[...] and the borrower–not a good relationship to have with a family member or friend.  Like Dave Ramsey says, “Thanksgiving dinner just doesn’t taste the [...]

To sum this all up, I guess if you feel the plan works well for you, then go for it. “different strokes, for different folks.” However, although I agree with this author regarding being careful taking advice from certain sources, Dave said it right when he said, “Dont take advice from broke people! Now I am not saying this author is broke, but I would rather take advice from a proven millionaire and financial genious, then somebody that has a little extra time to post this….

See, it goes to show how everyone’s circumstances are different. My wife and I got into a real hole after she had lost her job and was pregnant with our son. She was out of work for nearly a year (people aren’t eager to hire a pregnant woman). Our finances were devasted. We racked up $45k in debt (all consumer debt) — about $30k of that in credit cards. We were barely getting by.

When she finally returned to work, our debt obligation was so high, we barely had enough to cover costs. I sold a bunch of stuff and got a $1000 emergency fund — which came in handy, because I soon needed to do car repairs, then later I owed taxes.

We currently only have $1500 in saving, which feels good. For us to save a years expenses would take us a 3 years! I’m not going to wait that long to get out of debt.

In the last year, since we started paying down debt (and cutting up our cards), we’ve paid of over $11k in debt — about 25% of our peak balance. We’ve paid of one medical bill and one credit card completely and have not incurred any additional debt.

I think Ramsey helped a lot with giving some practical advice and motivation.

My goal is to have both my cars paid off in the next year — which would, alone, reduce our monthly obligations by a minimum of $420/mo.

I definitely disagree with Ramsey about a few things. I will keep a credit card when our finances are better. I do want to keep a good FICO. I also think some debt is ok (mortgage and education).

I’m surprised that almost everyone here seems ready to cut up his credit cards; I think Ramsey’s take on credit cards is illogical. Calling everyone who’s using a credit card “stupid,” is stupid. Sure, people with $30k cc debt and those who feel “out of control” around them need to cut up their cards, but people who pay off the balance every month can obviously handle them. I understand that it is possible to get by without credit and a good FICO score, but why make life more difficult than it has to be?! After all, even with the best intentions of living debt-free forever, there may come a time a loan is necessary.

However, pointing out shortcomings in Ramsey’s approach does not mean that I don’t appreciate the man. Ramsey’s real strength is not the baby steps or their exact order; his strength is the enthusiastic support he provides to people hopelessly mired in debt. He acknowledges their struggle, gives them a “community,” and even provides a celebration if they succeed (debt-free scream). That is what draws people to his show. His compassion is quite apparent, and I believe he does change lives. Support communities for people who embrace debt-free living and frugality have always existed, and they are important. I was once inspired by the book “Your Money or Your Life” (by Robin and Dominguez), but I have never seen a champion of debt-free living like Dave Ramsey. In that respect he’s my kindred spirit, and I am thrilled that he is making this concept cool. He helps changing the attitude toward debt in this country, and that is definitely worth something!

[...] Dave Ramsey, the popular radio and television talk show host, advocates putting aside 15% of your income towards retirement. Using our last example, that would be $7,500 a year on a $50,000 income, or $625 a month. Dropping $625 a month across your 401(k) and maybe a Roth IRA seems like a good idea, but it will be hard to pull off if you have an over-sized mortgage, credit card debt, or a couple car loans. That’s why Ramsey advises listeners to get out of debt and save a cash emergency fund first. [...]

[...] is represented by $1,000 in a savings account.  This first $1,000 in savings is the first of seven financial baby steps recommended by Ramsey, but over the years of putting his plan in action we’ve found this [...]

[...] have been a member of the Dave Ramsey Total Money Makeover forums for over two years now, and in that time I’ve made several [...]