Funny thing is, if this really worked and everyone did it, the country would be in economic ruin.

 

And you think the mass foreclosures happening is a good thing for the economy?

Listen to his show 1 to 4 96.5 and call in with the question. TEll us when though, cause I would love to hear his answer.

 

Just because Dave would disagree with cshs, doesn't necessary mean that Dave is right. Many so called financial experts will tell you that Dave's method is wrong in some areas.

 

Do Dave's methods work, sure. Especially since they are simply to follow and he does appeal to many in that he approaches finace from a Christian prespective.

 

My brohter in law (who has a PHD in Economics) adamantly disagrees with parts of Dave's method. Dave's idea work if you subscribe to the believe that all debt is evil, however, many financial advisers will tell you that some types of debt are healthy.

 

I like listening to Dave, and I believe that he makes a lot of sense in some regards but, even thought I have debt I am not going to stop contributing to my 401k simply to pay off a credit card that has a 11% rate.

 

Even with the poor market this year, I am still at about an 8% ROI, which once you factor in that I am saving about 28% in taxes and adding a 50% match from my employeer, you will never convenice me that my money is better used servicing a 11% debt.

Funny thing is, if this really worked and everyone did it, the country would be in economic ruin.

 

How so?

 

The only people that would be in economic ruin would be the bankers, loan officers, and creditors. The economy would actually be stronger than ever.

Problem is people really think this way and that's what the CC bank on, and that's why people never get out of debt.

 

For the record, I have had zero credit card debt since 1986. I don't say that in to be bragging. I say that to point out that IMO its the #1 financial drain on individuals. THAT's why I argue that it should be attacked first.

 

I guess I'll have to logon to his website and check out his scenarios.

How so?

 

The only people that would be in economic ruin would be the bankers, loan officers, and creditors. The economy would actually be stronger than ever.

 

And every company or service that sells there good to people that can't afford them. The economy is built on debt.

Just because Dave would disagree with cshs, doesn't necessary mean that Dave is right. Many so called financial experts will tell you that Dave's method is wrong in some areas.

 

Do Dave's methods work, sure. Especially since they are simply to follow and he does appeal to many in that he approaches finace from a Christian prespective.

 

My brohter in law (who has a PHD in Economics) adamantly disagrees with parts of Dave's method. Dave's idea work if you subscribe to the believe that all debt is evil, however, many financial advisers will tell you that some types of debt are healthy.

 

I like listening to Dave, and I believe that he makes a lot of sense in some regards but, even thought I have debt I am not going to stop contributing to my 401k simply to pay off a credit card that has a 11% rate.

 

Even with the poor market this year, I am still at about an 8% ROI, which once you factor in that I am saving about 28% in taxes and adding a 50% match from my employeer, you will never convenice me that my money is better used servicing a 11% debt.

I agree!

 

My house and car's are not killing me at all and are only helping my credit score which will only help me get a better rate next time I buy a house which will give me more cash flow than otherwise.

 

His beliefs on term life insurace I whole heartedly disagree with also.

And every company or service that sells there good to people that can't afford them. The economy is built on debt.

 

What is the Scripture about having something built on sinking sand?:sssh:

And every company or service that sells there good to people that can't afford them. The economy is built on debt.

 

But you said if everyone did this. If everyone did this, everyone would just buy the same stuff with cash.

For the record, I have had zero credit card debt since 1986. I don't say that in to be bragging. I say that to point out that IMO its the #1 financial drain on individuals. THAT's why I argue that it should be attacked first.

 

I guess I'll have to logon to his website and check out his scenarios.

 

His theory's also account for more than just the mathematics of the situation. His believe is that by paying off the smaller debts quickly and rolling that payment onto the next smallest, you will receive an emotional benefit that you wouldn't get by simply put the money towards the highest rate and not necessarily pay any one debt in full.

His theory's also account for more than just the mathematics of the situation. His believe is that by paying off the smaller debts quickly and rolling that payment onto the next smallest, you will receive an emotional benefit that you wouldn't get by simply put the money towards the highest rate and not necessarily pay any one debt in full.

 

And that is big. It is easier to stay with the plan, when you are continually seeing your debt shrink by eliminating creditors. It will encourage you to stay with the plan.

But you said if everyone did this. If everyone did this, everyone would just buy the same stuff with cash.

 

They wouldn't have any until they paid they're debt. The economy crashes in that time. Just take one segment. Auto industry. Just say for one year, only the people that can buy a car with cash can buy one. Goodbye auto industry.

That it is his view. You pay cash for the car, let's say a $1,000 car. Save the money that you would have been paying in car payment for a new car. $300 a month for 1 year, gives you $3600. Trade in the $1,000 car for about $300 and buy the approximate $4,000 car with your savings.

 

Save the payment for another year and you have another $3600 in savings. Trade in the $4,000 car for approximately $2500. And now you have $6100 to buy a better car.

 

That is better than buying a $20,000 car that you cannot afford.

 

Your assuming of course the $1000 car runs for a year and doesn't kill you in trying to keep it running.

They wouldn't have any until they paid they're debt. The economy crashes in that time. Just take one segment. Auto industry. Just say for one year, only the people that can buy a car with cash can buy one. Goodbye auto industry.

 

Sounds good. The main thing is that I"m going to take care of me and my family and everyone else can make their own decisions.

 

I would recommend this book to anyone that feels hopeless about their financial situation.

His theory's also account for more than just the mathematics of the situation. His believe is that by paying off the smaller debts quickly and rolling that payment onto the next smallest, you will receive an emotional benefit that you wouldn't get by simply put the money towards the highest rate and not necessarily pay any one debt in full.

 

Funny you posted this. I was just going to post that the true factor of this approach is the positive feeling generated which will inspire one to keep on track. That's a big positive.

CSHS, I have his book and will happily lend it to you. It will answer your "questions" far more accurately and with greater explanation that any of us could do in a post in this thread.

 

I've never listened to his show but did read the book and do like the basics of his (admittedly common sense) program. The debt snowball method worked very well for the wife and I a few years back (and cshs, I know what you're thinking...don't type it). Like many others have said, the only debt I have is our house (houses, technically, but one has rent to cover the mortgage / expenses) and my car. We actually use our credit card very often, to pick up Capital One Go Miles, but it gets paid off every month.

 

Count me in as a Dave Ramsey fan. However, to CSHS' points, I think Dave is the best solution when you are debt-heavy -- not when you get into the wealth building portion of your life.