Dave Ramsey on Debt Negotiation & Debt Settlement – Wrong Again?

May 15, 2010 – 4:15 pm

In a recent post we took a look at Dave Ramsey’s view of credit cards as I debunked his “debt snowball” strategy as well as his quite laughable view that “Responsible use of a credit card does not exist… There is no positive side to credit card use.” (Yes, Dave Ramsey actually said that and stands by that statement believe it or not).

Leaving those two issues aside for this post there is one other thing about Dave Ramsey’s advice that “sticks in my craw” maybe even more than his ridiculous view of credit cards and that is his advice when it comes to debt negotiation and debt settlement (side note: I have no idea what “craw” really means as I have never used that expression before but it just sounds funny so why not – for all of you know-it-all’s out there please do not attempt to describe for everyone what exactly you think a “craw” is as I would rather not know – definitely a Google search that probably falls in the “don’t even go there” category).

All talk of “craws” aside my major issue with Dave Ramsey is that his advice is marketed as being Christian financial advice and yet in the area of debt negotiation and debt settlement Dave Ramsey gets this one so wrong according to Biblical principles that it should bring about some cause for concern.

Dave Ramsey: “Reduce debt by directly negotiating with your lenders.”

If you have ever listened to Ramsey’s TV show on the FOX Business Channel or his call in radio program then you have no doubt heard him counsel many many people to avoid debt consolidation companies, debt negotiation companies, debt settlement companies, etc. (which for the most part is actually really sma

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Tags: Dave Ramsey, Debt

Prepaid Credit Cards: Best Way To Limit Credit Card Spending

May 15, 2010 – 1:27 pm

Providing someone rights to spend without any control is like opening up a chocolate store for kids. Prepaid credit cards are meant to resolve this issue, instead of make your credit history adverse with unwanted expenses, better to have prepaid card.

As it names suggest, you can only spend money what is in your account. You spend your money which helps to save you to fall in debts. Prepaid credit cards never encourage the user to go beyond the limit, because if he/she does so, credit card will run out of credit. This credit card supports you to improve your credit score as you pay on the spot with crossing your limit.

These cards has no additional fee for anything, because you pay at the same time which eliminate the chances of late payments and you can get the cash from nearest ATM or POS without paying any charges as it is your money.

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Tags: Card, Credit Card, Credit Cards, Prepaid Credit Cards

A Surprising Loss for US Banks

May 15, 2010 – 1:59 am

In an article titled “Vote to Limit Debit Card Fees Is Surprising Loss for Banks”, Binyamin Appelbaum writes about yesterday’s Senate vote that passed (on a 64-33 vote_ an amendment offered by Sen. Dick Durban to limit debit card fees paid by merchants.

Tags: Banks, Surprising Loss

Credit Card Debt – Side Effects And Solutions to become Debt Free!

May 13, 2010 – 11:44 pm

Difficulty in starting a business: Having a credit card debt is causing problems for a person when he approached the Bank for loans to start a new business. Any bank would not sanction the loan amount required and therefore limits the amount of people having experienced the bad credit history.

You lose jobs: a part of the financing of established companies do not allow employees bad credit history, so you lose your job.

Difficulty in obtaining approval of the apartment owners. They will check your credit history before signing a contract. Read full article

Tags: Card Debt, Credit Card, Credit Card Debt, Debt

Adjustable Rate Mortgage

May 11, 2010 – 11:00 am

Some banks and financial institutions prefer offering Adjustable Rate Mortgages (ARM) for their home loans. These variable rates mean that, within certain limits, your monthly payment and the interest amount can change from month to month as you pay on the loan. An ARM uses any one of a number of different indexes to determine the increase or decrease in your monthly interest rate. The particular index used must be established and disclosed to the borrower at the time the loan is made and cannot be changed subsequently.

Some of the most popular of these ARM indexes include the Constant Maturity Treasury (CMT), Treasury Bill (T-Bill), 12-Month Treasury Average (MTA or MAT), Certificate of Deposit Index (CODI), 11th District Cost of Funds Index (COFI), Cost of Savings Index (COSI), London Inter Bank Offering Rates (LIBOR), Certificates of Deposit (CD) Indexes, Bank Prime Loan (Prime Rate), and the National Average Contract Mortgage Rate.

In order to prevent extreme fluctuations in your interest rates and payments, these indexes cap the margins for variation to a set percentage. Read full article

Tags: Adjustable Rate, Adjustable Rate Mortgage, Mortgage, Rate Mortgage