I Don’t Want To Close My Credit Cards
HTML-код
- Опубликовано: 13 сен 2024
- 💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...
If you wanna keep your credit cards open, then don't call an anti-credit radio/TV show.
you still dont get it, the caller wanna brag and this show is a great platform to do it...
@@mbank3832 So true
Exactly
I have no debt
One credit card for online and travel that i pay off every two weeks.
Over half a million in retirement
And oh my goodness 😮 a credit score something around 820ish
There is no need to be absolutist on these things as long as you dont do stupid things...like getting back in debt, having a car payment, living beyond your means
Totally agree. Nothing wrong with having a couple of credit cards, especially for the things you mentioned. As long as the person pays them off, as you do, and doesn't go crazy. All of our credit cards are paid off, and our credit score is about like yours. Will not be cutting up any of them. And I believe a good credit score is important.
being slave to the lender steals your joy and puts on stress like you would not believe. I wish someone had taught me this stuff when I was a teenager.
I have a $214/mo Mortgage and a $100K/yr Pension
The Bank Auto-pays it.
Stress?
@aolvaar8792 Doesn't matter. If the furnace dies, it would be nice to not have the debt. Why not pay it off? You must love debt!! We paid ours off and it feels great!!
@@jimroscovius
The OP was talking about stress like you would not believe.
Absolutely no stress at $214/mo and
a $100K/yr pension and Free lifetime family healthcare. (And my City does not have property tax).
The flip side: I pay off the house and then the furnace dies, Now I would have Debt that is unacceptable (Dave says a Mortgage is.)
I have been interviewing for a job, 4-6 months would pay off the house.
Been hard, no one wants to hire an old man (late 60's), especially one with a pension.
Also, this year, I put my oldest (18) on the Title, the youngest of four is 8.
I'm paying off someone else's house,
which my life insurance should.
@@aolvaar8792 Must be nice. I don't have any of that and am still stress-free. No pension, I pay property taxes, etc.
@@aolvaar8792 4 kids, 18 down to eight, in your late 60’s? So you were roughly 50 when you started your family and roughly 60 when the last one arrived. God bless you. I’m 63 and when my 7 yo grandson visits, I can’t wait for him to go home. I love him but he wears me out.
I've been having this conversation with a friend for over 10 years. We have the same job, with the same company, and the same income. He wants to buy his own home...I've owned mine free and clear for a couple decades, he wants a second car for his wife and himself...I've owned my two vehicles free and clear for years, ever since I wrote a check for them each, he struggles with "short checks" when bill-paying time comes along...I sometimes forget when payday is, or was last week, he maintains credit cards and personal loans "to build his credit score"....I have no clue or care what my credit score is. But, what do I know? I'm just one of those debt-free weirdos that owns their own stuff and owes nobody anything! LOL!!!
How sad is it that being in debt is SO normal that you can use the words “I only have $20,000 in debt and it’s totally manageable.” Wowzers.
Realistally though, he was in more than $20,000 in debt. He had rent to pay, which is worse than a house payment. I never really liked the idea of paying rent because you aren't paying off anything. You constantly have that payment no matter what, and it can go up from year to year. I realize it's hard to qualify for a home loan now. But the point is, he is in more debt than what he thinks. I count rent as debt because it never goes away until you stop renting.
@@joshstieneker4615 Yep renting is very much debt over a longer period of time.
@joshstieneker4615 -
I loathe when people try to compare renting to mortgage payments “apples to apples”. It isn’t the same thing. Why do people not factor in interest, property taxes, maintenance costs, or time investment when calculating the cost of home-ownership? Renting OFTEN makes more sense than a mortgage payment.
I am 65, but just old enough to remember the first credit cards that were regularly used (store cards, gas cards, BankAmericard, etc). We were raised by a generation that lived the Ramsey way, yet a completely 'new' concept for the younger generations. Thank you Dave for educating the population. I just hope they are listening.
hmmmm, interesting. I think the concept of no credit card/no credit score is crazy, but it's true, my parents lived exactly the way Ramsey solutions preach.
However, I still have credit cards and a great credit score and no debt because as I make a purchase on a credit card, I send a payment to the company within 5 hours.
@@user-dq4ri6fi7bEven back people didn’t have credit cards there were people who bought items on credit. Think about the old general store. Plus I remember things like layaway and people making payments on big items like furniture when I was a kid.
Credit score is not based on debt, it's based on your paying habits and the time/ability you had to screw up.
I have never carried any debt from one month to the next (all cards in autopay) and my score after 4 years in the US across all 3 bureaus is ~800.
Autopay never pays the full balance, you should go in a few times a month and just manually pay off the full balance. I tried autopay years ago and it would never pay the full balance off, even when I set it to.
@@mplslawnguy3389 That sounds strange, I have never had any issue or carried balance. But I will pay attention just in case, thank you!
When you set up auto pay it usually pays the statement balance. The statement balance is what you spent in the previous month. You always pay a month behind on credit cards. Either way, you dont pay interest if you pay the statement balance in full by the due date. You can always pay the current balance before the due date and then your balance will be $0 for the statement cycle
Cut up ours around 26 years ago. Debt free including home and vehicles.
Great if that works for you. If you don't have the financial discipline to stay within the guard rails why try to ruin it for everyone else?
@@stevenporter863 Why make others rich?
Damnnnn Rachel answered that question so well. I can tell the caller has been following other Tik Tak influencers 😅😂😅😂😅😂
Those damn Tik Tak influencers!!!
Oh good grief, this guy is not abusing credit cards, he is not underwater in debt, he seems to have a good handle on things.
If he had a good handle on things he would leave the USA as fast as possible.
@@amireallythatgrumpy6508 What are you babbling about?
@@amireallythatgrumpy6508 word
@@amireallythatgrumpy6508where should he go?
If he “had a good handle on it” he wouldn’t shrub at $20,000 in medical debt. Being in debt is LITERALLY the term used when you’re underwater!
People buy a house thinking it will be cheaper than rent. Unfortunately, there is upkeep, repairs, etc. Owning a house is nice, but sometimes, I wish I had rent and let a landlord deal with all the issues I have to worry about. I am more tied to my location because of a mortgage than I am with rent. If I wanted to move to a new city or country, I'd either have to sell my house or rent it, both are hassles.
In the long run it WILL be cheaper than rent. In the short term it will not.
Those are not mutually exclusive. It is both an investment AND a liability.@@supershrpy
Except your money is in the wind, paying someone’s mortgage with nothin to show ..there is no real privacy as they have access whenever they want ..they can raise rent and give a two week notice .. the stress is a high price
He pays off his cards every month. So there is not problem with it. You pay if it, there is no problems.
A good credit score, does get you a lower interest rate. And it just makes your life easier. Manual underwriting takes a while to go through, and you cannot shop around looking for better rates.
DRAMA lol
Pay cash and you don't need better rates. Now you claim to pay off each month, why would you need better rates since you don't use them ?
@@jazzad 99.99% of people don't have money to buy a house in all cash.
Yeah no one needs over half a dozen credit cards, get ONE card with a $10-15k limit. Pay it off every month. The first month you don't pay it off you don't get to use it for a few months.
@@jimmymcgill6778 It's crazy how people don't seem to understand this.
I follow and completely try to live by the Ramsey plan. That being said I think every personality on the show, George included, teaches it pretty well. I also notice that George tends to try to “fill Dave’s shoes,” when Dave isn’t on. He tends to adopt a more accusatory, entitled tone in his voice and tends to show people less respect. Dave can get pretty upfront and personal, but he’s been there, done that, bought the T-shirt and came back. George is both too young and too inexperienced to speak to people the way Dave does in my opinion. He’s a great guy, but I think he should focus on being a little more personable until he earns the stripes Dave has.
NEVER use a Debit Cart except at the ATM. Don't give ANYBODY your debit card numbers. They can drain your account.
Possibly one of the best calls and responses from rachel ive heard her handle
Regarding the credit score, it seems to me you either need a high credit score or no credit score at all (100% debt free). Anything in between, especially in the mid to lower end, will cost you dearly. The Ramsey goal is an indeterminable credit score because you have no debt and that is fantastic but on the way there don't screw up.
Thing's are changing. I'm responsible with money set aside for emergencies etc and never used cc's. Always saved for what I wanted and managed pretty well. I decided to move to a different location and was DENIED leasing several apartments bc of NO CREDIT although I met all other requirements. These days landlords don't want a higher security deposit bc I was prepared to pay it, they want to see a fico score. Unless you're already a home owner you definitely need a fico score just to keep a roof over your head period
@@asiaanderson5556 agreed I was trying to find an apartment for my father in law near the dialysis place. He has no credit and only SS income so we were going to pay for everything. But since we weren’t living there they wouldn’t use my income. I even tried to just pay for 6 months rent at a time. Finally found an employee who cared enough to listen and fudged some paperwork and got him a place.
Incorrect. Tell them you'll pay six months or a year up front and they'll take you. As long as you make that payment immediately
By the way, credit scores don't exist in civilised countries@@asiaanderson5556
@@asiaanderson5556
I recently noticed that we have “credit friendly” rental apartments where I live.
The very nice apartments with the garages,gated,etc. and built like condos that do credit checks with large deposit won’t turn down anyone working for a very large and Fortune 500 company like where I worked though.
So people build their credit score either way.
@@asiaanderson5556that's been common for a long time.
Quit fighting the system, have 3 to 5 credit cards, pay off every month, easily get a lower cost mortgage, faster and simpler transaction than cash at checkouts. A number of businesses in Southern California will not take cash. I heard one of the Dave Ramsey employees say they use “business DEBIT cards”. Your maximum financial liability on a properly used credit card is $50.00 by law. Your financial liability on a debit card is whatever the Bank chooses it to be. If you don’t believe me ask your banker.
True!
Exactly. They also forget, unless you're already a home owner landlords want to see a fico score period. They use to charge a higher security deposit for no credit but that's changing. I was DENIED leasing several apartments bc of this recently although I met all other requirements. I now use a cc to keep a high fico score to keep a roof over my head. Smh Dave and his staff are out of touch with reality
Again, because you're wrong a third time, you a) should not rent an apartment if you're human and b) if you must rent an apartment, pay 6-12 months rent up front@@asiaanderson5556
Amen
Just get ONE card with maybe $10-15k limit pay it off every month. Your credit score will be fine, I'm guessing 820 is good enough😊
The *big* mistake Ramsey tries to get you to accept is that CCs are debt. No, they are expenses for those that pay them off every month. You don't pay your electric bill every day, you pay it monthly. So your Netflix and other regular monthly EXPENSES that come in on the CC are routine payments. Get the cash back, use a CC and pay it off every month. For those that can't pay it off - yes, it becomes a debt and you should cut them up like Ramsey advises.
Infallible logic.
100% This^
Facts
You are missing the human element. People make illogical decisions. People that struggle with debit also struggle with making logical decisions when it comes to safe financial decisions. And credit card companies know the psychology of getting people paying with credit and spending more money than they have. This guy that called needs to get rid of the cards because he's not controlled enough to have them, like the majority of people.
@@corvairlover According to Yahoo, 44% pay it off every month. Ramsey and his one-size-fits-all is simply wrong. He should at least acknowledge those with discipline - he doesn't, and that's where he fails. And I already said it - cut them up if you can't pay them off every month. For the rest of us, they are a nice money management tool.
2:43 - About time! She just asked a direct question. This guy is all over the place, and the male host is clearly annoyed with him. I would suggest closing all but one or two of the highest limit cards AFTER getting approved for the mortgage. Long term credit accounts and low credit utilization also factors into the credit score.
Advice should be given based on the system we reside in, not the one you wish existed.
Amen!! Yes after the mortgage is approved and closed, then go ahead and close the cards. But doing so now will crush your changes if getting a mortgage. Cmon George and Rachel, DO BETTER!!
@@davidloughrey4841George and Rachel are illiterate when it comes to credit cards. All stemming from ramsey and their failure to handle credit responsibly.
The male host is all over the place and did not understand the caller's question, because he wouldn't listen.
Love Ramsey listen everyday, but please don’t potentially napalm your financial future by *intentionally lowering your credit score
This advice applies well to people in real trouble financially but with someone that earns well, doesnt really have any debt and seems to have their head screwed on it seems to not make as much sense. Unfortunately manual underwriting, which they suggest is the alternative, doesnt apply to all types of purchasing, is very time consuming and limits what you can borrow, it also often results in a higher interest rate.
There’s some strange gymnastics that goes on in our heads. “But what if my business requires an expensive item?”
The idea that you’d be cool with taking out a loan but not cool with buying it outright is concerning. Like, it’s just a tool, it’s not worth $100k of my money, but I can get on board with a $120k loan.”
If the company doesn't have the liquid capital (which most don't) and that tool/machine will produce much more than the interest rate, it is mathematically logical.
The loan would enable you to have more "cash flow." Therefore, you cannot or shouldn't always buy something with your own cash. You can't operate a successful business without healthy cash flow.
The opportunity cost here could be astronomical in some cases.
Dear Dave, I use my debit card locally because my bank pays me interest if I use it 12 times a month; however' we just made a trip from texas to Arizona and my debit card was declined (with PLENTY of money in the bank) at a gas pump and I luckily had credits cards (that I pay off and NEVER carry a balance) that made me think about your "advice" about no credit cards! (we're not ALL credit idiots!)
Your debt card was declined because you didn't notify the bank that you would be traveling outside of your 'usual' area. By using your card outside your usual stomping ground, the card is declined as a part of your fraud protection. It looks to the bank like someone other than you got a hold of your card. Just notify the bank that you will be traveling and that solves all that. I can do it in my online banking before I leave on a trip and I have no trouble using my card out of state.
Edited to add: This isn't just with debit cards. Back when I had credit cards, I had a credit card that did this to me. My pay-at-the-pump was declined because I was out of state and didn't notify them that I was traveling.
thx@@AllynHin
@@AllynHinyou’re right.i went to las vegas for a trip and my card was declined.they called me up asking if I’m at Vegas.i’m from Florida.it’s because it’s the fraud protection that your cards no matter if it’s debit or credit card,can get declined if you’re traveling.
Sean your awesome keep your credit cards
It’s very annoying when you ask a caller questions and don’t let them finish their answer by interrupting them. The only one who can do that is Dave!
Well when this clown is all over the place….and incoherent, he needed a smack down.
He’s rambling though so they need him to cut to the chase
@@lexalee5795 Agreed. Something a lot of people fail to recognize too is this is THEIR show and if a caller starts going off on 17 side tangents and not getting to the point they have a schedule to keep so they have the right to interject and interrupt to keep the conversation moving forward. Lots of people in the general public don't seem to understand this about any form of talk show.
Yea George is annoying. Very hostile towards the caller from the beginning. I think he's trying to be like Dave but he doesn't realize he's railing hard at it.
The caller was going nowhere. They had to cut him off.
RAMSEY SHOW IS WRONG ON CREDIT CARDS. if u tap ur debt card and it gets scammed ur money is gone. if they scam ur visa it’s not ur laney. i know someone who got hit and it hurt 8k gone
I feel like it’s assumed if you have credit card you have debt. I have plenty of money to pay off my balance every month and don’t spend more than I have. I have great credit, plenty of cash, and get upgrades on my flights. I understand the Dave Ramsay plan but people just need to be smart spenders when they have credit cards.
How old are you? "31" "I thought you were younger" 🤣🤣🤣
Autonomy is a great word. The caller was "afraid" his rent was skyrocketing his response was to buy a house. He is driven by fear because he lacked control. Fear and greed makes us do dumb things
I will always disagree with Ramsey on this subject. Until you have a full funded emergency fund you should never just cancel all of your credit cards. His $1k emergency fund is no where near enough in today’s economy to be alright. If an emergency does happen you will be screwed. As you pay them off place them in a safe place or hand them over to someone you trust, once two are paid off, then cancel one.
I’ve been on his plan for 4 Years now paid off $60 k ( $15 left) never cancelled a single card. No issues once a card paid off it’s placed into my safe and never used again. CC are not the problem ( they have advantages) it’s the irresponsible that are the problem.
1K is only a starter EF. Just to take care of a minor emergency ......And Motivate to get out of Debt quickly and Build the fully funded EF of 3-6 months.......This what Dave and Personalities Teach
To answer the caller's initial question, yes having that much unused credit will hurt you when going for a mortgage. The mortgage folks view that as potential debt. If that's the route the caller choses to take, close all the credit cards but one so you don't look as risky to the mortgage folks.
1:45 [Overheard in the production room] _"George is insulting the callers again! Show him the paddle racket for when he talks about withdrawal rates!"_
So insulting that he has roommates at 31! 😤
@@roolyfe
Tall, Thin, Young, Blond, Busty
When he said “I never really thought about that”
It’s callers like this that really need to hear the word. They have the understanding once the truth is given to them and the desire for peace. But what was holding them was the lies they were told and the misleading of the evil one.
God bless
I’m never getting rid of my credit cards. I have 13 and I want more.
If there is no discount for cash you are losing money not using a credit card with cashback for purchases. Do you want 2% back on your car insurance or not? Imagine if Ramsey listeners donated all the money in cash back to a charity? I pay my CCs charges as they post, very easy and quick to do.
When you have debt, you’re actually paying MORE than the original cost, because you’re paying interest.
Happy to see George is still in one piece after 3%retirementgate
How about knowing how to balance the two! Because theirs people who knows how to work credit
My credit score is 830, it’s been around there for 10 yrs or more. I do have 205K in credit cards, but only use $1800 a month for bills and pay it off every month. I make around 95k a yr, but only use about 45k a yr. My 260k house cost me 100K 15 yrs ago and I owe 30K on it at 2.5 Apr.i have about 100K in a cd, but plan on retiring in 3 yrs and moving close to grand kids and kids in another state. My pension then will be 9k a month plus the sell of my house in this state.
Y'all drank your coffee and got good sleep...fantastic teamwork and wisdom drops on this one.
you only need 1 or 2 secured credit cards that it with credit limit of 500 and keep the usgae under 30%...pay small purchases like 50 bucks a month thats it auto pay it in full credit card is a bill
I get their advice but I had my debit card number stolen too many time to feel safe giving it to companies for reoccurring charges. We have a credit card for this purpose and we pay it every week so carefully track spending.
Yer doing it wrong lol. You dont use your working debit card lol lol.
This is the reason why I refuse to take Financial Peace. Those leading the course will tell me I have to get rid of my credit cards, and I'm not willing to do that.
If you have self control and are not going to run up a bunch of credit card debt, there’s no reason to give up credit cards. Pay off the balance each month and take the cash back. Dave follows a bible story that says something like, ‘a borrower is slave to the lender’. 🙄
Take the course anyway, we did, and we're down to 2 paid off credit cards, we use only when we get denied for cash or debit. The Ramsey course is good in so many other ways.
Exactly. I have real cash set aside for emergencies and don't need to "borrow" anything. However, last year I decided to move to a different place and was DENIED leasing several apartments bc I had no credit. Met all other requirements! no evictions, stable income etc and was prepared to pay higher security deposit. I knew I made a HUGE mistake by not building credit. Thankfully I got a cc through my bank with no hassle and 7 months later had a high fico score by using 1% utilization and making payments on time and in FULL. I don't pay a penny in interest the bank actually pays ME
@@asiaanderson5556 In one episode, Dave (or one of his Ramsey folks) said they called several landlords and asked if credit history was needed to rent from them. They said they were told , “No”. That’s baloney. As a landlord, I don’t rent to anyone unless I see a credit history.
You’re probably more financially responsible than most people, so you know how to leverage your debt. His advice is for people who are lost and need some structure and direction with finances, that’s why it’s more strict.
Your credit score stays higher with several accounts open. Especially if you pay one off with others still open.
Get the house first, then have a Credit Card Cutting party second.
Close the cards and pay off the debt, simple.
We have a paid-off credit card we keep for our business and another for personal use. I've been through the Ramsey course 2x and still need access to a credit card. Recently, we couldn't use our debit cards at an out-of-town gas station. No debit cards, credit only.
Recently I rented a car at the airport and had the same situation; credit card only! (I didn't find out till I was at the counter)
As far as cash goes my local ATM where I get cash was boarded up (with wood boards) and I couldn't get cash. Other times it has taken my card, and said it was not valid. So for me, the credit card is for emergency use when I can't get cash, AND the debit card won't work or is refused. I live in Fort Wayne, a city of 280,000 people.
With Hertz, you need to show a return flight within 24h of when the car needs to be returned, and a extra hold in case of damages (I've never had this actually charged), but that's all you need to use debit. I know some other rental companies don't take debit at all though.
good point, didn't even think about rental cars. 95% of them are credit card only.
@@jordanhoman0212 but they still do a credit check, and they don't allow you to get a tesla or premium car.
@@BrianErwin Wouldn't debit still work though since it can be processed as credit? As long as you have enough for the max hold amount I can't see why this would be an issue
@@SF-bh7rd i'm not sure but these are my guesses: first, when you swipe a debit card, the option of credit or debit is displayed, which would alert the merchant, if "debit" isn't already written on the card. second, some banks will show a hold of cash, but still allow consumers to spend that cash. so, you could technically empty your checking account after the hold is placed, putting your account in the negative, and even close the account, while there's no way to empty a credit card account since the hold effects your credit limit. plus, people may have only the amount of the hold in their checking account, while it's assumed the credit limit isn't maxed out. third, there's probably some insurance differences between a consumer's cash (debit), and a bank's cash (credit). but you're right, i don't see why you couldn't just hand them cash at the counter for the hold.
Oh my, that "expert" guy totally misunderstood the caller's question.
They should educate the entire banking system every time I called to get a mortgage loan first thing all the institutions asked what is your credit score which leads everyone to have credit cards.
There's no need to educate the entire banking industry. Their recommended approach is to use a finance company that does manual overwriting.
we have zero credit card debt right now...but i wont close them...in fact i just upped the credit limit. I know what its like when we didnt have them and how that affected us being able to apply for a mortgage and other things. Sure if i had money to buy them outright scores might not matter but i dont have that kinda money and the scores matter sadly in a liberal world
Omg Rachel sounds JUST like her father here 😂❤
It is crazy how much people care about credit score. I use to as well cause my Dad (who is well off) always preached it.. but after being in a house for last 7 years, my wife and I dont have car loans. Have a paid off rental property as well. I dont remember the last time checked my score. We do use credit cards but always pay em. (I know a no no). It is a stigma in society that we all fall victim to. Thing ive noticed is typically the ones who care about credit score, are ones are struggle. Because its a game to try get a new high score. I have friends who have great credit and they complain they cant buy a house or get ahead. Thinking high credit score all sudden just makes life easier.. No matter what score is, still have to live at your means and pay for what you buy.
Amen brother. It’s all a game
I paid ofd my house last year i dont see how the next generation is gonna do it it if i sold my house today the buyer would pay 5000$ a month on a 30 year i paid 1200 in 2010 when it was new
Pay off my credit card every month, get the rewards every month, and I have a great credit score. The Ramsey team is complete trash on this subject.
He has a high FICO 800! I would rather have a 800 FICO than 💯 k in the bank 🏦! George is so insulting you have roommates at 31! Out of touch! Most Americans are broke and poor! I am struggling to pay my bills 💸! I have applied to 300 jobs nothing!!!! American 🇺🇸 dream is dead 💀
That's why you find somewhere better to live.
Um what?
If I had 100k in the bank I would never think about my fico score. Why would you need to?
definitely find another place to invest before closing credit cards and of course pay iff outstanding balances
Can he at least wait until he closes on his house to chop up the credit cards? I don't understand this insistence on jumping through hoops to do manual underwriting
The rich rules over the poor, and the borrower is slave of the lender.”
I loathe when people try to compare renting to mortgage payments “apples to apples”. It isn’t the same thing. Why do people not factor in interest, property taxes, maintenance costs, or time investment when calculating the cost of home-ownership?
Fools.
Okay, off subject, but I just need to say that yellow top looks fabulous on Rachel!
Name checks out. Lol
Her look was priceless
Cut up the cards, get a zero credit score so you have to pay more for manual underwriting. THEN only buy a house on a 15 year fixed (highest monthly payment possible) on 25% your take home income with 20% downpayment. Using this formula less than 10% of the population can afford an AVERAGE price home while housing prices continue to increase.
Just be a renter the rest of your life 👍🏻
Just going to point this out, but if everyone did follow that formula and indeed only 10% of people could buy houses wouldn't that lead to house prices dropping as people aren't buying then?
Manual underwriting!! Cool. 😂
@@killersiggy wrong. Supply is incredibly low because nobody is selling because of how much it will increase their costs. Low inventory = high prices
Yer a drama queen lol. Its not more expensive get over yourself
@@killersiggymaybe but thats not going to happen
do not believe in Debit cards...at all....keep a couple of CC and pay off monthly....get ride of the rest of the debt.....
This guys voice ticked me off 😂
Telling the man utter nonsense because they're wedded to dogma rather than committed to understanding his individual situation and making recommendations that are suitable for it. This is why going to financial entertainers for advice on major decisions is folly -- it turns out that real financial planning doesn't make for good TV or radio.
Funny how most of the comments here are critical of the Ramsey method. Yet, they're watching the videos! Weird how our minds work. Debt FREE-dom!
yeah, some of them also watch ted bundy interviews but are against murdering people and comment on how evil he was. what's wrong with them?
No we watch them to see some of the nonsense they spew out. Some of what Ramsey says is good, but not everything works for everyone.
It comes down to "Do you want your life to be owned by debt to others?" or "Do you want your life to be owned by you?"
I don't own my life, GOD loaned it to me.
Someday, I will give it back.
Or, you can have credit cards and treat like a debit card and pay it off that same month, and never pay a cent in interest. And own your life too.
I got free hotel rooms using a credit card with no monthly fees. Its great card. I say get a card if your making great money and responsible.
George said, "Why?!" 😂😂😂😂
I've actually dealt with credit cards, and if I can avoid it, I don't ever want to get in debt ever again. Dealing with credit cards means you'll always be paying something to keep it open unless you get one of those others where it's always free to keep it open. However, if you use it, you better expect there to be more than just what you spent in the bill that comes in the mail. Expect there to be fees you might not realize are coming on top of what you really owe. If you're not used to dealing with regular credit cards, this can be overwhelming if you have limited income. Sometimes a credit card can come in handy in a pinch, but in the end it's going to cost you more than what you spent
Put a pre authorized payment on every single credit card and you don't even need to think about paying the bill, only the cost you put on it. It's really not complicated in any way shape or form but people love to make it that way.
You must have been paying off your cards partially and then getting hit with interest and/or late fees. But if you have a card with no annual or monthly membership fee, and you pay off the balance completely every month and don't use the card for cash advances, you're not going to get billed for more than what you actually spent.
Hmmm…there might be cards that charge fees (Amex for example) but bank issued cards or store cards don’t charge anything if you pay in full on time every billing cycle. If they do, find a different issuer. I get why Ramsey preaches this philosophy. The people that need his help have no self control or self discipline. For them, “cold turkey” is the only way that works.
You sound financially irresponsible.
Their is zero hidden fees if you pay off your card balance at the end of the month.
Treat it like a debit card and track your budget.
It's not free money. It sounds like you treated it as such.
In 39-years of credit card use, I've never paid a penny in interest or fees. Where are all these "costs" you talk about? Just pay the card off in full every month, it ain't that hard!
Life is just complicated. I’ve been from no cc to cc to no cc to cc to no cc… it’s just not black and white. If I learned anything about life is it is unpredictable.
Without loans I wouldn’t have the business that I have today- debt free 3 years now.
Without paying cash, I would not have the debt free, cash flowing business I have now.
yes you would. the path would have been different, but just because it worked this time with debt does not mean it would not have worked had you built the business at the speed of cash
cut up the credit cards he doesn't use, don't close them out or it may affect your credit score to buy the house
That much credit availability would be a problem getting a mortgage
The caller should pay off his $20K of student loan and medical debt, close a few of his credit cards (keep the oldest one) to cut down his total credit limit from $100K to around $15K-$20K. His credit score will see a small drop and partially recover within about 4 months. Then he can go buy a house and avoid the huge hassle of manual underwriting.
There is no need for him to reduce his total available credit limit.
Does Churchill Mortgage report your payments to your Credit Report?
? will you have a Credit Score?
Yes they do
You have to have no debt or avaliable credit to have no credit score
@@greggpurviance7252
Does XXX report your payments to your Credit Report?
If your lender does not report>>>
it does not show on your credit report.
The "Ramsey take" on lines of credit is overgeneralized, merely a "strawman" argument, and doesn't apply to the 45% of the people who use them as tools which benefit them. These people have never claimed to "get rich" off of bonuses form credit cards. They are used in lieu of using debit cards to get a little extra for good/services that they were intending on purchasing anyways.
I just lock my cards from myself lol
Pay your credit card balance at the end of each month. Pick yourself up by the bootstraps and take personal responsibility.
More like close the credit card and don't have one at all.
George looks and acts like his kids kept him up all night and he’s over the BS today 😂
Where’s Dave…. Yes, close some cards but not all…. He’s not there yet…. Keep a credit card open for emergency, ability to rent a hotel room etc. He’s young and isn’t established financially yet. What about his idea to buy a house?
That building is not $300 million. It cost like $40 million to build. They think it went up 7 times?
Probably, given how long ago it was built and how crazy real estate has gone up in value.
@@1981lashlarue No other business around there cost that much.
There are some sites where you can see the market value.
The market value is 4 million. That's just based on taxed he paid.
So maybe double or triple that.
There are more to the expenses of a building than just what it cost to build.
@@amireallythatgrumpy6508 Like what? It is not worth 300 million.
How much the company makes, have nothing to do with the value of the building.
Like the land for one thing. And it's quite possible that the source you got your data from is lying. It's an American source, so it's no more likely to be truthful than Dave.@@jimmymcgill6778
How will your credit score go to “0” if you carry a mortgage? Also, this is the first time I have heard a 5% down payment on this show; what would DR suggest?
0 credit scores don't even technically exist as there is a minimum.
They say for first time buyers 5-20% is ok.
Dave says pay cash for a home 🏠
If you have a fully funded emergency fund and your payment will be no more than 25% of your income you can do 5% down
@@Hectormatos22 where in the hell in a major American city you do 25% of your income. Women want to be stay at home wives not dual
Income
Nice Shirt George Kamel, where did you get it from ?
I don't use cc for emergencies I have real cash set aside for emergencies. I use cc to keep a high credit score bc Im not wealthy and can't afford to buy a house right now. Landlords want to SEE a credit score period.
Hopefully you've got the message by now.
What was that nonverbal thing Rachel directed at George where she mimicked a golf swing or something?
Out of curiosity, if someone buying a house goes with the underwriting (no credit score), how is the interest rate determined if not paying cash? And how is the interest rate compared to someone with a high credit score?
Just cut the cards up.
Mortgages are scams. I never want one, Ill save up to pay cash for a home.
he tried so hard to make himself sound better off than he actually is
To get a home mortgage, even at a 15 year mortgage that Ramsey suggests, you need to have good credit. Unless you don't have the cash to buy a house outright (like 99% of people), you'll need a loan. So there's nothing wrong with credit cards as long as you're responsible and pay the balance in full so you don't pay any interest. That's how I do it. Never a penny to interest.
Sir…the point is it’s not like the for the majority. Dave speaks to the masses
@@OopThereItIs77777he makes absolute statements. Many of which are worthless to those with good financial knowledge.
Wrong, mortgages are about ratios, nothing more.
@@eegernades And yet he has made more millionaires than you have teeth.
@@alinatamashevich3354 still doesn't mean hid advice is great for those within good financial standing and with good financial literacy
Now that was a cool call
I'm doing peachy thanks for asking....
I hear you - 90k a year can feel tight. But with 90k a year, you can budget your way through ANYTHING.
But sean, I want you to really think.... I mean really think....
What is a hundred dollar bill worth to you?
What is an 800 credit score worth to you?
Now, go into a store, go to a vendor, throw down an 800 credit score OR throw down hundred dollar bills.... which do they care about more???
...
Now, laugh. Your question be answered pal.
Working at the speed of cash, not the speed of value.
The explanation it so easy get home loan with no credit what a joke my car loan bank won't loan you anything if don't have score 700 or more
Getting a car loan is the dumbest thing a person could possibly do. You should not get a car loan under any circumstances. If you can't pay cash that is because you failed to prepare. You're reacting to life rather than controlling it.
You can get manual underwriting for a mortgage but it is a hassle, more expensive & a whole lot less options. (although for a "Ramsey personality" probably much easier)
@@amireallythatgrumpy6508
???????
0% loan
Walk for 5 years, save, then buy the car or
Pay for the car monthly the SAME amount as saved and
Drive today.
I Know, take $50K that is making 11% and buy the car and
lose the $5500/yr.
I have a $100K/yr pension, if I don't spend it, it accumulates.
Burning Cash in your fireplace is Dumber.
Close some cards. Seven cards is ridiculous. Pay off the 20K before buying a house. Don't depend on the roommate to be able to afford the mortgage.
I am continuing shocked at people calling the Ramsey Show trying to justify the use of credit cards. We all know their stance on this issue. I use them but would never all this show and trying to convince them otherwise.
AGAIN with the "manual underwriting". VERY few & far between, and if those few don't say "yes", you are 100% SCREWED.
Hey Shawn, you're a hard head my boy.
If you have a well funded emergency fund should never need one for that reason. That said I do keep for cash back. A cc can also provide sometimes additional car insurance for rentals.
I use a debt card
Your score will not go to 0 if you dont carry debt for 12mo. Thays a flat out lie. If you CLOSE all accounts THEN it will go undetermined after about a year, until you get that mortgage then you'll have a score. Such stupid advice. Spend less than you make, never carry debt, live by 50/20/30 rule and youll be fine.