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4 Bumps

Dave Ramsey...Does it really work? Please tell me your story.

My husband and I want to eliminate our debt in order to buy a house. We have around $12,000 in debt and not sure exactly how to tackle it and get rid of it as soon as possible.

 
GomezMami2908

Asked by GomezMami2908 at 11:11 PM on May. 19, 2011 in Money & Work

Level 27 (30,173 Credits)
This question is closed.
Answers (11)
  • I love Dave Ramsey - I think if you can commit to his way of thinking then yes it can work. It doesn't work if you're not committed to never borrowing again (except possibly to buy a house). Since we started following his plan, we've paid off $10,000 in debt and saved plenty of money. The best thing that happened was learning to live on a budget and actually feeling like we have money just b/c we know where all our money is going. To some he seems extreme but listen to him for awhile and you'll find he's only really extreme in extreme cases - he's got a big heart and actually wants to teach people how to live w/o financial worry. He's got a podcast if you can't listen to his radio show, the book the "total money makeover" is great and find a Financial Peace program if you can. It's worth the money if you can commit.
    Mom_2_cuties

    Answer by Mom_2_cuties at 11:19 PM on May. 19, 2011

  • Yes. 3 years ago we had that much in credit card debt. Today we have no credit card debt. We now are working on our car loan and personal loan. Both of those will be paid off by this fall a whole year early. Once that's gone we are going to get 6 months of pay in savings then we are going to pay of the house. If things go ass we plan the house will be paid off 15 years early. If not more.
    SAHMinIL2

    Answer by SAHMinIL2 at 11:20 PM on May. 19, 2011

  • My bff's family do it and swear by it. But I think it's too strict for me. Plus I wonder what happens to your credit score when you pay everything in cash?
    tnunley

    Answer by tnunley at 11:36 PM on May. 19, 2011

  • We took the Financial Peace course a little over a year ago. We haven't paid off much debt but that isn't because we aren't trying. The first thing Dave has you do is save $1000 for an emergency fund. Through out this past year we have saved it quite a few times and then dh would be out of work and we would need (and be so thankful that we had it). Work is nownsteady, we are building up the emergency fund again, and then will be moving on to the debt snowball. The course was definitely worth taking. It really helped to get dh and I on the same page and have the same goals where our money is concerned.
    JamieLK

    Answer by JamieLK at 11:38 PM on May. 19, 2011

  • We do a hybrid of Dave Ramsey and Gail van Oxlade's jar system for the rest of our expenses. Our debt, which is my car (10,000) and the rest of my husband's student loan (5,000) will be paid off by Sept. You just have to be serious about it.
    HollyBoBolly

    Answer by HollyBoBolly at 1:40 AM on May. 20, 2011

  • It works- but only if you actually do it. It's not a magic pill- but it is motivational and easy to understand. We paid off $20,000 in two years while cash flowing school. We're now debt free.

    You don't have to pay for any of his stuff. Go to his site- DaveRamsey.com and listen to the archives for free. Borrow his books (I recommend Total Money Makeover) from the Library. And join the Dave Ramsey Fans group on CM.

    Next month in the Dave Ramsey group we'll be giving away a lifelong membership to Dave's Financial Peace University class. So it's worth joining and trying to win.

    Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 5:37 PM on May. 20, 2011

  • There's a Dave Ramsey group on CM.
    meooma

    Answer by meooma at 3:46 PM on May. 20, 2011

  • Fat fingers on the phone...sorry for the typos
    SAHMinIL2

    Answer by SAHMinIL2 at 11:22 PM on May. 19, 2011

  • never heard of it before here's a bump and I'll have to look into this
    Christmaslver68

    Answer by Christmaslver68 at 9:31 AM on May. 20, 2011

  • Tnunley- If you listen to his radio program, it's clear that over time you do not have a credit score. Keep in mind your cedit score is truly a measure of your debt to income. Having a "good credit score" is really just a badge that states I have lots of credit cards, loans, etc, but those things are managed well against my income. Having a bad credit score is a badge saying that my debt to income ratio is to high, I don't have a fair balance to my debt and income. (i.e. you have to much debt). If you are making small purchase with cash- cars, furniture, appliances, etc it doesn't matter what your credit score is. If you have enough for a down payment on a house it doesn't matter what your credit score is. My car loan and personal loan would have been totally paid off today, but my husband and I have done other things with our money things we felt were needed and didn't want to wait. like a brand new bed: $3,000.
    SAHMinIL2

    Answer by SAHMinIL2 at 10:15 AM on May. 20, 2011