What are your thoughts on Dave Ramsey?

[Confused33]

Did you know that he filed bankruptcy?

I figured he had some great story about eating cold grilled cheese sandwiches and working his way out from underneath a mountain of debt using his "debt snowball" strategy.

I never have liked him, or any of the other people that sell $20 + books and videos on how to get rich quick or get out of debt. I think its all a scam.

Am I wrong to feel this way?

[arkienurse]

To each his own, you know. I happen to agree with quite a few of his principles. But I disagree with some others. He is a bit fanatic about some things. Did you know he paid back in full everyone he bankrupted on? But he does not advocate that you have to do that.

[JRScott]

Dave is very honest about having to file bankruptcy in the 80s. He was a land mogul who was overleveraged. The market fell out and he lost his shirt. In fact if you'd read any of his books you would have known he had filed.

His course is actually very good. It helped me after my bankruptcy to make a series of changes and to come up with a budget. My income has not yet allowed me to do all his program suggests but I do have an emergency fund. I actually had not heard of him prior to filing. If I had heard about him 3-4 years earlier I might have been able to avoid bankruptcy.

He also admits that his program will not work for everyone. His program is about learning to live within your means and cover yourself for those rough bumps in the road of life. It is the hard lessons he learned when his own world collapsed.

Sadly given the current economic situation it is less likely to help people right now than in the past as his program calls for taking on extra jobs. With so few jobs available right now it will not be possible in all areas, though the budgeting lessons are very useful even after bankruptcy.

[Confused33]

Wow, I didn't know he paid them back.

I don't claim to know his whole story so what I am saying might be speculation.

I'm not discounting his work, maybe I spoke too soon. I will probably use his exit course because its come highly recommended. I'm all for change at this point and that is why I'm here!

[momof3b1g]

From what I have heard about him. I don't care for him. The things that have been told about him seem like common sense. I too could write about the things he says to do. Most of it is the way of thinking. The one thing that comes to mind is using cash instead of a debit card. As a debit card you feel like you are charging. No i alwasy think of my debit card as cash. if i don't have the money to spend i don't use it.

[deadbroke99]

[QUOTE=Confused33;227173]Did you know that he filed bankruptcy?

I took his financial peace university class with my husband. It was very good and made alot of sense. I was in too deep by the time I took it for it to help me but if I had taken it years earlier, I wouldn't be sitting where I am today.

[lrprn]

Like every expert who makes a living off selling advice and related products, you have to take Dave with a grain of salt.

Do a search here in the forums for "Dave Ramsey" - you'll find multiple posts stretching back years about what our members have personally experienced following Mr. Ramsey's advice (good and bad).

[Never_Again]

Dave Ramsey's advice is really nothing new, and IS just common sense. However, some don't practice common sense, or it isn't all that "common."

The most basic, and helpful thing that he teaches is to live on a budget, and to plan every dollar on paper before you spend it. This is powerful advice, and everyone would benefit from using it. But, you don't need Dave Ramsey to do that.

[HHM]

Dave Ramsey's advice is really nothing new, and IS just common sense. However, some don't practice common sense, or it isn't all that "common."

The most basic, and helpful thing that he teaches is to live on a budget, and to plan every dollar on paper before you spend it. This is powerful advice, and everyone would benefit from using it. But, you don't need Dave Ramsey to do that.

\\

I agree, I don't think the advice is all that common.

If you really think about, there really is no financial education in this country. Basically, most of his advice is sound and you need to seperate the man from the advice. Also, those that tend to be more hostile toward him are those that knew they should have followed his advice but didn't.

[broncho14]

Count me in the club who likes Dave and wishes that he had listened to him years ago. I do think that Bankruptcy is a great option for some people. I have never heard him advise anybody to file but I know that it was in my best interst to do so. Even in a Chapter 13 I am using some of his principles, like building up an Emergency Fund. The only difference is that I just continue to build because I am not in a 100% payback plan. I have heard him advise people who are in a Chapter 13 to buy out early but my understanding is that the only way to do that under the new law is at 100%. I am at 53% payback. Therefore, it would not make since for me to pay out early unless I fall into a lot of money. Therefore, I am just saving extra money that I have. I am also living on a strict budget and I have to pay cash or debit for everything. When I get out of this I will continue on the budget and I will continue to save. However, I will start to follow some of the other principles that he has when I get out of this as far as investing, etc. My question is this, when I get out in 4 and 1/2 years should I obtain a Credit Card to build my credit score back up? Dave Ramsey says no. However, I would eventually like to buy a house (again way down the road) and my attorney, who is very good and very knowledgeable, advises me to get out as soon as possible after the discharge to help build my credit back up.

[Trixie007]

I've been through his Financial Peace University and am using a lot of the ideas that he teaches - he does have some great ideas and explains them very well. He never really tells anyone to file BK, but I've heard him say many times that if you can pay off your debts using his techniques in 3 years, pursue it intensely... reading between the lines, if you can't, then BK?

[BillyRip]

My question is this, when I get out in 4 and 1/2 years should I obtain a Credit Card to build my credit score back up? Dave Ramsey says no. However, I would eventually like to buy a house (again way down the road) and my attorney, who is very good and very knowledgeable, advises me to get out as soon as possible after the discharge to help build my credit back up.

We all need SOME credit unless, like you said, we come into some BIG money.

I would think that after 4 1/2 years, and sticking to your plan and budget, one or two credit cards won't hurt you.

[banca rotta]

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I agree, I don't think the advice is all that common.

If you really think about, there really is no financial education in this country. Basically, most of his advice is sound and you need to seperate the man from the advice. Also, those that tend to be more hostile toward him are those that knew they should have followed his advice but didn't.

A big reason why I feel that the debtor education is the only part of the 05 reform that made any sense. Dave has repeated this many times when he was outspoken about the reform. He was upset as we all are that the banks can simply buy Congress to fix their broken business model.

I also love when Dave says that people go to college to "become smart" and most of these people go into non bankruptable debt for six figures to get jobs that pay 40k a year for many years, not just the beginning. His way states you should deliver pizzas and go to a community college which I strongly agree with but what do I know.

[banca rotta]

I've been through his Financial Peace University and am using a lot of the ideas that he teaches - he does have some great ideas and explains them very well. He never really tells anyone to file BK, but I've heard him say many times that if you can pay off your debts using his techniques in 3 years, pursue it intensely... reading between the lines, if you can't, then BK?

I don't know. Dave actually hates the thought of bk, probably because of his religous values.

This is the one thing I DO NOT agree with Dave on and it's the subject of bk. He doesn't like it even as a last resort. He has stated that people should actually borrow or even withdraw money from their retirement accounts to avoid a chapter 7.

I do NOT agree with this. Somone his going to get hurt let it be the cc companies. I would rather someone bankrupt them instead of a retiree in poor health apply for food stamps and other entitlements.

It really doesn't matter either way anyway since it's the banks currently applying for welfare.

[Never_Again]

We all need SOME credit unless, like you said, we come into some BIG money.

I would think that after 4 1/2 years, and sticking to your plan and budget, one or two credit cards won't hurt you.

This IS the conventional wisdom, that gets so many into trouble!

And, after sticking to your plan and budget, you shouldn't need a credit card, but if you must, you can do it with one.

Be more concerned with Net Worth than FICO!