Dave Ramsey and Mary Hunt

Why is Dave Ramsey so passionate about getting people out of debt?

Anyone who has listened to his program more than a few weeks knows that most of the people calling in are in desperate straights, and have no clue about what to do or where to go. These people need to get out of debt as quickly as they can, or they will get discouraged and give up. Unless debt is seen by them as an evil think that is sucking their life energy away, then they have no hope of ever getting out of debt. They will just go back to their old debting ways. I think he has a point here. That is why you will never hear him recommend a credit card, because there is a large percentage of people who will tell themselves they will pay the balance off every month, but the first time a crises comes up or a want comes up that they will pay off soon anyway, they will put it on the card and let it ride a couple of months. Once this happens, it is like giving a person in AA a drink: off the wagon they go.

So, is there any way for him to know which person will be able to use that card or stretch out those payments for a little while longer and not get hooked again? No. There is no way to know that. So, he errs (if err there be) on the side of caution. It won't hurt the small minority of former debtors who would then pay off the balance each month to pay cash for things they could use a card for if they had one. It is better to be debt free than to take the chance.

And with all that said, I'm inclined to agree with Mary Hunt more when it comes to saving and investing while getting out of debt. She believes in the "pay yourself first" idea even while getting out of debt. Basically, save 10% until you have your emergency fund, which for her is a nice round figure of $10,000, then create what she calls a Freedom Account (which I will explain at another time), then invest it until you are debt free, all while paying down your debt.

But even there, I disagree slightly. I would use my other moneys to build the Freedom Account, and start investing my "pay yourself first" money as soon as my 3 to 6 month emergency fund (which for me and my frugal lifestyle isn't nearly $10,000). Then, when debt free, I recommend socking away as much as you can afford.

So, while you are correct when you detect Dave Ramsey influences, do not assume I am a Dave Ramsey clone. I read and find value in many many different books and points of view. I pick and choose what makes sense to me, just like everyone else does, and leave the rest.

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