Vigeland: -You know, your big message to all of us, is that the only real way to have stability and to build wealth, is to get rid of debt. Although, you do make an exception for mortgages. Now a lot of us in personal finance talk about, say the differences between good debt and bad debt. Credit cards, bad. Student loans, good.
You want us all, the entire nation, to never use debt, that none of it is good. Why is there no such thing as good debt?
Ramsey: Well, it’s really simple. I’ve looked at people who’ve built wealth. By and large, they stay away from debt. They don’t discuss good debt. Only financial planners discuss good debt. And as a matter of fact, when the Forbes 400, the wealthiest 400 people in America, were surveyed, 75 percent of them said the best way to build wealth is get out of debt and stay out of debt.
Great interview. This is vintage Dave Ramsay. I wish his Financial Peace University was offered in every church. I wish his Total Money Makeover was required reading before graduation from high school. Most of all, I wish I’d come across his message years ago (or Howard Dayton of Crown Ministries, who preaches the same financial, avoid-debt-like-hell gospel), before I got myself in a heap of trouble with debt.
The fact is, most American Christians can’t and won’t tithe until they get a handle on their out-of-control spending and start eliminating their debt. It’s simply part of good stewardship. Helping educate people about how to get out of debt ought to be part of every church’s stewardship education program.
To quote Dave Ramsay’s most often cited Bible verse,
“The borrower is SLAVE to the lender” (Prov. 22:7).
As a nation, we’re learning (or we’re doomed to learn) that bitter lesson.
David Handy+
I started my portfolio with a Christian investment advisor, and he said the same thing. We’ve avoided all debt but our mortgage and the occasional small car loan for 15 years, and we have enough set aside now, even after the big downturn in the market, to pay off all our debt tomorrow if we wanted.
Debt is a trap.
My wife is debt-phobic (and very risk averse). The only debt we have is the monthly credit card debt (paid off every month). We owe nothing on our cars nor on our home.
We also tithe on our income. For me, it is a matter of whether money is our master or your servant.
The only time we owe money on cars or furniture or anything is when we get a zero percent loan (and we pay that off before it is due with certified mail, return receipt requested letter) and we can’t negotiate a lower price in lieu of taking the zero percent loan.
Interest eats up house hold finances and it restricts you ability to respond to a crisis or to an opportunity.
YBIC,
Phil Snyder
See folks, it CAN be done. Bravo, Jeffersonian and Phil!
That’s one more reason why I like you guys.
David Handy+
We had WAY too much debt – and no excuse for having it! We took the FPU course in a local home last Fall and have been ‘gazelle-intense’ for lo these many months. In that time we’ve paid off more than half our credit card debt AND built up savings for upcoming home repairs, car repairs, etc. Dave’s program is bonehead simple – but changed our lives, nevertheless. We hope to teach the course in our church next Fall, hoping others will benefit as we have.
Both Dave Ramsey and Crown Ministries are great. We live debt free and are so grateful to see our son and his family following the same track. We may not have all the things the neighbors have, but in a downturn like this one, we are awake all night worrying about money problems either. It is a blessing that gives back every every day. I too wish it was part of the core high school cirricula (along with the constitution and general classical civics).
OOOps, we are NOT awake all night due to money!
Whole-hearted agreement on the freedom that comes from avoiding debt. If you’re looking for a resource from Dave Ramsey that is more church-oriented, Lifechurch recently had him preach a series called “Life. Money. Hope.” that was very well done and is available for online viewing [url=http://www.lifechurch.tv/message-archive/watch/life-money-hope]here[/url] for free. Dave Ramsey also has youth resources available. Imagine the freedom our young people could have if they didn’t have to overcome the “I didn’t understand how it worked” pile of debt?
(PS I don’t work for Dave Ramsey, or Lifechurch, only sharing what I found helpful.)
There was ONE area I disagreed with him about. I was listening, me being out of work for seven months, and he was talking to a guy with debt.
His piece of gold advice: “Get a second job”.
Excuse me? Does he know how hard it is to even get ONE job right now, let alone a second job??? My “Dave Ramsey respect-o-meter” went down a few points right then.
Get a second job. Get real!
By the way, I had an interview today and THREE lined up for tomorrow!
Woo hoo!
Jim Elliott
Florida
test 🙂