Dealing with the DEBT MYTH - Dave Ramsey

Blessings beloved,

     I'm a big fan of Dave Ramsey. One of the most difficult aspects of the Financial Peace strategy that his company teaches is that Debt is unnecessary. I have been a short time listener of Dave Ramsey's various shows and Youtube videos. I think I got into his materials about five years ago as I transitioned from being a Real Estate agent into becoming a Financial Services provider.....As a side note I'm frequently asked why did I leave the Real Estate field when I was having a growing level of success. The shortest answer is I dislike shopping and working with buyers is similar to shopping. We're in a buyers market (in Hampton Roads Virginia) and I admitted to myself that I didn't want to work with the rising tide of foreclosures as a main source of sellers...... Back to Dave Ramsey......

     While taking Financial Peace University with the "Wifey'-Fo'-Lifey" I watched our classes members struggle with the concept that Debt is unnecessary. As I meet with client's now and share the same view on Debt I get a lot of confusion and nonacceptance when I share that's it's better to show your children how to stay out of debt and guide them away from debt rather than to help them "Build their Credit Score". Here's what Dave Ramsey says about DEBT:

Dave Ramsey (Podcast  10/23/2012) times from 01:56:01  to  01:56:36.

Debt is dumb – Dave Ramsey tells you why: “Building your credit is the biggest myth, the biggest lie that has been sold to the last two generations.  And so many people bought it that they are deeply in debt; it’s affected their marriage, it’s affected their future, it’s affected their ability to feed themselves – to take care of themselves at retirement, it’s affected their ability to change their family tree. It’s affected everything.  Because we believe that you have to go into debt, so we have the opportunity later to go further into debt. That’s the build your credit myth."

     The dirty little secret is that one can get a job and get an apartment, car loan, or a mortgage with a zero (0) credit score and with a good credit score. It's only when one has a bad credit score that things become extremely difficult. If one has a zero credit score that indicates that they do not use credit...... and banks will jump to give them a loan. Apartments that require a credit check may ask for a bigger deposit or one may need to work with a private owner if one has a zero credit score. Believe it or not people do buy houses and vehicles with zero credit scores and/or by purchasing the car or home with cash.

      Although this approach sounds crazy it works. To be practical I advise this: Create an emergency fund of a minimum of three months of your expenses. Don't use your credit cards for emergencies or fake emergencies (Christmas gifts and Birthday parties are not emergencies). If you have bills and debts pay them on-time or early. If you can't afford to buy something outright then you truly can't afford it. If you can't afford to buy a vehicle with a three year loan you can't afford the vehicle (you can afford the monthly payments...but you truly can't afford the vehicle). Create a "Gonna' Happen' savings account to be financial prepared for car repairs, Christmas gifts, and other things that are gonna' happen. Follow this path and the funny thing is your credit score will rise......but you won't need their stinking credit score or credit card !

    As an interesting side note I shared this path with a lady who described herself as a Christian first and anything else second. I shared with her that the 'canonized' Holy Bible says (Proverbs 22:7) "The borrower is slave to the lender." and  (Psalm 37:21, Ecclesiastes 5:4) "We are required to pay back what we borrowed." and (Deuteronomy 28:12) “The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.” Her interpretation of these passages, after she researched them, led her to believe that her habit and reliance on the use of credit was against the will of God. I'm hoping that she remains of out debt. Time will tell......

     If you or anyone you know is struggling with Debt - Contact me and I'll do my best to assist them. Teach you children to save and invest 15 cent out of every dollar they receive and later on they will not need credit. Easy advice, hard to follow. I know personally, as I'm walking my way out of debt as well. I invite you to walk with me.

      Dave Ramsey has a great website and the website is http://www.daveramsey.com . His company was giving away an audio MP3 file for free for a limited time period (that time may have passed by the time of this posting). Access that file by clicking here while the promotional lasts. I also advise anyone to attend his company's Financial Peace University.... It's worth every second. Uhuru !
Seko
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Seko Varner is from Positive Vibes Financial, a World Financial Group team of financial services agents. They specialize in debt reduction, investments, and insurances. Seko is in high demand as a special events DJ and owns an event marketing service. Seko has diverse background in business, counseling and education. He has been real estate agent, a school counselor, a teacher, and an Intensive In-Home Counselor. Seko is active with numerous Youth Mentorship programs and has a background in radio and television. Visit www.HappilyEverAfter.Be or call 757-248-3820 for more details.