More ideas why using a credit card can be better that paying with cash:
caveat: I don’t trust all of the information provided by this site as their presentation of economic theory does not seem to have a solid foundation but many of the articles are good despite this.
DR is great.
I worked for 1 yr to pay off all CC and a car loan debt.
Then got stupid and went off the “diet” got married, that didn’t lend well to no debt. 
Doing well again though.
You are here.
My dad is a big Dave Ramsey fan … I’ve listened a few times to him and like his stuff and what he says
He knows his shit
Dave is my guy. I think of him as the Bill Phillips of money. My wife and I paid off all CC debt, student loans, cars, and only owe on the house. After 10 years, my mortgage is 50% paid off.
I have my 6 mo. emergency fund stocked and don’t pay anything via credit. I used to buy everything via credit to participate in cash back/incentive programs, but every month, I was 1 month in debt. That may not be bad, but if SHTF, you’re out 1 months of expenses instantly.
I’d like to start shoveling dough at the mortgage again, but with the economy the way it is, I’m not sure it’s the safest thing to do. I “graduated” Financial Peace Univ and follow a majority of the baby steps, but I’m curious if anyone knows if Dave has updated any financial advice in the wake of the current economy.
[quote]Vegita wrote:
So in order to follow through with my recent discoveries of freedom and the libertarian mindset I have decided I need to eliminate all debt, Pay for things only when I have money in hand to pay for them, save and invest so I am financially free as well as spiritually and intellectually.
I’m looking at approx 2 years to get out of all debt except my house. CC, Student loans, Car Payments, furniture loan, etc… This is assuming neither my wife or I experience any increase in pay, which she just got a transfer at work and I’m assuming that the increased responsibility will come with a pay raise and she is also in a position where she can pick up overtime hours.
I have listened to Dave Ramsey for a couple times on internet radio and read through his website. The plan sounds cool and there are a lot of people who call into his show every day and post success stories on his website. People who followed his plan who have climbed out of debt, paid off thier home in thier 30’s, Amassed a retirement fund of 200,000 in thier 40’s etc…
Any one else follow Dave? If you don’t and you want to get yourself out of debt and have the physical freedom to go along with your intellectual and spiritual freedom, give him a look. I’m excited to tell you the truth.
V[/quote]
I want to congratulate you on the path that you’ve chosen. I’ve lived this way for a long time. The only debt that I have is business related and well under my businesses equity level.
Two years will fly by and you’re going to feel really good about what you’ve done.
I’m excited to tell you the truth.
V[/quote]
So, what kinda progress have you made? Positive experience so far?
[quote]ZEB wrote:
I want to congratulate you on the path that you’ve chosen. I’ve lived this way for a long time. The only debt that I have is business related and well under my businesses equity level.
Two years will fly by and you’re going to feel really good about what you’ve done.
[/quote]
In a world driven by awesomeness Modesty is Underrated.
I love listening to his show…and I think he gives really good advice and has helped a lot of people.
the only negative to me is how he ties things in with Christianity, and tithing to the church and stuff like that.
nevertheless, good stuff.
So, a year down the line, Vegita - what’s the word?
Year down, have not used a CC in a year. We mess the budget up every month and thus don’t hit our preferred marks for paying down the debt. That being said, we still put an average of 900-1000 towards debt each and every month. So after 1 year, we are 12,000 Approx closer to our goal. It might end up being a 3 year plan, but thats ok, we are living comfortably, have adjusted our lifestile to live below our means and we can sustain the pace we are on now indefinately.
I am actually taking a new job in a couple weeks that will provide more income as well, so the 2 year plan my come back to life after all.
V
He has a great mindset and a great plan, but I do think he overplays the evils of debt too much. Generally, though, the message that one should live within his means is one of unqualified greatness, and more people should take a page from the Ramsey playbook.
[quote]Vegita wrote:
Year down, have not used a CC in a year. We mess the budget up every month and thus don’t hit our preferred marks for paying down the debt. That being said, we still put an average of 900-1000 towards debt each and every month. So after 1 year, we are 12,000 Approx closer to our goal. It might end up being a 3 year plan, but thats ok, we are living comfortably, have adjusted our lifestile to live below our means and we can sustain the pace we are on now indefinately.
I am actually taking a new job in a couple weeks that will provide more income as well, so the 2 year plan my come back to life after all.
V[/quote]
Sweet, good job!
I love that saying, “If you tell your money where to go, you won’t wonder where it went.”
So true.
Good job, Veg.
I’ve watched my dad go through a plan he got from Dave Ramsey, and it has been pretty spectacular… He has gone from being an irresponsible slob with a mountain of CC debt to a responsible father (2nd wife, young kid) with no debt except for a brand new mortgage on a house he bought for a steal… he owns his first house outright.
The change in my relationship with him has been startling too. My wife and I went through a really hard time with the failure of our business, and he was able to offer us well-thought-out and effective help. He was also able to give me the type of constructive and pragmatic advice that I could of used years before 
In one sense, I wish that I had carried the mindset that I do now about money… saving, not taking on unnecessary debt, etc… before I opened my business. But, the hardship and humility really changed my outlook on life and my marriage for the better.
