The official Dave Ramsey thread

[FischerKing]

See Dave tonight on 20/20.......

http://www.daveramsey.com/etc/wheres_dave/index.cfm?fuseaction=dspcontent&intContentId=6511

got the dvr all cranked up and ready to record it.

thanks.

shawn

 

[DutchmanAZ]

As of today.....

Since beginning the FPU class (dec 06), my wife and I have paid off roughly 17.5 K worth of debt.....Spending plans really work! We went from having no money at the end of the month to this!!!! I have to admit, 8 K was a bonus which we used, but the other 9.5 was simply $$ discovered through an accountable spending plan. It worked for us everyone...and it's worth considering no matter your financial situation.

 

[Linderbee]

Since beginning the FPU class (dec 06), my wife and I have paid off roughly 17.5 K worth of debt.....Spending plans really work! We went from having no money at the end of the month to this!!!! I have to admit, 8 K was a bonus which we used, but the other 9.5 was simply $$ discovered through an accountable spending plan. It worked for us everyone...and it's worth considering no matter your financial situation.

Congrats! I'm so glad I've always been too poor to have debt

 

[DutchmanAZ]

Poor is nothing more than a state of mind....I've been as material poor as one can get, but at the same time, richer than anyone can be. Poor is a word that was thrown out badly for me....I hope the same for you
I hope that makes sense...it's rather hard for me to articulate.

 

[Linderbee]

Poor is nothing more than a state of mind....I've been as material poor as one can get, but at the same time, richer than anyone can be. Poor is a word that was thrown out badly for me....I hope the same for you
I hope that makes sense...it's rather hard for me to articulate.

I only view myself as poor in the strictest monetary definition of the word. I have everything I need, and much, much more.

 

[FischerKing]

Since beginning the FPU class (dec 06), my wife and I have paid off roughly 17.5 K worth of debt.....Spending plans really work! We went from having no money at the end of the month to this!!!! I have to admit, 8 K was a bonus which we used, but the other 9.5 was simply $$ discovered through an accountable spending plan. It worked for us everyone...and it's worth considering no matter your financial situation.

awesome man - welcome to the club! not having any debt is a wonderful feeling.

shawn

 

[DutchmanAZ]

We're not out of the woods yet...but it sure is nice to see the clearing ahead!!

 

[FischerKing]

We're not out of the woods yet...but it sure is nice to see the clearing ahead!!

yeah - don't get discouraged with it. stay focused and on track - it is well worth the reward at the end.

shawn

 

[Ryanwb]

So I haven't used a credit card in over 2 years. I pay everything cash or on my debit card. So I went to rent a car.......

Screw the car rental world, they wouldn't let me rent a car on my debit card because I was an in state resident. The only place that would do it was Enterprise and I had to put down a $250.00 deposit and have them run a credit check.

Luckily I had a Capital One card for emergencies. Stupid world

 

[Brian in Mesa]

What kind of lame debit card do you have?

Most debit cards have a Visa or Mastercard symbol on them.

Retailers run them like a credit card but the money is still debited from your checking account.

Never had an issue with it.

 

[Ryanwb]

What kind of lame debit card do you have?

Most debit cards have a Visa or Mastercard symbol on them.

Retailers run them like a credit card but the money is still debited from your checking account.

Never had an issue with it.

I have a Platinum Visa Debit Card from Wells Fargo. I think it was because I rented from the Airport, I don't know. They wanted proof of a return ticket. They suck okay

 

[Brian in Mesa]

I have a Platinum Visa Debit Card from Wells Fargo. I think it was because I rented from the Airport, I don't know. They wanted proof of a return ticket. They suck okay

Some policies make no sense.

 

[Mike Olbinski]

What kind of lame debit card do you have?

Most debit cards have a Visa or Mastercard symbol on them.

Retailers run them like a credit card but the money is still debited from your checking account.

Never had an issue with it.

There are still people without good credit or can't get a visa/master card checking card and just have a checking account debit card.

 

[Shane]

Screw Dave Ramsey

 

[Brian in Mesa]

There are still people without good credit or can't get a visa/master card checking card and just have a checking account debit card.

Gotcha. Seems like mine has always had the Visa symbol. Maybe it's because I've banked with the same bank (basically) for over 20 years...

 

[Brian in Mesa]

Screw Dave Ramsey

Shane

 

[Treesquid PhD]

I think the key is really understanding your spending habits and making committed change in behavior based off the numbers. I just don't think people have a great understanding a lot of time of what they really spend their money on, so they just keep accumulating debts all while not having any cash to pay them off.

So the plan I used:
Step 1: Stop living like a millionare until you are actually a millionare.
Step 2: Stop using credit cards, unless it's an emergency.
Step 3: Make a detailed budget, one that categories all your spending
Step 4: Find areas to cut, I found eating out anywhere is a huge one that accumulates daily. Cutting that out alone often saves hundreds each month you can put to debts.
Step 5: Live frugal for a while. I found that saving for everything over $250 is a good way to make sure I really want it and I bypass the whole implusive feeling I get at the store or online.

 

[coyoteshockeyfan]

What kind of lame debit card do you have?

Most debit cards have a Visa or Mastercard symbol on them.

Retailers run them like a credit card but the money is still debited from your checking account.

Never had an issue with it.

All I have is a debit card with a Visa (no credit) and on occasion I run into places that only accept straight credit and can't debit it out. I haven't quite figured out the rhyme or reason for it, but its pretty rare anyways.

 

[Treesquid PhD]

I only view myself as poor in the strictest monetary definition of the word. I have everything I need, and much, much more.

I totally agree with this. I try to live 50% under my means, so that I can save 50% of our income. But the thing is I have everything I need and more. Everyone keeps telling me to ditch my paid off beloved 2000 civic w/87000 miles because I should own a nice car to reflect on my career and enjoy some of the success.
I think it's often this artifical image people try to put off that keeps them from getting their heads above water.

The nice thing about saving is the F off attitude I can bring to work each day. It really is fun not having to depend on a paycheck.

 

[Treesquid PhD]

What kind of lame debit card do you have?

Most debit cards have a Visa or Mastercard symbol on them.

Retailers run them like a credit card but the money is still debited from your checking account.

Never had an issue with it.

You're right, but they are not credit cards, eventhough they "run as credit" it's not credit. From clarkhoward.com

Jul 13, 2007 -- Ditch the Debit, Use the Credit
The Wall Street Journal isn't usually known for protecting the consumer. Yet the paper recently ran an article explaining how dangerous the use of debit cards can be for the average person. That's no secret around here at Clarkhoward.com, where Clark routinely refers to debit cards as a "piece of trash fake Visa or fake Mastercard." Sure it looks like a credit card, and it works similarly to one, but it can really foul you up in ways that a traditional credit card can not.

Say for example you buy a knife set that's being advertised on TV. If you pay for it with your debit card and it never arrives in the mail, you have no recourse. Had you paid with your credit card, all you have to do is dispute the charge. The same pitfalls can occur anytime you use your credit card to pay for something now that you'll be receiving later, such as airline tickets, cruises reservations and more. Other areas of danger with debit cards include the difficulty of refuting charges if your card is stolen, and the practice of hotels and some car-rental agencies that put a large hold on your account in advance of a transaction. Did you know that the latter practice can cause you to bounce checks even though the money is there in your account? The bottom line is that Clark believes the same protections enjoyed by credit-card users should be afforded to debit-card users. But the banks are making a fortune off debit cards, so there's no real incentive for them to change their ways. As Clark says, it used be that bank robbery involved a thief going to a bank and saying "Stick 'em up!" But today it's you that's getting robbed by the bank when you use a debit card.

 

[Shane]

Shane

 

[Brian in Mesa]

Clark Howard has some good advice but I am with Dave Ramsey when it comes to absolutely no credit cards.

 

[FischerKing]

Clark Howard has some good advice but I am with Dave Ramsey when it comes to absolutely no credit cards.

yup, yup, yup...

shawn

 

[nathan]

Here's something that might make some of you guys crazy.

In the last year I've signed up for five credit cards (for $575 in cash and $400 in gift cards in signup bonuses). I use one rewards card for everyday purchases (gas/groceries) and don't buy much else with it or any of the others. I'd have to be spending another 800-1000 per month anyways to not be able to pay off the balance.

BTW, I know too many inquiries can affect my credit score. However those effects are short term (six months). I'm not going to buying a condo/house or anything else big for at least two years, so it's not a big deal IMO.

 

[Brian in Mesa]

Here's something that might make some of you guys crazy.

In the last year I've signed up for five credit cards (for $575 in cash and $400 in gift cards in signup bonuses). I use one rewards card for everyday purchases (gas/groceries) and don't buy much else with it or any of the others. I'd have to be spending another 800-1000 per month anyways to not be able to pay off the balance.

BTW, I know too many inquiries can affect my credit score. However those effects are short term (six months). I'm not going to buying a condo/house or anything else big for at least two years, so it's not a big deal IMO.

Doesn't make us crazy. Makes you normal.