I'm LOVING that dividend!

[Jackburton]

I'm a huge fan of his baby steps program. Its a sure way to get out of debt and the methods involved are proven to have more of a positive psychological affect than many other programs. That means people are more likely to stick with it. Saving $1000 as the first step and paying off the lowest balance bills first to start the "debt snowball" instead of attacking higher interest bills is the key.

The initial $1000 is there if someone hits a snag financially during the program and are less likely to be demoralized by it and will likely recover quickly and continue the program. And seeing smaller bills disappear and compound into more and more money to pay off the bills with higher balances more quickly is a huge moral boost. I actually had fun with the program. Its not necessary to live on rice and beans but that definitely speeds up the process.

His investing advice is definitely debatable and tends to be more generic or playing it safe advice. And his stance on buying cars is doable but not practical for everyone. His advice on credit cards is sound but many people use credit cards to take advantage of the points. I quit doing that because I hated waiting for credit card payments (which I was paying off as soon as they would appear) to clear. Its strictly debit card for me now. For investing advice I search the internet.

I use my credit card for the points, Amex blue cash (no annual fee) for 3% cash back for groceries (average 180.00 spent a week) which goes up to 6000 a year for the 3%. I only use the Amex for the groceries. Amazon visa for 3% cash back from Amazon purchases plus 2% back on gas (no limits on both). I pay each off every week with a simple log in on my phone and haven't payed interest on any card for 10 years.

Dave Ramsey's catch phrase is "He's never met a millionaire who says they made thier millions off of points". While that may be true, responsible use of credit (Clark Howard) can be achieved. I'd also like to mention one other thing Dave says, "Use a debit card instead of a credit card, it has the same protections". One thing Dave fails to mention, money instantly leaves your account. If it gets compromised, which one is going to be easier to resolve, especially if you have other bills you're going to pay and someone empties your checking account in 10 seconds. Credit card companies actively watch your account, as they are on the hook if your account gets compromised, your debit card isn't.

 

[Brownslave688]

I use my credit card for the points, Amex blue cash (no annual fee) for 3% cash back for groceries (average 180.00 spent a week) which goes up to 6000 a year for the 3%. I only use the Amex for the groceries. Amazon visa for 3% cash back from Amazon purchases plus 2% back on gas (no limits on both). I pay each off every week with a simple log in on my phone and haven't payed interest on any card for 10 years.

Dave Ramsey's catch phrase is "He's never met a millionaire who says they made thier millions off of points". While that may be true, responsible use of credit (Clark Howard) can be achieved. I'd also like to mention one other thing Dave says, "Use a debit card instead of a credit card, it has the same protections". One thing Dave fails to mention, money instantly leaves your account. If it gets compromised, which one is going to be easier to resolve, especially if you have other bills you're going to pay and someone empties your checking account in 10 seconds. Credit card companies actively watch your account, as they are on the hook if your account gets compromised, your debit card isn't.

And they don't have the same protections. I think your usually liable for the first $200 with a debit card. I'm excited about a new card I'll be getting. Fidelity credit card. 2% right into an Ira how awesome is that.

 

[pretender]

I don't follow Ramseys advice to the letter. however, a good portion of it is just good ol fashioned advice. it's the way our parents and grandparents were raised too.

Except, he leaves his teeth in...

 

[Overpaid Union Thug]

I'm a huge fan of his baby steps program. Its a sure way to get out of debt and the methods involved are proven to have more of a positive psychological affect than many other programs. That means people are more likely to stick with it. Saving $1000 as the first step and paying off the lowest balance bills first to start the "debt snowball" instead of attacking higher interest bills is the key.

The initial $1000 is there if someone hits a snag financially during the program and are less likely to be demoralized by it and will likely recover quickly and continue the program. And seeing smaller bills disappear and compound into more and more money to pay off the bills with higher balances more quickly is a huge moral boost. I actually had fun with the program. Its not necessary to live on rice and beans but that definitely speeds up the process.

His investing advice is definitely debatable and tends to be more generic or playing it safe advice. And his stance on buying cars is doable but not practical for everyone. His advice on credit cards is sound but many people use credit cards to take advantage of the points. I quit doing that because I hated waiting for credit card payments (which I was paying off as soon as they would appear) to clear. Its strictly debit card for me now. For investing advice I search the internet.

I use my credit card for the points, Amex blue cash (no annual fee) for 3% cash back for groceries (average 180.00 spent a week) which goes up to 6000 a year for the 3%. I only use the Amex for the groceries. Amazon visa for 3% cash back from Amazon purchases plus 2% back on gas (no limits on both). I pay each off every week with a simple log in on my phone and haven't payed interest on any card for 10 years.

Dave Ramsey's catch phrase is "He's never met a millionaire who says they made thier millions off of points". While that may be true, responsible use of credit (Clark Howard) can be achieved. I'd also like to mention one other thing Dave says, "Use a debit card instead of a credit card, it has the same protections". One thing Dave fails to mention, money instantly leaves your account. If it gets compromised, which one is going to be easier to resolve, especially if you have other bills you're going to pay and someone empties your checking account in 10 seconds. Credit card companies actively watch your account, as they are on the hook if your account gets compromised, your debit card isn't.

There are two reasons why he bashes credit cards. 1) Studies have shown that people in general will spend more money with credit cards than people that use debit cards. It's psychological. A debit card has almost the same psychological affect as handing a cashier actual cash to pay with. This reason, along with the fact that too many Americans aren't living on a budget and aren't responsible financially, is why credit card debt is is eating people alive.

2) When I was part time and was able to listen to him more he'd often get calls from people that were in huge credit card debt. They told stories about how they were being harassed by issuers' collection departments. At first I thought "well duh you owe them money" but these companies were actually breaking laws with their methods. Amex seemed to be the worst.

Dave's advice is geared towards giving people the ability to avoid disaster by simply avoiding the tool used to facilitate it. Kind of like telling someone to quit eating Mexican food to avoid a heart attack. Yes, everyone knows that eating it in moderation won't cause a heart attack but at the same time...... do you really need it? The same logic can be applied to credit cards. I did experiment with credit card points but only after I finished "baby step 3." I made sure I only used credit on bills and purchases I would have made with my debit card. Nothing more. I honestly think many people could swing that if they would just apply Dave's methods, or any other similar methods, prior to beginning. For that reason I felt like I had a new found discipline financially.