Dumping Debt and building wealth with Dave Ramsey JANUARY - Page 5 - Mothering Forums

Forum Jump: 
Reply
 
Thread Tools
#121 of 585 Old 01-03-2008, 10:25 PM
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,947
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
Why couldn't you just use a debit card? There is really no benefit to using a credit card and immediately paying it off.
Credit cards sometimes offer protections that debit cards do not have.

Also, if on the off chance your debit card number was stolen, a thief could empty out your bank account in no time flat. Yes, you would eventually be reimbursed for the funds that were stolen. But while you're waiting for the bank to process everything, you'd be left without any money to buy groceries, pay bills, etc. Yes, you'd have your baby emergency fund- but for most people (myself included) $1000 wouldn't cover the month or two worth of expenses that I'd need to cover while I was waiting for the bank to restore my money.

If your credit card number is stolen, you'll still have money to pay bills.

I always use my credit card for online purchases. I'll put extra money towards the credit card bill immediately to pay off the purchase. I know that some people are comfortable using their debit cards to pay for online purchases, but I'm not.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#122 of 585 Old 01-03-2008, 10:26 PM
 
alleyoop's Avatar
 
Join Date: Sep 2007
Posts: 43
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We took a hit today.

DH had a toothache, and the first dentist was $75.00, but he sent him to a second dentist for a root canal. The first thing the root canal dentist's office said to him when he walked in was how much it was going to be. They didn't take insurance (which we don't have anyway) and wanted payment in full before leaving. $1,300.00. Then $33.97 for the RX for pain and antibiotics. So, a grand total of $1,408.97, plus DH lost a day of work while getting all this done (he's self-employed).

The upside - we have it in the emergency fund and can pay it but it practically depletes our EF.

The downside - could this have been prevented had DH gotten regular dental care? He cancelled two appointments last year, one in August and one in September, for his regular dental checkup, which was way overdue back then. And he still needs to get a filling in the tooth where the root canal was done. And he needs a crown on another tooth.

But there is an upside, right?
alleyoop is offline  
#123 of 585 Old 01-03-2008, 10:31 PM
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,947
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Oh, and for the roll call, I'm on BS #2- debt snowball.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#124 of 585 Old 01-03-2008, 10:51 PM
 
ekblad9's Avatar
 
Join Date: Nov 2001
Location: Just a slingin'
Posts: 8,193
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
No! Dave doesn't want you to consolidate or refi or move debt around, because it doesn't take care of the problem. Your best bet is to attack the debt, paying off the smallest balance first, regardless of the interest rate.

Rolling the CC's into another loan doesn't mean that they are paid off - the debt is still there, it is just in a different place.
But our interest rate was 29% on the credit cards. We got a home equity loan for 6%. We can pay the cc's off in nearly double the time (more once the car is paid off) because of a home equity loan.

Amy - Blessed wife to Jesse (the best dad in the world), mother of 10 on earth plus 8 in heaven.   PROUD to be a Catholic! : winner.jpg familybed2.gifhomeschool.gif

ekblad9 is offline  
#125 of 585 Old 01-04-2008, 12:32 AM
 
littleaugustbaby's Avatar
 
Join Date: Jun 2003
Location: Yes, we did!
Posts: 7,537
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by annethcz View Post
Credit cards sometimes offer protections that debit cards do not have.

Also, if on the off chance your debit card number was stolen, a thief could empty out your bank account in no time flat. Yes, you would eventually be reimbursed for the funds that were stolen. But while you're waiting for the bank to process everything, you'd be left without any money to buy groceries, pay bills, etc. Yes, you'd have your baby emergency fund- but for most people (myself included) $1000 wouldn't cover the month or two worth of expenses that I'd need to cover while I was waiting for the bank to restore my money.

If your credit card number is stolen, you'll still have money to pay bills.

I always use my credit card for online purchases. I'll put extra money towards the credit card bill immediately to pay off the purchase. I know that some people are comfortable using their debit cards to pay for online purchases, but I'm not.
Visa and Mastercard both extend the same protection for debit cards that they do for credit cards. Depending on the issuing bank, if someone steals your debit card or your credit card and empties your account, you will generally have the money back within 1-2 days. A $1000 baby emergency fund should generally be enough to tide anyone over for 48 hours, unless there is some exceptional emergency.

Here's Dave's Credit Card Q&A:
http://www.daveramsey.com/etc/cms/cr..._q&a_7041.html
littleaugustbaby is offline  
#126 of 585 Old 01-04-2008, 12:35 AM
mtm
 
mtm's Avatar
 
Join Date: Dec 2003
Posts: 1,481
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
Why couldn't you just use a debit card? There is really no benefit to using a credit card and immediately paying it off.
I think debit is much different in Canada than the US. I've rarely seen the debit option for online stuff on Canadian sites.
mtm is offline  
#127 of 585 Old 01-04-2008, 12:50 AM
 
littleaugustbaby's Avatar
 
Join Date: Jun 2003
Location: Yes, we did!
Posts: 7,537
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by mtm View Post
I think debit is much different in Canada than the US. I've rarely seen the debit option for online stuff on Canadian sites.
Most debit cards in the US are linked to Visa and Mastercard, and can be used anywhere that Visa and Mastercard are accepted. Is it not the same in Canada?
littleaugustbaby is offline  
#128 of 585 Old 01-04-2008, 01:03 AM
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,947
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
Visa and Mastercard both extend the same protection for debit cards that they do for credit cards. Depending on the issuing bank, if someone steals your debit card or your credit card and empties your account, you will generally have the money back within 1-2 days. A $1000 baby emergency fund should generally be enough to tide anyone over for 48 hours, unless there is some exceptional emergency.

Here's Dave's Credit Card Q&A:
http://www.daveramsey.com/etc/cms/cr..._q&a_7041.html
I know that's what they say, but I've seen it work out differently in practice. I know people whose debit card numbers were stolen, and it took weeks and weeks for the money to be deposited back into accounts. And in the meantime, the victims had several checks bounce. It all worked out eventually, but it was a HUGE paperwork nightmare to get everything taken care of.

This is why I prefer to keep a CC. Credit cards are also important for anyone who wants to rent a car or hotel room. If you use your debit card for renting a car or hotel room, there is often a very large hold put on your account, which makes the funds unavailable for other uses until the charges are settled.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#129 of 585 Old 01-04-2008, 01:30 AM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by artparent View Post
have you folks stopped using credit?

*

You bet ya! Never going back there again.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#130 of 585 Old 01-04-2008, 01:33 AM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by MonkeyPrincess View Post
Is that not true?
Only if you want to live by the FICO score. This is the debt score. I don't want to live by the debt score because the only way you get a good FICO score is to be in debt, get new debt, and pay on debt.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#131 of 585 Old 01-04-2008, 01:37 AM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by alleyoop View Post
We took a hit today.


The upside - we have it in the emergency fund and can pay it but it practically depletes our EF.

You are a living testiment to why an emergency fund is needed. This may deplete your emergency fund but you will not go into debt over it!!!

Would routine dental help prevent this, possibly, you never know.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#132 of 585 Old 01-04-2008, 01:38 AM
 
JERENAUD's Avatar
 
Join Date: May 2005
Posts: 302
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
Most debit cards in the US are linked to Visa and Mastercard, and can be used anywhere that Visa and Mastercard are accepted. Is it not the same in Canada?
Nope... my debit card isn't linked at all, and I've never personally seen one that is. My debit is issued by my bank.

I'm glad to see this come up - I asked my husband about it the other day, having heard Dave Ramsey talking about it on his show. I figured it *must* be different here, as I'd never heard of anyone doing it the way that I keep hearing about from Americans.

Erica
JERENAUD is offline  
#133 of 585 Old 01-04-2008, 01:43 AM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
You can take a free lesson within the Financial Peace University program. Here is the link.

https://fpuonline.daveramsey.com/

You have to click on this page to get to the lesson.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#134 of 585 Old 01-04-2008, 10:43 AM
 
phathui5's Avatar
 
Join Date: Jan 2002
Location: Oregon
Posts: 17,474
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Quote:
Credit cards are also important for anyone who wants to rent a car or hotel room. If you use your debit card for renting a car or hotel room, there is often a very large hold put on your account, which makes the funds unavailable for other uses until the charges are settled.
My experience has been that the hold is a night's hotel cost. The last time we did it it was a $89 hold.

Midwife (CPM, LDM) and homeschooling mama to:
13yo ds   10yo dd  8yo ds and 6yo ds and 1yo ds  
phathui5 is offline  
#135 of 585 Old 01-04-2008, 11:24 AM
 
Purple*Lotus's Avatar
 
Join Date: Nov 2007
Location: Fluffyville
Posts: 5,680
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by artparent View Post
i haven't met dave ramsey yet but i'm following along.
we are current on our bills *tick
we are 700/1000 to an emergency fund
we have snowballed both credit cards to 0, but allowed them to pop up again. i'm addressing this in another thread!!! have a creditline to pay down, and another loan. i'm hoping to get rid of our car and join a co-op/ride a bike!
we have a home but we're looking for a bigger one!
so i guess that means we're on step 2, though i am slipping money straight from the gov't to my kids resp's, i just pretend it never existed.

lots of possibilities here.

have you folks stopped using credit?

*
Welcome! And yes, we have stopped using credit. I am very happy about that

Quote:
Originally Posted by alleyoop View Post
We took a hit today.

DH had a toothache, and the first dentist was $75.00, but he sent him to a second dentist for a root canal. The first thing the root canal dentist's office said to him when he walked in was how much it was going to be. They didn't take insurance (which we don't have anyway) and wanted payment in full before leaving. $1,300.00. Then $33.97 for the RX for pain and antibiotics. So, a grand total of $1,408.97, plus DH lost a day of work while getting all this done (he's self-employed).

The upside - we have it in the emergency fund and can pay it but it practically depletes our EF.

The downside - could this have been prevented had DH gotten regular dental care? He cancelled two appointments last year, one in August and one in September, for his regular dental checkup, which was way overdue back then. And he still needs to get a filling in the tooth where the root canal was done. And he needs a crown on another tooth.

But there is an upside, right?
I am sorry to hear that, glad you have the EF in place I go to the dentist twice a year and I have had to have two root canals. I am one of those who is super careful with brushing and flossing, so I was always irritated that I had so many cavities when I truly try to take good care of my teeth. My dentist, however, said that some people's body chemistry is just different, and there wasn't much more I could have done to prevent it. So sometimes it just works out that way



Okay so I had a stroke of luck today. Yesterday our washing machine stopped working. DH looked at it last night and found a small part that was broken. He looked it up online and it is a cheap part, only a few bucks, so that was great. The downside? The place that carries said part is 30 minutes away so I was seriously bummed to have to drive there today because I have this driving ban going on. So DH reminded me that AC Moore is right next to this place, and that I had a gift card for there that I could use to get more yarn for blanket donations. That cheered me up. When my Mom called me this morning I told her about my trip, and she said that she really wanted to go to AC Moore as well, and that she would drive me there so I could save the gas money for my car I am super happy that I don't have to drive up there, and also super happy that she can go yarn shopping with me

I know, small victories, right?

Anyway, as far as the credit vs debit thing goes.. Right after we were married and I was added to his checking account, our bank calls DH at work, where unfortunatly he has no cell phone service so he did not get the call, and tells him that his debit card has been used at an ATM.. in Russia! Ironically enough, about 30 minutes before his card was used in Russia, DH had used it to buy gas at the local gas station in WV, which really helped as far as proving that DH's card was not stolen. He still had it in his possession. Anyway, they took about $500 out, which was only really in there because that was the wedding money we had. Basically they wiped out the account. So yes, as far as that goes, we were pretty much out of luck for that evening, anyway. However, by the next day the bank had issued a credit back to our account pending investigation. Basically they sent DH some paper work, we don't have passports so obviously we did not go to Russia and use an ATM, and his debit card was cancelled and reissued. It wasn't a long, drawn out process for us.

And for what it's worth, DH had never used his debit card for any online purchase whatsoever. He had also never lost it or even given it to someone like at a restaurant where they take it away to ring up the bill. So that proves that unauthorized purchases can happen even if you avoid online and avoid having your card out of your possession. So that being said, we now use debit if we have to order something online. I do not use credit anymore.

ribbonpurple.gif  "And the day came when the risk to remain tight in a bud was more than the risk it took to blossom." Anais Nin
   
Purple*Lotus is offline  
#136 of 585 Old 01-04-2008, 01:09 PM
 
tresleo's Avatar
 
Join Date: Mar 2004
Posts: 2,595
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by shanetedissac View Post
Only if you want to live by the FICO score. This is the debt score. I don't want to live by the debt score because the only way you get a good FICO score is to be in debt, get new debt, and pay on debt.

Be well,

Thank you for explaining.

We also choose not to live by our credit score.
tresleo is offline  
#137 of 585 Old 01-04-2008, 02:17 PM
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,947
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I have an honest question for those of you who 'choose not to live my your FICO score.' I understand DR's reasoning for not caring about his FICO score. And I personally don't live my life opening and closing accounts or taking conscious steps to improve my FICO score (which, at the time we bought our house a few months ago was excellent). I just pay my bills when they're due, and that's the extent of my 'working on my FICO score.'

But how do you feel about the fact that credit scores are used for far more than determining whether someone is credit-worthy? FICO scores are used to determine insurance rates, and are often run when a person applies for a new job or apartment. Although I don't live by my credit score, I am a realist who acknowledges that my credit score DOES matter in situtions that have nothing to do with incurring more debt. So I guess I take the attitude that I'd prefer to have a higher FICO score than a lower FICO score. I don't play games to raise my score, but I don't do things that I know will lower it either.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#138 of 585 Old 01-04-2008, 03:20 PM
 
littleaugustbaby's Avatar
 
Join Date: Jun 2003
Location: Yes, we did!
Posts: 7,537
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Not all apartments/rental situations run a credit report. And having worked in the rental industry, most of the ones who do run credit reports don't go by the FICO score, but by what's actually on the credit report.

There are still plenty of insurance (and mortgage) companies who rely on underwriting rather than FICO. It is entirely possible to live without credit or a FICO score, I've done so very easily for the past 5 years.

I guess I have to wonder why someone who does not want to get rid of FICO or credit card debt would participate in a thread for people trying to follow DR's plan and sing the praises of using credit, when the whole cornerstone of the program is to eliminate all debt, stop using credit, and stop worrying about a FICO score.
littleaugustbaby is offline  
#139 of 585 Old 01-04-2008, 03:59 PM
 
Maggi315's Avatar
 
Join Date: Aug 2003
Location: Pennsylvania
Posts: 2,345
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I would love to stop living by my FICO score, however, since we are hoping to sell this house and buy another one as soon as is feasible, we are very aware of this score because it affects our next mortgage rating. It would great to not have to worry about it, but for us, it seems to be a way of life. For example, our car insurance is partly based on it, even if we rented around here, everyone (at least the decent properties) use the credit score and run credit reports (even I did when I was a landlord), and for a few other things.

Once we buy our new house, I will still want to keep my score decent, because you never know when you will need it.

I sympathize with those with medical bills, they suck! I have tons more doctor appointments this month and since it is a new year, new deductibles and expect to have about 3-4K in bills just this month.

Plus, all my kids are overdue for dental, which is ridiculous. One daughter is overdue for braces, no insurance. I need new glasses, just got new contacts, but had to postpone glasses.

We are doing our rough estimate on taxes and see over 15K in medical already, it sucks!!!!

We do have our emergency fund, I've been hanging on like crazy to that, but my husband's check with tiny, tiny this week (he is on comission) and we may have to dip because I didn't get paid for my January births yet.

But, no going into debt over christmas!!! And we are not behind on anything right now
Maggi315 is offline  
#140 of 585 Old 01-04-2008, 04:11 PM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by annethcz View Post
But how do you feel about the fact that credit scores are used for far more than determining whether someone is credit-worthy? FICO scores are used to determine insurance rates, and are often run when a person applies for a new job or apartment. Although I don't live by my credit score, I am a realist who acknowledges that my credit score DOES matter in situtions that have nothing to do with incurring more debt. So I guess I take the attitude that I'd prefer to have a higher FICO score than a lower FICO score. I don't play games to raise my score, but I don't do things that I know will lower it either.
You are absolutely correct that those with a low FICO score will pay more or even be declined for basic services. I just recently moved to a new home fuel provider and was told that my account was pending on a credit check. We do still have a good FICO score because it has only been a year since we stopped getting new debt. We still have a mortgage and will for many years. I think our score will decreace because we will not be adding new debt.

I am willing to take the extra hit or rejection. Paying a bit extra will still keep me WAY ahead.

DR had talked about how he pays more in insurances and such.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#141 of 585 Old 01-04-2008, 04:13 PM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
I guess I have to wonder why someone who does not want to get rid of FICO or credit card debt would participate in a thread for people trying to follow DR's plan and sing the praises of using credit, when the whole cornerstone of the program is to eliminate all debt, stop using credit, and stop worrying about a FICO score.

I second this. There is appropriate support for any need. This support is to be debt free!

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#142 of 585 Old 01-04-2008, 06:43 PM
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,947
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post
I guess I have to wonder why someone who does not want to get rid of FICO or credit card debt would participate in a thread for people trying to follow DR's plan and sing the praises of using credit, when the whole cornerstone of the program is to eliminate all debt, stop using credit, and stop worrying about a FICO score.
I'm assuming this comment is directed at me. I don't want to get rid of FICO, I'm realistic and know that my FICO score affects non-debt related financial matters, such as insurance rates. I differ with Dave Ramsey on that point.

As for singing the praises of using credit, I do believe there are a few legitimate uses for credit, including a home mortgage. Please correct me if I'm wrong and DR doesn't believe in home mortgages, it's been a couple of years since I've read any of DR's books.

That said, I'm not advocating the regular use of credit cards and don't believe in carrying a balance on a credit card. I'm not encouraging ANYONE to incure credit card debt they are unable to pay. Yes, I do believe it's safer to use a credit card for online transactions, and pay it off before any interest accrues. I'm not arguing in favor of going into consumer debt as a financial plan, I'm talking about using a credit card as an occasional tool.

I will gladly bow out of this thread if I am not welcome. I was piggy-backing on this thread because I think DR does have some good ideas, but I am not an adherent to everything he says. I prefer to take financial advice from a number of different sources, rather than from just one source.

The reason I was asking about how others on this thread felt about FICO scores and the protections offered by credit cards vs. debit cards is because I was honestly interested. These are issues that I don't agree with DR about, and I wanted to know how it played out in other's everyday lives. I wanted to know if other people really were okay with the tradeoff of less credit use = lower FICO score = higher insurance rates.

I've seen a number of people say they don't agree with everything DR has to say- perhaps we need a new generic 'snowballing your debt' tribe.... hhhmmm...

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#143 of 585 Old 01-04-2008, 07:00 PM
 
HydeParkB's Avatar
 
Join Date: Nov 2003
Posts: 1,271
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I too use my credit card, and I'm not going to stop in order to be a 100% Dave Ramsey follower. I'm also not gazelle intense. I'm not stopping night school in order to work a part-time job.

We did however pay off our car last year, and our only debt is our mortgage. Credit cards are paid off every month. Honestly, I love looking at my cc statement to see how much money went where.

I think DR has some great guidelines, and I hope to get increase our retirement investing to the levels Dave recommends. I'd like to move to more of a cash/envelope system for some items. But if this topic is only for the hardcore, I'll step out too.

Bridget. Momma to DD (4), expecting DS - 9/09, wife to SAHD. Gardener, coffee addict, urban dweller.
HydeParkB is offline  
#144 of 585 Old 01-04-2008, 07:48 PM
 
Jadzia's Avatar
 
Join Date: Jun 2004
Location: Michigan
Posts: 1,366
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Dave Ramsey seems to think that anyone who has a credit card is in debt. I am sure this is the case for some people, but he seems to ignore the fact that there are many people like myself who use credit cards for their own convenience, paying off the balance in full and not carrying any balance on the cards. I put all of my purchases on credit cards, getting cash back or other points, and at the end of the month I pay the bill. I have never paid a dime to a credit card company, in fees, interest, or otherwise.

I also disagree with his contention that FICO is a "debt score" because I carry no debt except my mortgage but still have excellent credit. It is how you *manage* credit, not by how much debt you carry. Most of your FICO score is based on on-time payments.

I like to keep up on this thread because I have many savings goals and am interested in building wealth. I would be on DR's later baby steps: saving for retirement and my son's college (which we are working on simultaneously). I think Dave Ramsey has a lot of good things to say about spending your money wisely, avoiding debt, and building wealth, but I certainly do not agree with everything he says. (His investing advice is atrocious.) I do watch his show on Fox Business news and I like to take the good along with the bad. Personal finance is one of my hobbies and I like to read and watch as much as I can from a multitude of sources. The more I learn, the more I can separate the good advice from the bad.

Are we not allowed on this thread if we don't agree with everything DR says?

Mommy to DS Adrian 8/10/04 and DD Geneva 9/02/09
Jadzia is offline  
#145 of 585 Old 01-04-2008, 08:06 PM - Thread Starter
 
shanetedissac's Avatar
 
Join Date: Apr 2002
Location: Sandy Hook, CT
Posts: 800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Jadzia View Post

Are we not allowed on this thread if we don't agree with everything DR says?

This thread is not to debate DR theory. I have chosen to follow his plan how he has laid it out and am looking for support on this path.

We used to have everything on cc and then after 15 years they started to get balances that we were not paying off each month. We were then dipping in to our investments to pay them. We were more inclined to purchase something (sale, great deat, we NEEDED it) because it was so easy to put on the card and then pay off. Well one month we did not have the money to pay off. I have heard many times that you spend more when you use plastic (even debit card's can do this). When you use cash there is more connection to the money for me.

So, yes I am hardcord Dave Ramsey. I would like support in this and not a debate about it.

Be well,

Shane - Homeschooling mom to three boys (12, 1-, 8) and living the open life with my husband.

shanetedissac is offline  
#146 of 585 Old 01-04-2008, 09:26 PM
 
littleaugustbaby's Avatar
 
Join Date: Jun 2003
Location: Yes, we did!
Posts: 7,537
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by annethcz View Post
I'm assuming this comment is directed at me. I don't want to get rid of FICO, I'm realistic and know that my FICO score affects non-debt related financial matters, such as insurance rates. I differ with Dave Ramsey on that point.

As for singing the praises of using credit, I do believe there are a few legitimate uses for credit, including a home mortgage. Please correct me if I'm wrong and DR doesn't believe in home mortgages, it's been a couple of years since I've read any of DR's books.
You don't have to agree with everything DR says, or even follow his plan to a T to participate here, IMO. But the thread is a support thread for people who are following DR's plan, so when a bunch of people start coming in and talking about how they are "realistic" because they use FICO, then it doesn't really gel with the whole support thread thing. It would be similar going to the circ forum and saying that you can see how circ is bad, but you do support it sometimes. It wouldn't fly there.

Asking questions is good. But like the PP said, we're really not here to debate DR's theory. We're here to support each other because we've found something that works for us, and it's kind of hard, especially when someone comes in and says "What does Dave say about XYZ?" Only to have people jump in and say, "Well, this is what DR says, but I think he is wrong and I do it my own way..."

So by all means, join in and ask questions, or even share your successes and downfalls, but if there's stuff that you disagree with, maybe start a debate thread?

Edited to answer the mortgage question - DR advocates using mortgage companies who do underwriting, not companies who base mortgages off of FICO scores. He also pushes for 15 year mortgages (and aggressively paying them off). He advocates for "100% down" whenever possible, but obviously that would take years for some people.
littleaugustbaby is offline  
#147 of 585 Old 01-04-2008, 09:49 PM
 
MommyErin's Avatar
 
Join Date: Jul 2002
Location: Cincinnati, OH
Posts: 606
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by phathui5 View Post
My experience has been that the hold is a night's hotel cost. The last time we did it it was a $89 hold.
That isn't always the case, though. According to the US Bank Website:

Q: How do hotels determine how much to authorize?A: Hotels are allowed to request an authorization for an amount based on your length of stay, all applicable taxes, plus any additional expected dollar amount(s). Cruise lines and car rental agencies also follow this practice. Upon making your reservation, we suggest you ask for the total amount of the authorization.

So I would think, if you live check to check, an authorization could be big enough to cause real issues.
MommyErin is offline  
#148 of 585 Old 01-04-2008, 09:59 PM
 
MommyErin's Avatar
 
Join Date: Jul 2002
Location: Cincinnati, OH
Posts: 606
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by littleaugustbaby View Post

I guess I have to wonder why someone who does not want to get rid of FICO or credit card debt would participate in a thread for people trying to follow DR's plan and sing the praises of using credit, when the whole cornerstone of the program is to eliminate all debt, stop using credit, and stop worrying about a FICO score.
Well, I'm here to learn about what people do with Dave Ramsey's program and how it works in real life. I don't necessarily buy it (or not buy it) but I was hoping to glean some helpful information. Is this not an appropriate thread for that? Is it only for people who are hard-core DR followers? And, honestly, while DR is successful, is he truly the arbitor and end-all-be-all of all things financial? Maybe he is, I don't know but that's why I'm here. You know, to learn and question. Debate is part of that, IMHO.

Okay, I'm stepping out of the closet now ... "Hi, I'm Erin and I'm Jesuit Educated. Pay no attention to me as I question EVERYTHING!"
MommyErin is offline  
#149 of 585 Old 01-04-2008, 10:06 PM
 
Jadzia's Avatar
 
Join Date: Jun 2004
Location: Michigan
Posts: 1,366
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by shanetedissac View Post
This thread is not to debate DR theory. I have chosen to follow his plan how he has laid it out and am looking for support on this path.
Well as I was read it, no one had come on here to debate anything. Another poster mentioned using a credit card and she was forced to explain herself for having one and then it was questioned why she was even posting on the thread.

Doesn't seem very "supportive" to me.

Be well,

Mommy to DS Adrian 8/10/04 and DD Geneva 9/02/09
Jadzia is offline  
#150 of 585 Old 01-04-2008, 10:25 PM
 
littleaugustbaby's Avatar
 
Join Date: Jun 2003
Location: Yes, we did!
Posts: 7,537
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by MommyErin View Post
Well, I'm here to learn about what people do with Dave Ramsey's program and how it works in real life. I don't necessarily buy it (or not buy it) but I was hoping to glean some helpful information. Is this not an appropriate thread for that? Is it only for people who are hard-core DR followers? And, honestly, while DR is successful, is he truly the arbitor and end-all-be-all of all things financial? Maybe he is, I don't know but that's why I'm here. You know, to learn and question. Debate is part of that, IMHO.
I think that this should be a great place to learn - but again, it is a place for people following the program to support each other and help each other along. It's hard to do that when there are people debating it, yk? I agree that debate is a great tool for learning, but it is really hard for people to support each other on following a plan when you have people jumping in and saying that it is not realistic, or that they don't agree with it. That's not really healthy debate that helps further anyone's journey.
littleaugustbaby is offline  
Reply

Quick Reply
Message:
Drag and Drop File Upload
Drag files here to attach!
Upload Progress: 0
Options

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:

Log-in

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off