Dave Ramsey- Financial Peace University

[Lash]

Anybody ever take any of his classes? My wife and I are currently. Every person in this country should go through it.

Three cool facts I heard tonight. Google if you want...

1- Last year more people filed for bankruptcy than graduated from college.

2- Sears earns more profit from the interest on their 'Sears' credit card than all of the profit from ALL products sold.

3- More people withdraw from 'for profit' colleges as a result of debt rather than academic failure.


Amazing :stare

[05caddyext]

What is the point of taking the class? To get out of debt? To cut your ties with credit? The problem is that the world runs on credit. So unless you are independently wealthy, you need it. People have, and always will live beyond their means. I sort of look at things from a different perspective. You says Sears ears more profit from its interest on its credit cards? First of all, Sears is owned by Kmart so that is impossible. Second of all, Sears doesn't underwrite their own credit cards, an outside bank does, all the profit goes to them. But that was a tangent. Here is my point. If people didn't run up their credit cards at places like Sears, Home Depot, Menards, you name it, those places would be out of business. These companies thrive on our own needs and wants. And we all work for these companies also. The entire world runs on credit. We have to get used to it. It would be nearly impossible to not use credit. Unless you have a lot of money already, or you plan on eating ramen noodles for the rest of your life just to prove a point.

[Lash]

lol

[Lash]

I worded it wrong anyway. The dollar amount made off interest exceedes the dollar amount made off merchandise.


Credit is the reason this country is in the crapper.

[That_Guy]

What is the point of taking the class? To get out of debt? To cut your ties with credit? The problem is that the world runs on credit. So unless you are independently wealthy, you need it. People have, and always will live beyond their means. I sort of look at things from a different perspective. You says Sears ears more profit from its interest on its credit cards? First of all, Sears is owned by Kmart so that is impossible. Second of all, Sears doesn't underwrite their own credit cards, an outside bank does, all the profit goes to them. But that was a tangent. Here is my point. If people didn't run up their credit cards at places like Sears, Home Depot, Menards, you name it, those places would be out of business. These companies thrive on our own needs and wants. And we all work for these companies also. The entire world runs on credit. We have to get used to it. It would be nearly impossible to not use credit. Unless you have a lot of money already, or you plan on eating ramen noodles for the rest of your life just to prove a point.
If you actually believe the shit you just spewed out.. then you haven't the slightest clue how to manage finances. I pay for everything cash. If I don't have the money for it I don't need it. The only time I ever broke from that was when I bought my car and had it financed for 0% apr. I am really debt free aside from a medical bill I accrued as of last summer. For college I payed for it cash. The best part is everything I make is money in the bank and I am saving up to buy my first house out right. I have 2 credit cards both of them have a 0% balance. I use them to fill the tank on my car once a month just to establish a credit history outside of my car that is interest free.

[Lash]

Good for you! That's awesome. That's what were working towards.

[05caddyext]

Of course I believe the stuff I spewed out, because it's the truth. Do you know how I know this? I personally financed my college education as well, nearly $45,000 from UW-Whitewater. I have two degrees. I have excellent credit because I have been getting and paying off loans since I was 18 years old. I believe it to be true because I live in the real world. I already own a home so who's further ahead? You will be purchasing your first home with cash, while I will be moving on to probably my third or fourth home, each time hopefully making money along the way. I would say that I know how to finance my finances much better than you, because I know it's impossible to live comfortably in the real world without credit. Within the next 5 years I will have the opportunity to purchase the business I currently work for, without credit this also would be impossible. If you continue to live by the "if I don't have money for it, I don't need it" wait until you purchase a home. I am not saying I don't admire you for that. If I didn't like cars so much, I would have been able to buy my home with cash. I figure I have made about $250,000 since I started working. If I didn't like cars, movies, tvs, stereo systems, vacations, etc, I could have bought my home. But I choose to live my life the way I want to. And I am from the generation that wants everything right now. So I have no problem paying a little extra for the things I want because I already have them.

I almost died a few years back in a canoe accident and I vowed to myself that I would never pass up an opportunity again. I could have and probably should have died that day, so I now live the way I choose because I can't promise tomorrow will be here.

[That_Guy]

Good for you! That's awesome. That's what were working towards.

That's what America need to get back to.

[Prince Valiant]

I don't mind using credit...but pay everything off at the end of the month. Once my wife starts working again, the goal will be have the house paid off in 5 years.

[T-Bag]

I haven't attended FPU (probably will sometime in the future), but his Total Money Makeover book completely changed how I handle my finances. I'm doing his "baby-step" program and will be debt free next month (only about $6500 worth for my bike, paid for in 4 months). I highly recommend picking it up to go along with the course...although it probably is just a starter to FPU. I also listen to his talk-show on SiriusXM, mainly for the comedy factor of broke people with a ton of debt trying to justify their ways, the way he shuts people down is awesome.

05Caddy, you are not spewing the truth. My brother, who at age 30 who had almost no credit history besides paying off a CC every month, paying for rent and utilities, has an EXTREMELY high credit rating. You don't need loans to run the world. The only debt that Ramsey supports is obviously a Mortgage...IF YOU CAN AFFORD IT. There's tons of people that live comfortably without having a crapload of debt. As the motto goes...the paid for house replaces the shiny new BMW as the status symbol of choice.

[VroomPshhTsi]

Save your time:
http://www.youtube.com/watch?v=VL3KuaFvOSc

I was $18,000 in debt a couple years ago (student loans). I stopped buying things I couldn't afford and guess what, I'm debt free!!

[FoxStang]

I was $18,000 in debt a couple years ago (student loans). I stopped buying things I couldn't afford and guess what, I'm debt free!!
Now, lets do that macro-economically. Fiscal and monetary policy isn't as hard as those Keynesian crack smokers would have you believe, government expenditure multiplier my ass...

[PureSound15]

Lol @ 05caddy.

There is something a bit skewed with the sears number. They're also earning 2% of every transaction on each card which would be a portion of that income. Your bank and every cars you have earns ~2% every time you use your debit card it credit card (pending recent developments).

Anyway - debt free is the way to go and I (we at work) have noticed an incredible shift towards debt free while going through this deleveraging economy. Pretty awesome to see... Except for the fact that I need some damn loan growth this year!


Sent from my iPhone using Tapatalk

[05caddyext]

You hinted at a major part of the problem. If everyone were suddenly debt free, a huge huge number of people would be out of a job.

[Lash]

You hinted at a major part of the problem. If everyone were suddenly debt free, a huge huge number of people would be out of a job.

You keep thinking that.

[Karps TA]

I'd rather have a little bit of debt and do the things I want to do now, then be debt free and dead tomorrow with a bunch of cash in the bank that will do me no good. But I'm single with no family. I'm not saving my cash for anyone. If I had a family I'd have a different opinion most likely. I just think people wrap themselves up to much thinking about a tomorrow that isn't promised and forget to enjoy today.

[WickedSix]

I've been doing alot of what Clark Howard recommends to try and get my credit stuff back in check in the next 3 yrs and get my student loans paid for in 10. Has anybody listened to both CH and DR and could compare the two? I'm all for ways to get debt free.

[Prince Valiant]

I've been doing alot of what Clark Howard recommends to try and get my credit stuff back in check in the next 3 yrs and get my student loans paid for in 10. Has anybody listened to both CH and DR and could compare the two? I'm all for ways to get debt free.

much of what they say in general is similar...only the particulars are different. Both go for debt free, etc...though they might have slight variations on the best help or methods to do it.

Where CH is different is in his general frugal push for everything, whereas DR focuses less on that and how one can manage ones debts. You probably wouldn't call DR with questions about the best way to plan an out of country vacation, but you might call him about the best way to save/pay for it.

[pOrk]

Besides my mortgage and a small auto loan I am debt free as well, although I rarly use cash I do pay off my credit card bill every month to hold a zero balance. I also go to florida twice a year for vacation with my wife, have lots of bicycles and usually a motorcycle or two, and I make less then the majority. Its all in how you spend it and when you spend it, if I can't afford something then I don't need it imo