re: My experience Interviewing for Dave Ramsey

They're not being taken advantage of, generally. That's my point. My personal feelings about their products might be that they're overpriced or that the company shamelessly uses a cult-like atmosphere and aggressive marketing to its core demographic to reap a profit. But personal feelings aside, there's nothing wrong with what they're doing. People get hostile at Ramsey for hitting the church market but he's offering a genuine product with actual value to a market that appreciates what he's offering.

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My biggest annoyance is his math. Someone calls in and says they have 80k in debt, and they make 40k a year.

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I've always heard him tell callers to sell their new cars and take second jobs do I don't think it's really bad math as you suggest.

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I am skeptical of businesses and individuals that make the Christian aspect of business the main selling point. Not talking about places like Chick-fil-A and In-n-Out, Im talking about people that are in your face about it.

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Here's a line you can use. When I was in grad school having lunch a guy walked up to me and said "Do you know Jesus?"

I said "Do you know the opera singer Leontyne Price?"

He became befuddled and walked away.

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Then again, I'm good at math and am not a complete moron, so maybe that is why I don't get the appeal. I'm not sure what he calls "debt-free" but a coworker (and avid Dave fan) protests that I am not debt free since I have a mortgage. I guess technically that is true but I still have a net wealth much higher than the mortgage value, so think I am net debt free.

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And I bet the co worker is completely dumbfounded that you don't liquidate your assets to get rid of the debt.

You know...just because.

If you have a mortgage less than 4.25% and a car note under 6% as debt, I don't think it's the end of the world.

So is rent considered debt, you know instead of paying a mortgage? You have to live somewhere and there aren't a lot of places that you can just go pay cash for in 2015.

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So is rent considered debt, you know instead of paying a mortgage? You have to live somewhere and there aren't a lot of places that you can just go pay cash for

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Technically or legally, maybe, maybe not. I've always constructed my rental agreements as lump sum contracts that I allow you to pay in monthly installments. I only report to credit bureaus if I have to go for an eviction and a judgement. Many larger landlords or management companies now report good credit, in addition to bad. But no matter if it's something like that or a month to month (or even week to week) tenancy, it's certainly a housing or living expense. But as you say, we all gotta live somewhere. The key is to try live somewhere that you can afford and that won't jeopardize your future if things unexpectedly go sour.

I love these threads.

My wife and I were fortunate enough to have been given FPU as an engagement gift. We took the class a few months before we got married and it has been the best thing for us. Seeing where we are now after only 5 years of marriage vs. most of our friends at this point is very rewarding. There's no "secret method" to the plan, or any hidden tricks. It's all common sense that isn't too common these days. We don't buy anything (smaller than a car) that we can't pay cash for. No, we didn't pay cash for our vehicles (sorry Dave) but we haven't kept a car note longer than 12 months.

We make decent money, but have learned to live well beneath our means. This enables us to live a relatively stress free life, which is great after seeing what some of our friends/family go through regularly. Nothing is a financial emergency when you have a plan. I accidently shot out a $900 window while mowing the lawn...no big deal. She picked up a nail through the sidewall of her $300 tire...no big deal. For some, these events would be a major financial emergency.

I listen to the show pretty regularly and yes, Dave is arrogant and pretty blunt, but that's what it takes to wake some people up. I don't always agree with what he says on a numbers standpoint, but like another poster said is all about teaching behaviors. Although debt consolidation will save some $$$ in some instances, it gives a false sense of accomplishment and it still teaches people to borrow their way out of trouble instead of saddling up and taking care of it.

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So is someone only debt free when they own their house and car, and have no credit cards and us pre-paid phones?

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I know what you're saying, but I don't think you can consider these type of "debts". If I go to the grocery store and am doing my weekly shopping, then i'm considered in debt while i'm shopping, right? I'm taking a good and haven't paid for it yet, so theoretically I'm in debt as i'm walking around the store.

Situations like that aren't real life. I would say you're not in debt if your paying off your monthly obligations at the end of every month (minus car and house payment). The reason Dave doesn't want you to even have a credit card, as other people have said, is because you can't give a fat kid cake and that's what you're doing with monthly credit card payments. Regardless if you're paying them off or not, the cake is just sitting there waiting for you to eat it.

I would go out on a limb and say most of the people that are reading this board or comment on this thread are responsible enough to pay off their credit card monthly and keep a fair amount of "good debt" without becoming obese.

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If it hasn't been posted read the book Pound Foolish by Helaine Olen. It will open your eyes (if they aren't open already) to the personal finance business in this country with a chapter on Dave Ramsey. She is not a believer of him. Nor is she of Suze Orman. It is a good read and well written.

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She had a lot to say about what was wrong with those that give advice on personal finance but offered little in the way of a alternative for those that need help. As a hard core liberal, and disciple of Maynard Keynes, she believes if you are broke or in debt it is not your fault, you are just a victim of circumstance, only government programs and changes in policy can fix your problems.