate on a car, which wouldn't amount to anything.  I'd be better off getting the cash back deal.

Here's the secret to buying a car.  Take some test drives and find the car you want.  Go between 12/25 and 1/1.  Go to edmunds.com and submit a request for multiple quotes at one time.  Get in contact with three or four dealers.  Make them bid against each other.  You'll end up paying invoice or less for the car.  Make sure that you went online and got qualified for the lowest rate you can find on lending tree or bankrate.com.  Take that preapproval to the dealership.  Negotiate with their finance people to get a lower rate because Honda American Finance (for instance) would rather take your 1.7% than 0%.

This.  Is.  Not.  Hard.  People like Dave Ramsey use stupid talking points and references to Jesus to scare people into not using debt financing, which, if used properly, can have minimal impact on your financial life if you do it right.

I mean, for God's sakes, I had my lender pay me to drop my mortgage rate %1.625.  They sent me a check for $200 after it was over.  This isn't rocket science.  The extent of my education is basically reading Money magazine.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

[EllToPay]

If you took an average monthly car payment, and instead of having interest tacked onto it, put it into a mutual fund that averages 12% (average track record over the last 40 years for a decent fund) from age 40 to age 70, you will have over $5.5 million.  Even at age 60, its still prob $3-4 million.

Enjoy the car!

This is such a stupid talking point.

You know what?  If I stopped paying for cable every month, and I put that into a good mutual fund, I'd probably have X million over 30-40 years.

If I stopped eating out for 30-40 years and put that money in a good mutual fund, I'd probably have X million over 30-40 years.

If lived insanely below my means and saved the remainder and invested it for 30-40 years, I'd have X million by the time I'm 70.

Do you know what I wouldn't have by the time I'm 70 if I'm focused on hyper-saving?  A life.

This.

But I don't blame DS for his viewpoint, most Mexicans have the same POV.

[Dirty Sanchez]

This thread is a microcosm of politics/society.  There is a group that does whatever it wants, whenever it wants, because it "feels good."  If someone disagrees with that path, they are mocked, called stupid, retards, or idiots.  Their way is the only way.  Innuendo, not facts, are the method of disseminating their point.  The other side says, "Hey, here's another way.  A way that has proven to work.  Now here's some facts."  No name-calling, just the facts, ma'am.

Its not a surprise that many of you are statists.  Many of you are apparently very well adept at chasing advertising propaganda.  What's in your wallet?

[0.42]

This thread is a microcosm of politics/society.  There is a group that does whatever it wants, whenever it wants, because it "feels good."  If someone disagrees with that path, they are mocked, called stupid, retards, or idiots.  Their way is the only way.  Innuendo, not facts, are the method of disseminating their point.  The other side says, "Hey, here's another way.  A way that has proven to work.  Now here's some facts."  No name-calling, just the facts, ma'am.

Its not a surprise that many of you are statists.  Many of you are apparently very well adept at chasing advertising propaganda.  What's in your wallet?