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Dave Ramsey: How To Get Out Of Debt

searcher

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* This is not an absolute "how to" - it's simply food for thought. If you are in debt and want to get out of it........you need to do what will work for you. Always take things FWTW and DYODD.

Dave Ramsey: How To Get Out Of Debt

[video=youtube_share;i2Xx3mN5XSU]http://youtu.be/i2Xx3mN5XSU[/video]
 

Irons

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I don't agree with some of what Dave says but his debt snowball system is right on. When we ( um, me ) decided to get out of debt we had never heard of Dave and he didn't come onto the radio around here until several years after we started the process.

We ended up through trial and error doing almost exactly what his debt snowball is. We would have been done much faster if we would have had his playbook when we started.

I love it when folks say "why would I pay off my house, the interest rate is low." Ask anybody who owns their home if they miss debt enough to pull an equity loan and go back and I doubt you will get one taker.

That is if you can find anybody who has a paid off house.

The reason some rare folks bust their asses for years and shed all debt isn't because they think it's cool, being debt free is the ultimate prep.
If something goes terribly wrong like death, illness or life changing injury the people who are debt free will continue with their lives as soon as the crisis is over.

The people who have payments will go into a spiral of loss as their things are reposessed and will lose the only thing that they actually had and that's good credit. Their lives will never go back to anything they once knew.

Besides, if you really miss walking backward into the bank with your pants down you can pull 100% of your equity and go right back to being passed around and violated. :banana:
 

JFN111

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I don't agree with some of what Dave says but his debt snowball system is right on. When we ( um, me ) decided to get out of debt we had never heard of Dave and he didn't come onto the radio around here until several years after we started the process.

We ended up through trial and error doing almost exactly what his debt snowball is. We would have been done much faster if we would have had his playbook when we started.

I love it when folks say "why would I pay off my house, the interest rate is low." Ask anybody who owns their home if they miss debt enough to pull an equity loan and go back and I doubt you will get one taker.

That is if you can find anybody who has a paid off house.

The reason some rare folks bust their asses for years and shed all debt isn't because they think it's cool, being debt free is the ultimate prep.
If something goes terribly wrong like death, illness or life changing injury the people who are debt free will continue with their lives as soon as the crisis is over.

The people who have payments will go into a spiral of loss as their things are reposessed and will lose the only thing that they actually had and that's good credit. Their lives will never go back to anything they once knew.

Besides, if you really miss walking backward into the bank with your pants down you can pull 100% of your equity and go right back to being passed around and violated. :banana:

Paid off my house several years ago. Best move I ever made.
 

Irons

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Paid off my house several years ago. Best move I ever made.

You mean you didn't instantly pull a HE loan and go on a worldwide vacation featuring Hookers and Blow??
That's un American! nono.gif
 

Ensoniq

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Just because you "own" your home doesn't mean the govt will let you keep it.

Dave sez anyone who invests in gold is an idiot. That's where I turn him off.

SC

Dave says this because he's talking about Gold as an investment. He's write in that sense because it doesn't pay dividends or otherwise appreciate as a result of underlying earnings.

Where he's wrong IMO is that gold is an excellent insurance play, against inflation run wild and other debasements of the currency.

Gold plays a key role in any comprehensive portfolio
 

Ensoniq

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Dave says this because he's talking about Gold as an investment. He's write in that sense because it doesn't pay dividends or otherwise appreciate as a result of underlying earnings.

Where he's wrong IMO is that gold is an excellent insurance play, against inflation run wild and other debasements of the currency.

Gold plays a key role in any comprehensive portfolio

Doh, guests don't have edit buttons to fix typoes. I meant "right" not "write"
 

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the snowball is great.....if you don't mind paying more interest charges (compared to a mathematically sound approach)
 

searcher

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Doh, guests don't have edit buttons to fix typoes. I meant "right" not "write"

Don't sweat the small stuff...............:beerglass:
 

glockngold

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It's sad that what Ramsey has to offer is "revelation material" to his listeners.
But those that can be helped by what he espouses truly need his help & will be better off.

Most here know the bank is not your friend.
The bank is a tool to use when necessary.
When done, put it away & wash your hands.
 

Irons

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the snowball is great.....if you don't mind paying more interest charges (compared to a mathematically sound approach)

True, but the way he teaches it gives the participant ego boosts all along the way and that's important, it keeps you in the game to see wins.

When you are trying to tackle a tough task seeing problems cease to exist really helps. :cheerful:

Hammering on a $19,000 car loan while 3 CC bills nip at your heels makes you feel like you ain't getting anywhere.
 

JFN111

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You mean you didn't instantly pull a HE loan and go on a worldwide vacation featuring Hookers and Blow??
That's un American! View attachment 41510

While I may be slow to pull out my wallet the wife unit is trying to keep the economy going all on her own.
 

Goldhedge

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the snowball is great.....if you don't mind paying more interest charges (compared to a mathematically sound approach)

It's like losing weight. Most folks quit before getting started.

Dave says pay off the small first then apply that money to the next and then the next.

It's the small gains that eventually produce success. A "snowball" effect.
 

voodoo1951

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Just because you "own" your home doesn't mean the govt will let you keep it.

Dave sez anyone who invests in gold is an idiot. That's where I turn him off.

SC

Must have been real idiotic to invest in Gold @ $269 Oz. back in 2001. It's only had a 500% gain since the WTC went down. I "sez" WTF Dave? RU NUTZ...???
 

EO 11110

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It's like losing weight. Most folks quit before getting started.

Dave says pay off the small first then apply that money to the next and then the next.

It's the small gains that eventually produce success. A "snowball" effect.

at irons, gh..

agreed. it's psychologically good.....but net worth bad

whatever works is good!
 

gringott

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Dave Ramsey: Take the good advice and leave the bad. Too simple.

I like listening because of the sob stories like the other day, guy going to get married, intended has over $200K of student loans in arrears, hasn't made a payment in 5 years, what degree?

You guessed it Fine Arts.

Sorry, love is great and all, we will get married when you get rid of that $200K boat anchor. Imagine how much hookers and blow that will buy.
 

Irons

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Dave Ramsey: Take the good advice and leave the bad. Too simple.

I like listening because of the sob stories like the other day, guy going to get married, intended has over $200K of student loans in arrears, hasn't made a payment in 5 years, what degree?

You guessed it Fine Arts.

Sorry, love is great and all, we will get married when you get rid of that $200K boat anchor. Imagine how much hookers and blow that will buy.

I work different hours now so I don't get to listen on my way home anymore, but a year or so back damn 3 out of 5 callers were about student loan debt and the numbers involved were always $45,000 and up with 70k being a common number.

Those people are screwed, blued and game over financially before they even know enough to realize it was a horrible move.

Hussein and the bankers are shooting fish in a barrel.
 

Montecristo

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Dave Ramsey: Take the good advice and leave the bad. Too simple.

I like listening because of the sob stories like the other day, guy going to get married, intended has over $200K of student loans in arrears, hasn't made a payment in 5 years, what degree?

You guessed it Fine Arts.

Sorry, love is great and all, we will get married when you get rid of that $200K boat anchor. Imagine how much hookers and blow that will buy.

200K!? Holy Mackerel! That better be some damn good.....well, I hope she can cook at least.
 

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I like listening because of the sob stories like the other day, guy going to get married, intended has over $200K of student loans in arrears, hasn't made a payment in 5 years, what degree?

You guessed it Fine Arts.

That's what you call a "would you like fries with that?" degree.
 

ttazzman

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thought #1.........200k.......at least she told him before marriage (heard a lot of stories about discovering debt after marriage....what a nightmare)

thought #2.........none of these principles work till people learn to live UNDER their means

I did well......lived by the principle of living far under my means.....never used debt on anything that depreciated.......got my kids though college with no debt.......was able to retire at 50 with no debt and plenty of reserves
 

Thecrensh

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When I was married, we had $40,000+ in CC debt at one point. I let my ex take care of the finances; she made minimum payments, and there never seemed to be any reduction. When I got divorced in 2010, I was neck deep in debt ($100K legal fees alone!!). Next month, I will be "debt free" with the exception of my 1-year old mortgage.

I have learned to live well below my means (it's MUCH easier without a wife!!!) and am very restrictive on my children and I get for fun (eating out, vacations, "gadgets", etc).
 

Shortstack

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Just because you "own" your home doesn't mean the govt will let you keep it.

Dave sez anyone who invests in gold is an idiot. That's where I turn him off.

SC

We have historically low interest rates. Would you rather have a 100k mortgage along with 60k in cash and 60k in PM's or no mortgage and 10k in cash and 10k in PM's?
 

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We have historically low interest rates. Would you rather have a 100k mortgage along with 60k in cash and 60k in PM's or no mortgage and 10k in cash and 10k in PM's?
The second one. The one without debt.
 

Irons

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meh.........................
 
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The_Head

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The local radio station carries his show. I listen to it alot. He always quotes the bible "The debtor is slave to the lender"

I'm trying to be debt free before I turn 40.
 

Irons

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The local radio station carries his show. I listen to it alot. He always quotes the bible "The debtor is slave to the lender"

I'm trying to be debt free before I turn 40.

:23_28_100s: Good luck to you, if you miss it by a year or two don't sweat it just stay on course.

It took us 12 years and we were shooting for 10. :thumbs_up:
 

Fiat Metaler

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his advice about getting out of debt is good.

eliminating all debt is debatable.

his investment advice is questionable.

but for a self-stlyed Christian, he really comes off like an asshole a lot of the time.
 

Shortstack

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The second one. The one without debt.

I hear you, I am at the decision point right now. It's just that using most of my PM's and cash to pay down a house that keeps falling in value seems like going backwards. Especially when we all know that 4k gold and 250 silver is right around the corner.
 

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To be fair, many here would still hate him even if he told folks to buy PM's over the last few years as depending on when they bought many of his listeners would be buried right now. Furthermore his show is really centered around debt/money management and 19 out of 20 people listening shouldn't be buying PMs as they are carrying credit card debt still. Having said all that though there are times when he can come across like an arsehole, however after talking to dozens of people every day for years I doubt I would sound jovial with every caller myself.
 
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minimus

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Screw the debt.


I opened a thread last fall on getting county health dept citation on my old sewer lagoon - they condemned it .... damn it :mad:

They offered a low interest government loan source .... I said no thanks.

I rented a port-a-potty to get the turd police off my back to give me time to think, I'm broke but out of debt and wanted to stay that way.

Placing a lien on my property for a new septic system ? Screw that.

That was in November. I just finished setting the tank today and got it inspected. I'm still broke and darn tired but its paid for.

It was tough saving the money with the inconvenience of an out house for 8 months .... but being free of debt is true freedom.

Nobody borrows their way to freedom.



PS ... I was still able to collect a few oz's of the shiny stuff over that time ..... hehehe
 

Ensoniq

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his advice about getting out of debt is good.

eliminating all debt is debatable.

his investment advice is questionable.

but for a self-stlyed Christian, he really comes off like an asshole a lot of the time.

He's a self admitted redneck Christian
 

ttazzman

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i am really enjoying the debt free stories and living within means stories here........not to long ago on this forum posters would shout you down for talking debt free living.......it was all about getting loans to the hilt and buying pms with it......funny how a down turn in the market clears the mud out of the water....

..2c worth..
 

Irons

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i am really enjoying the debt free stories and living within means stories here........not to long ago on this forum posters would shout you down for talking debt free living.......it was all about getting loans to the hilt and buying pms with it......funny how a down turn in the market clears the mud out of the water....

..2c worth..

Stockholm syndrome. Being bent over for the line of bankers to take turns makes them feel wanted. :rolleyes:
 

Irons

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I have wondered if old Dave made a deal with TPTB (devil) to be on the air. I'll explain my theory.

Rush and Shawn are allowed to say whatever they want on the air as long as they vocally support republican candidates who are the exact opposite of the very things that they claim to stand for. Nobody is supposed to notice.

For this they are allowed to be rich elites. When one of these clowns backpedals and apologises for something they said you know their masters yanked their chain.

I think Dave is allowed to say whatever he wants as long as he preaches "stock market is good, gold is bad" at the end of the day. TPTB knows full well 99% of the people listening won't shed any debt for any real amount of time.

For this Dave gets to be a rich elite.