Dave Ramsey

[eleighj]

Interesting thread.

I took a look at Ramsey Solutions, formerly the Lampo Group, with the TN Secretary of State’s website and it is a one person show. I am making the presumption that that person is Dave. His marketing plan is very simple, he markets to the Christian Sector, all races and probably all denominations. His home base of operations is Williamson County, TN, it is a conservative Christian area. Is what it is!

As for Ramsey Solutions personnel practices, TN is an “at will state”. In other words, they can pretty much hire or terminate you for any reason, absence things like sexual harassment or threats to harm you. Most labor attorneys I have known will tell you there is very little you can do.

As for Chris Hogan interesting comments in the article. It does not take long to see that he brings a lot of $$$ to the company. He brings a bestselling book that rehashes the baby steps, and his Facebook page “Hogan’s Millionaires” has over 139,000 members all trying to follow the seven baby steps and become millionaires(?). I imagine his ex-wife is getting her piece of the action on that deal and the book royalties. FYI, I took a look at her website and she is very guarded about her divorce. She is an attorney; she knows how to play the game.

For full disclosure, 20 years ago the Methodist Church that we attended at the time asked me to proctor his Financial Peace University course. I had the class focus on the seven baby steps and left the few religious aspects that were in the materials to each individual to study on their own if they wished.

[ApatheticNoMore]

As for Ramsey Solutions personnel practices, TN is an “at will state”. In other words, they can pretty much hire or terminate you for any reason, absence things like sexual harassment or threats to harm you. Most labor attorneys I have known will tell you there is very little you can do.

All states are mostly at will, however regardless you can not fire based on race, religion, sex etc.. And that's Federal law. This is skirting very close to that it seems to me, but I'm not a lawyer.

[Accrual World]

I think Ramsey's advice is great for his target audience - people who are just starting out, made mistakes with debt, and need rules and boundaries set for them.

His advice beyond that is pretty terrible. He's religiously against credit cards and really any forms of debt. I can't tell you how many times I've had to explained that you should almost never use a debit card to those that preach his gospel. So long as you don't carry a balance, credit cards are generally the optimal way to pay for things, with cashback rewards, sign up bonuses, and the fact that credit card companies will work harder to resolve any fraud or theft issues because it's their money taken, not yours.

[eleighj]

I think Ramsey's advice is great for his target audience - people who are just starting out, made mistakes with debt, and need rules and boundaries set for them.

His advice beyond that is pretty terrible. He's religiously against credit cards and really any forms of debt. I can't tell you how many times I've had to explained that you should almost never use a debit card to those that preach his gospel. So long as you don't carry a balance, credit cards are generally the optimal way to pay for things, with cashback rewards, sign up bonuses, and the fact that credit card companies will work harder to resolve any fraud or theft issues because it's their money taken, not yours.

Well said. Debit cards are covered by the Electronic Funds Transfer Act and credit cards are covered by the Fair Credit Reporting Act. Two very different animals.

[ToomuchStuff]

The ONE thing I wish Dave would actually say, is, who does he use for processing?
I know of no electronic payments company, that handles just debit cards, which are all he accepts.

[Tybee]

I think Ramsey's advice is great for his target audience - people who are just starting out, made mistakes with debt, and need rules and boundaries set for them.

His advice beyond that is pretty terrible. He's religiously against credit cards and really any forms of debt. I can't tell you how many times I've had to explained that you should almost never use a debit card to those that preach his gospel. So long as you don't carry a balance, credit cards are generally the optimal way to pay for things, with cashback rewards, sign up bonuses, and the fact that credit card companies will work harder to resolve any fraud or theft issues because it's their money taken, not yours.

But he is talking to people who have problems with credit cards, running up debt they cannot afford to pay back. So I think that on the whole, the danger of using the credit card is for those people far greater than the benefits of using the card. So I agree with him there.

[rosarugosa]

But he is talking to people who have problems with credit cards, running up debt they cannot afford to pay back. So I think that on the whole, the danger of using the credit card is for those people far greater than the benefits of using the card. So I agree with him there.

JD Roth from Get Rich Slowly (who I think is terrific BTW) makes an analogy that credit cards are like the chainsaws of personal finance. They are useful tools in capable hands, with significant potential for disaster in less capable hands.

[catherine]

So long as you don't carry a balance, credit cards are generally the optimal way to pay for things, with cashback rewards, sign up bonuses, and the fact that credit card companies will work harder to resolve any fraud or theft issues because it's their money taken, not yours.

But he is talking to people who have problems with credit cards, running up debt they cannot afford to pay back. So I think that on the whole, the danger of using the credit card is for those people far greater than the benefits of using the card. So I agree with him there.

I agree with Tybee... saying certain people they SHOULD use a credit card is like telling an alcohol they SHOULD drink because it's good for your heart. I also think cash-back rewards are a minor fringe benefit, but not enough to go into debt, especially if you are not the type to pay it back every month, because you'll be spending a whole lot more in interest than getting back in rewards. IMHO, the best benefit of doing credit card transactions is that it puts control in your hands if you wind up with a purchase dispute.