Comments on: Dave Ramsey Post Rebuttal and LinkStuff for June 29

By: Mr. Not the Jet Set

Mr. Not the Jet Set — Mon, 29 Jun 2009 10:14:28 +0000

Glad you enjoyed the rebuttal.

Joe – That’s a “debt-free” DR fanboy to you

cheers!

By: WhereDoesAllMyMoneyGo.com

WhereDoesAllMyMoneyGo.com — Sat, 27 Jun 2009 14:47:36 +0000

Thanks for the link – great blogging on the patio weather eh?

By: MDJ

MDJ — Sat, 27 Jun 2009 12:57:52 +0000

Thanks for the mention guys and congrats on the globe nomination!

By: Four Pillars

Four Pillars — Fri, 26 Jun 2009 18:52:02 +0000

Thanks Ram.

Joe – I completely agree. Look forward to reading your post.

By: JoeTaxpayer

JoeTaxpayer — Fri, 26 Jun 2009 14:50:58 +0000

NTJS is in the category of DR fanboy, if you ask me.
You object to Dave’s snowball method (as do I) but a better rebuttal at least acknowledges its flaws. One can look at the two methods, side by side, and quantify the net loss using his method. Someone once threw a set of numbers at me, 4 debts at different rates, and the combination of low total ($12K) and not a wide range of rates (6-12%) showed that over the proposed two year payback the method difference was a couple hundred dollars, if I recall. So, if the mental benefit is worth that sum, fine. But don’t tell me to advise paying a 4% student loan off first for the fact that it’s $12,000 when I have a Visa card with $15,000 of 24% debt. That’s where you and I can show a large difference. Note, I’ve been working on a post giving these examples, will appear in next few weeks, I’ll link back to yours.

A matched 401(k) deposit should never be lost. Regardless of the other debt. I can show, (and discuss in my draft copy) that even at 24% interest, one should still use the 401(k) deposit to the match.

The problem with any advice offered not one on one is that there’s always a situation that provides a contradiction. Is Dave’s advice better than doing nothing? Of course. Is it “one size fits all”? Yes. That’s where the advice fails.

By: Canadian Capitalist

Canadian Capitalist — Fri, 26 Jun 2009 12:56:40 +0000

Thanks for the mention and congratulations on the Globe mention today.