Well, I would think you would close shop.
I understand that most people's answer would be to borrow until you could turn things around.
Seems risky.
Now, take than with a grain of salt, as I am allergic to risk ;-)
Non recourse loan, haven't heard of that, have to do a little googling.
Not sure, and saying "fell victim" implies he has a bad strategy.
Not sure I agree it's bad, just different.
It seems to make sense to me.
Why borrow if you don't need to.
Seems like it might be better to make it work without borrowing, and only borrow as a last resort.
Well, he has, but only because I was "stupid" and got myself into a mess of credit card debt.[/quote]
I do and I probably will again.
I have 6-kids, so finding a home that fits us comfortably that I could pay cash for would be next to impossible.
I would rather not get a mortgage, but not sure if I see many other options.
I am ok with a mortgage though, but only when the house is worth more than the amount owed.
It's still debt, but debt that can be payed off fairly quickly.
He doesn't support 15 year mortgages, just says he won't hold it against people or yell at them for it.
He's pretty clear he doesn't support debt period.
He only supports a mortgage with 20% down and a 15 year mortgage.
Usury, have to go look at at that thread, that's a new term for me.
Thanks for the reply webdog.
Really enjoy reading other people's perspectives and I love to learn new things...off to read about ursury :)
I will be starting Dave Ramsey's Financial Peace University On Wednesday Night at Church. I'm not really in it for the getting out of debt as I don't see I have a lot. But I am interested in growing my savings and having an emergency fund to fall back on.
I would like to tell ya'll of something from a DivorceCare Video lesson. A lady said people should not look at them as "Credit Cards" they are "Debt Cards" That may curb some of the people from using them.
And you shouldn't use Credit Cards because if you can't afford to pay for it now then you can't afford to pay for it at all. I thought this was good advise. I realize not all will feel so but I do. And if you like paying more for something in the long run I say go for it. But I don't. If I could buy a house with cash I would be happy not to have that payment as well.
Speaking of Ramsey and credit cards - I heard him recently tell a young guy (early 20's at his first job) to not get get a credit card whatsoever. I was dumbfounded. I've had a credit card my entire adult life and have always used it like a debit card - paying it off at the end of each month. I've never paid any interest. And I earn hundreds of dollars a year in cash back. I make money when I use my credit card. And it is convenient and useful in buying stuff online, making reservations, etc.
Bottom line, Ramsey is dead wrong on this. It reminds me of the gun control advocates who think guns kill people. No, it takes a person to pull the trigger. Same thing with credit cards - they don't build up debt on their own - it take a financially irresponsible person to do so. But in good hands, a credit card (or a gun :laugh: ) can be a wonderful thing!
Some people can handle credit cards. those people don't need Ramsey.
We run most all our purchases thru American Express/COSTCO last year and got $00 kickback last year. Waht we save at COSTCO on coffee pays for the membership fee.
Let me introduce you to people who have less discipline than you do....thousands, actually. I'm glad you're disciplined enough to do what you do. Many (if not most) people are not. I don't think I'd use the "dead wrong" moniker. Since the average US household carries $9,200 in credit card debt (SOURCE:
cnn.com), I would say that Dave Ramsey is simply "playing the numbers--that most folks do not handle credit cards wisely; and thus are better of fnot having any.
I understand.
It's just a radio program with quick hits.
The guy he was talking to had no history (he was just out of college at his first job) of not being able to handle debt.
He wanted a card to make his business travel more convenient - i.e., making hotel reservations.
He didn't have enough cash to pay for the hotel rooms up front, so he was going to ask his employer for advances.
Then he wondered if it made sense to get a credit card and just pay it off at the end of the month.
Ramsey told him no way - that "we don't borrow money like that."
Well, I'm sorry, you are not borrowing money when you pay it off each month.
I guess I was looking for a little more nuance from Ramsey.
However, I probably need to remember his target audience.
Ramsey is equivalent to the kindergarten level of financial advice. He is best for those that have none to very little knowable of finances and little to no discipline.
Because of that he must be gear his show to the masses and unfortunately when speaking one on one he often gives some horrible individual advice because of his obsession that everyone must adhere to his way.
For anyone who is past the basic level of finances they would be better off not following his advise as such a strict set of rules. Financial matters must be looked at individually for a person to make the best decisions. It is impossible to have such broad parameters to think that everyone would be best off doing the exact same thing.