Posted on 03/03/2011 5:52:49 AM PST by TheSentry
(Excerpt) Read more at badmoneyadvice.com ...
I have heard him on the radio a few times and I am always surprised how cocky and rude he is to some of the callers. He reminds of Laura Schlessinger, blunt to the point of rudeness, but with some good advice.
I’ve never listened to him, and I’m not sure I’ve heard of him.
But, if he’s telling people to cut up their credit cards or to pay off any balance each month so there are no finance charges, then he’s right on the money.
Sometimes it’s possible that the guy who has had a couple of failures at starting a business is the guy who really has learned how to do a business start-up.
It’s the old trial and error process. If you’ve got the endurance and the cash, then it actually does work.
The people who are most opposed to Ramsey are Goldbugs, people who can’t see their way out of debt (Stockholm Syndrome) and deadbeats.
I would say that if you are in a financial position to renovate a new home, I would think you should have enough cash on hand in savings to cover yourself for a few months and if you don't then you should not be renovating the new home until you sell your old home--- which in this market could be never.
He says right up front several times during his show that he’s not a financial advisor or lawyer and that anyone seeking that kind of advice should get with a professional. You don’t have to agree with everything he says but he does have some really good common sense advice.
All radio personalities are tryin’ to sell something... Ya, I get a little annoyed when someone like DR rails against buying gold then does an ad for a gold buy-back company. Hmmm, he discourages little folks from buying gold, then encourages them to sell what they have of it... hmm, little guy, no gold: more gold for big guy... kinda like screaming fire in a crowded theatre, then setting up a fire extinguisher stand outside.
But, if he’s telling people to cut up their credit cards or to pay off any balance each month so there are no finance charges, then he’s right on the money.
Under most circumstances I agree with paying off the credit card every month, but Dave takes it to the extreme. Don't ever have a card. Never, ever, ever! Because you're a weak person and obviously can't handle them.
At least that's the vibe I got from the videos. Which is why I made my initial statement that he reminds me of a newly recovering alcoholic. He had a problem, so you must have a problem too!
“what would you think about using a card with 7.9% interest for a few months as a “bridge loan” between the renovation of a new home and the sale of the old home.”
OK, I’ll bite. Why not use Savings? Why would you pay 8% to someone when you have the money?
Selling gold gets you money. Buying gold can lose you money. That’s the difference.
7/10 on the rant. Could’ve used some expletives and was a little disjointed in the physical layout, but the overall content was good.
I’ve watched his show. He dares to speak the ugly truth about people being financially irresponsible and that only they have the power to get their lives back on track. He talks of self-sacrifice and hard work. He himself has done it. I’ve never heard him do high pressure sales to get people to buy his Financial Peace materials. I’ve heard him give the course to people on the cuff.
Let’s see, you don’t make much money but you have a new car, a flat screen tv, a cell phone, itunes, and eat out every night. Yeah, there’s no need to change your behavior. It must be Bush’s fault you’re broke.
Money that loses value every day, you mean... and hey did you read the whole of my comment... the point being, every talk show personality is selling something... The whole purpose of any talk show is to garner ratings, so as to sell more stuff.
My experience as a counselor of young couples (20-30 somethings) in the Army tells me that the zero credit card idea is not a bad idea. Young couples just don’t have the financial acumen developed, and credit cards are an easy hole to drop into.
Interestingly, the government REQUIRED every soldier to have a credit card from a government account. Instead of paying them travel expenses, ticket expenses, etc., up front, the new government play was for the troops to charge all that to the government card and then get reimbursed after the fact.
They were always told “don’t use this card for anything else.”
You can guess how that worked out.
Then I'm awfully glad I don't get my financial advice from you. Using our VISA for a self-issued 'bridge loan' worked out quite nicely and cost a LOT less than using conventional bank or credit-union products. Yes, I paid a few hundred dollars in interest to the CC company but I kept my cash on hand to smooth out the monthly cash flow. This was also cheaper than renting a place for four months while the new house was renovated which we would have had to do if we sold the old house before the new house was renovated.
Credit cards are tools; they can be used successfully and safely.
I spent weeks researching all of this and you put it out there in one post!
Net time I’m waiting for the post!
Kidding of course.
great job!
That's my assessment exactly. He does have an almost cultlike following. I'm not sure where all this anger towards him comes from though. Maybe from people who got out of the cult? His advice isn't terrible. It's just not for everyone.
I don't like how he mocks those of us who use credit card rewards points. If he thinks the Millionaires Next Door aren't sitting around bragging about the free stuff they get from their credit card points, he's just not paying attention.
Mostly cash flow management, but also partly psychological. Just as paying off a low-interest mortgage early isn't always the best financial decision, it can be a good decision for your piece of mind.
It’s not hypocritical to say “Gold is risky so sell it if you have it”. I understand his rationale. The goldbugs don’t like his stand on gold.
Ramsey is selling his books and seminars. Amazingly, they actually help people. In return, we get to hear some really dumb people who are worse off than us.
"piece of mind" == "peace of mind"
“Just as paying off a low-interest mortgage early isn’t always the best financial decision”
yeah but after the house is paid off, you can borrow up to the limit on it and invest the money.
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