Exjackly

Dave Ransey is a great personal finance guru for millions of individuals out there.  His Christian viewpoint, practical advice, and emphasis on personal responsibility and shunning of debt is a breath of fresh air in an environment where debt is king.

A voice in the financial desert is a good way to describe Dave.  He has been there before us.  He has made money, gone bankrupt and made money again.  Now, he earns his living by teaching people a way to get out of debt, stay there, and reach their financial goals.

What is the most refreshing about Dave Ramsey is also where he is wrong.  He is stubbornly against loans with very few exceptions.  Even though used right, there are loans that can benefit the consumer in the end.  Why is he against them?  He is against them because even with the good loans, most people will come out behind.

Let me repeat that. Even using good loans, most people come out behind.

When borrowing money, it only takes a minor mistake or two to lose money.  In most cases (car loans, payday loans, unsecured loans, etc.) the mistake is in taking out the loan in the first place.  For others, it is in getting the wrong terms, financing the wrong amount, or making a late payment (or several), or simply not being able to meet the obligations because of life changes.

Each one of us strives to be better than average.  Each one of us belives that we are better than most.  Anytime there is an exception to a rule, we want to believe we are the exception.  This is why people gamble, play games of chance, and take risks with their lives and money.  Ultimately, few of us will manage to always stay above that line.  Depending on the risks we take, when we fall below, it can be a minor irritation, very painful, or fatal.

Dave Ramsey may be wrong on saying to avoid all loans.  Some people can prove him wrong.  For 99% of us, avoiding debt completely is going to be the right way to go.

Dave Ramsey is wrong, but we will all be better often listening to him anyways.  Listen to Dave.