re: Why I have changed my mind on Dave Ramsey

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serious question. how in the hell do people pay off these debts? at 20%-ish interest, it seems simply impossible to me

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All depends on how you got into that debt

Most people get into that level of debt by over indulging in luxuries that they can't afford.

New electronics like bigger TVs, cell phones, indulging in things that are consumable like going out to eat, going out to the bar for drinks. That sort of thing.

If you can eliminate those frivolous purchases you can meet your financial obligations to not only pay the minimum payments but start paying down your debts more aggressively. I've seen people get out of over 20K in CC debt in a year or so by changing their lifestyle and focusing on paying down debt before indulging in luxuries.

I've listened to Dave a number of times and it's interesting to hear peoples stories. I think as a society we have trouble with discipline and delayed gratification, we need what we want immediately.

The message that he provides addresses a large swath of the population. Sure, you can do better if you already have the discipline and knowledge to min/max. Living entirely debt free can provide flexibility and reduces the risk associated with things like a job loss. If you have less in monthly committed expenses, you can weather periods of decreased income. The idea that instead of spending the $20k on a car to avoid having the loan assumes that by taking the loan and keeping the $20k cash, you will not allow it to burn a hole in your pocket and take a trip you really can't afford.

The other thing is there are life events that can take everything you have worked for and destroy it. I'm going through a brutal divorce that may ultimately result in bankruptcy and starting again at with trying to get back to ground zero by my mid-40's. I have a high income but I'm racking up CC debt like nobody's business in lawyer fees and nanny fees, paying for multiple residences. It is very painful to watch all of the assets that you spent decades building get shredded. Once I get through all of this, I will be min/maxing my finances to dig out. In the meantime, I just work to minimize the damage for the portions that I can control and accept the portions that I can't control and keep forging ahead.

I do agree with a previous poster that mentioned wanting less as you get older. Things start to seem like nothing more than clutter and baggage to carry around with you. I have definitely transitioned from wanting more to wanting much less but I want all of the "less" that I have to be higher quality.

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I'm going through a brutal divorce that may ultimately result in bankruptcy and starting again at with trying to get back to ground zero by my mid-40's.

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Prayers sent. A soon to be ex-wife is a true enemy.

If you are still using conventional mortgages for REAL ESTATE THEN YES YOU STILL NEED GOOD CREDIT.