Credit isn't your enemy--it's a tool to be used, for good or bad. Using it for good requires understanding this fact first.
61 plus ones
Shared publicly•View activity
View 17 previous comments
- I cannot argue against your point in facts - most will not make a real change in their lives and will be out the money they paid for whatever Ramsey thing they bought. I just bought the book.
However, I can argue in intent. I do not think his intent is malicious, just like I do not think most diet book authors are out to rip people off. Just because few can make real hard changes in their lives, I do not think the creator or a program or book is out to rip people off.
A majority of people in the US are in debt. A majority are overweight. It is incredibly hard in this culture to correct either of those. But some do. I choose to believe the most people peddling solutions do so with some decent intent. There are clearly frauds out there on both fronts.
Listened to an interesting pod cast by Dean Dwyer (has a book called Make Shift Happen, but also has a free pod) where I think he made in incredibly insightful point on self improvement books/programs. The point was that many people who are successful at something really do not understand what made them successful at that. They think they do, but it is hard to really be objective.
I have pissed away money on things to improve my health or my finances, but I do not blame any of the creators. They just did not work for me at that time. Dave Ramsey's book worked for my wife and I . . . could have been the right time right place. But it worked. The south beach diet worked for us for weight loss and lifestyle change . . . but it might have been right place right time. Both were at times we were needing change.
In the end, it is up to each person to change. No book or speech will change anything without hard work and some kind of motivation.Dec 31, 2012
- Heh, 7 credit cards... You'd just be borrowing a thousands of dollars from 7 banks and you cannot pay them all off? Good grief. I only have two credit cards (one from Bank of America and one from Amazon) and while I almost did not carry any balance in my BofA credit card, I'm doing good paying off my Amazon credit card.Jan 1, 2013
- 7 credit cards is quite excessiveJan 1, 2013
- Perhaps but over the course of 25 years it's not that big of a deal. I have had 4 total and 3 still open. 1 I don't use often, I just leave it for legacy data to show as my oldest account. Every once in a while I'll run something through just to keep the account active.Jan 1, 2013
- "Credit" is merely a tool, but one that can be used irresponsibly and abused badly. The corporate world is a good case in point: companies like GM or GE have revolving lines of credit or float short-term paper on the corporate credit markets, if only because when you have to make payroll every two weeks but your accounts receivable take maybe six weeks to collect, you need to make payroll on short-term credit. Conversely, if you're a near-bankrupt company taking out credit to buy shiny new office furniture, you've pretty much just dug yourself into a deeper hole.
The difference between the two being: in the first example, a company is leveraging a known future cash income to pay an immediate and necessary expense. In the second, a company is leveraging future income (perhaps uncertain, or not even known) to pay for a discretionary expense.
And while some will say "Yes, but that's the corporate world..." leverage is leverage. When you buy on credit, you're leveraging your own future cash flow for an immediate expense. HOW it's used is what makes it good or bad (e.g. fixing a leaky roof on credit, knowing you have a steady job and free cash every paycheck = good use of credit. Buying a new phone on credit because yours is two years old and not the shiniest available = bad use of credit. And taking a $20 cash back when you make a credit card purchase = unbelievably execrable use of credit, as it's effectively "buying money with money at a 30% premium.")Jan 2, 2013
- Credit can often tell a lender how shittily you will spend the money they hope you will return to them.Jan 2, 2013