What do you think of Dave Ramsey?

[Diesel73L]

I like Dave Ramsey's views on debt and saving and post discharge we are definitely going to be adopting some of his principles. However, I've also read his views on bankruptcy-mainly that he advises against it in basically all scenarios:

http://www.daveramsey.com/article/the-truth-about-bankruptcy/

Again, once you're out of debt I think he's a good guy to listen to, but is it really responsible to tell folks who are underwater on their homes, buried in credit card debt, and unemployed as so many are these days, that bankruptcy is NOT the answer?

[frogger]

Dave has been cussed and discussed many times here. While I agree with many of his financial principals, Dave is the ultimate example of the pot calling the kettle black.

Do what he says, even thought he didn't take his own advice.

If you're buried, underwater and unemployed, bk is the ultimate answer!!!

[chicagoed195]

Dave Ramsey wants to sell you his vision. Dave Ramsey doesn't make any money off of you if you file bankruptcy, so why would he suggest an approach that would limit his ability to market his products. Bankruptcy is, in many instances, the only way to keep the vultures at bay. It certainly has an impact on your credit rating and your future ability to borrow, but so does being late on your CC payments. If one can't even pay the monthly minimums, his method will not work.

[NewPage]

Yep, I agree with the above. I think he has some good principles, but not everyone can make his plan work. There was just no getting out from under for me. And I also have issues with someone who says no no to BK -- but only after he himself had done it. Hypocrisy, much?

I like Suze Orman better, but I think a lot of her stuff is out of this world unreachable. The call-in segment of her show demonstrates that. "Hi, I'm 47 and have a low-rate mortgage as my only debt, 10k in liquid savings, 150k in investments, and 500k in retirement. I'd like to spend 7k on a trip to the Cayman Islands." And she'll inevitably say: "DENIED! You only have 500k in retirement?!?"

I think combining elements of the two is the best thing.2

[DYLAN150]

Don't like him!

[karm43]

Funny!!!!!

[debee]

Dave Ramsey wants to sell you his vision. Dave Ramsey doesn't make any money off of you if you file bankruptcy, so why would he suggest an approach that would limit his ability to market his products. Bankruptcy is, in many instances, the only way to keep the vultures at bay. It certainly has an impact on your credit rating and your future ability to borrow, but so does being late on your CC payments. If one can't even pay the monthly minimums, his method will not work.

Well said!

[WanabeFree]

I like most of what Dave Ramsey says about working on paying off all your debt and living on cash but disagree with his investment advise and his stance on never filing BK.
I have avoided BK by following his debt snowball plan but have gone against his advice by defaulting on my underwater 2nd Mortgage about 2 yrs ago. We have cut up all but one credit card and live on a zero based budget. When we first started out on this we also defaulted on a couple of credit card bills that have since charged off. Fortunately non of the credit cards have tried to file suit and our second is so upside down they recently offered us a 10% settlement which I quickly countered with a 5% offer that they never answered. We sort of did our own non court based BK.
By the way most of the good stuff Dave Ramsey preaches comes from Larry Burchet who is now deceased.

[Pandora]

Dave Ramsey wants to sell you his vision. Dave Ramsey doesn't make any money off of you if you file bankruptcy, so why would he suggest an approach that would limit his ability to market his products. Bankruptcy is, in many instances, the only way to keep the vultures at bay. It certainly has an impact on your credit rating and your future ability to borrow, but so does being late on your CC payments. If one can't even pay the monthly minimums, his method will not work.

add me to the mix of well said's!

The thing Dave doesnt like to mention is that for him to get where he is currently...he filed BK. As frogger stated..pot meet kettle While I have read his TMM book, there was nothing in it that we werent already doing to a degree of one form or another. But lets be honest - Dave recommends people throw away their life savings, personal belongings, living a meager existence all to pay off creditors when in reality they are broke beyond broke, need to file BK, and start fresh, learning from their past mistakes. When they come to that realization that creditors dont care that you sold your soul to pay them, they want their $ when they want it...and ultimately one ends up in BK anyway, or gets lawsuits / judgments / garnishments.

THAT is what makes one successful following a BK... huh..just like Dave is...

[oicu812]

I do like the debt snowcone(blue flavor)...erm snowball I paid off 27 account/debts/cards I do belive that part is solid..if you have money to do it.
so after I file and complete my ch13bk... I will live like no one else lives!!! and beans and rice and rice and beans will be a side dish on my fat steak dinner!!

[DYLAN150]

I'll like to know what world Suze Orman is living in? It's not this one!

[DirkDiggler]

add me to the mix of well said's!

The thing Dave doesnt like to mention is that for him to get where he is currently...he filed BK. As frogger stated..pot meet kettle While I have read his TMM book, there was nothing in it that we werent already doing to a degree of one form or another. But lets be honest - Dave recommends people throw away their life savings, personal belongings, living a meager existence all to pay off creditors when in reality they are broke beyond broke, need to file BK, and start fresh, learning from their past mistakes. When they come to that realization that creditors dont care that you sold your soul to pay them, they want their $ when they want it...and ultimately one ends up in BK anyway, or gets lawsuits / judgments / garnishments.

THAT is what makes one successful following a BK... huh..just like Dave is...

One might wonder if some of his sponsors are the CC companies

But once we're done with our BK, I plan on taking some of his principles and using them...I just don't agree with some of what he says

[Diesel73L]

But once we're done with our BK, I plan on taking some of his principles and using them...I just don't agree with some of what he says

That's my plan too. Credit after BK doesn't worry me that much because we're going to do everything in our power to not rely on it. Notice I didn't say "not use it," but rather "not rely on it." Post BK I plan on sorting through the credit card offers that will inevitably come rolling in, picking the least of the evils (the lowest insanely high interest rate ) and opening one for my wife and one for me and we'll make it a point to charge a couple of things each month just to rebuild. Other than that-this process (along with the impending birth of our little girl) has taught us volumes about what is really important in life. Not that we were big on keeping up with the Jones' before, but we had aspired to a bigger house, nicer vehicles, fancier vacations, etc... Now that we're coming close to losing all of that and BK is the only thing that we'll save us, we've (happily) lowered our expectations.

[IamIrene]

I know many don't like Ramsey here, but I will say this: He brings common sense to basic money management and if you are part of GenX who didn't get any kind of money management from their parents because their parents were too busy doing drugs/getting divorced/whatever, then Ramsey can be a good thing.

My husband and I went through his financial peace class while we were in active chapter 7...the class on investments was a real eye opener for us. The thing is, a lot of this stuff is pretty basic common sense! But if you've never been exposed to it in the first place, how could you know any better?

Personally, I found value in a lot of what he had to say and what he says about bankruptcy, well, it is excruciating and he does want to spare people that...but I also agree that he wants to sell his system too. Debt snowball works if you can do it. We couldn't...even allowing for money from extra jobs etc, so we filed chapter 7.

Ramsey isn't for everyone, but we did get a lot out of his course.

[BKAttyMI]

I've listened to him here and there, and heard him flat out tell a young couple that NEEDED to file bankruptcy, NOT to do it, but to do everything in their power to avoid it. That made me angry. He wouldn't be where he is today without HIS bankruptcy in his past. Yes, he filed for bankruptcy and has since enjoyed all the success it's brought him. He also likens bankruptcy to one of the most "gut-wrenching, worst" experiences in your life. While the initial decision to file may be "gut-wrenching", I've yet to handle a case where the debtors described it as one of the worst experiences in their life. It's terrible to meet an older couple that has spent their retirement savings and sold off everything they have in order to NOT file bankruptcy, when a bankruptcy years and years ago would have left them in a much better position and now they're being forced to file anyways.

By all means take his advice on managing money, but when it comes to his advice about "avoiding" bankruptcy at all costs, I wish we could see where he would be today without his own bankruptcy.