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Location: Just transplanted to FL from the N GA mountains
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The thing about the "snowball" is at least it does get something paid off! Most people just pay their normal monthly amount and usually the largest interest rate is USUALLY on their credit card. Which logically is less of a balance than their mortgage or car loans correct? So most likely they are paying off their credit cards first, or those small loans that they borrowed from one of those quicky credit places.
The snow ball does work! Your saving interest no matter what when you PAY SOMETHING OFF. And if a person is to the point that they need to do it, they more than likely aren't the kind who are going to get into such depth of figuring out which one of their loans they should pay off first, nor will they have additional funds to just thump down. The snowball tells them to take their normal amount of payment that they have been paying and add that to the next payment. Thusly.. the monthly outflow doesn't change, but it does show them how to pay off the debt more quickly...
Maybe you're confused but that is Dave Ramsey's plan and advice word for word. Once you pay off the highest interest rate account you then put all extra money towards the next highest...
Have you ever listened to Dave Ramsey speak?
I have, and that isn't his plan. His plan is to pay off the lowest balance first, not the highest interest rate.
Here is a link to his own website stating that fact. He actually tells people NOT to concern themselves with interest rates. Could a person get worse financial advice?
" List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan."
Ramsey explains why every liberal is wrong... about everything. Intentions don't supersede math. Or reality.
It was obvious at its inception. The contention was this-
"We will add 40 million citizens to healthcare roles, and it will cut overall medical costs".
Simple math shows that if we extrapolate the real cost of healthcare per month ($1,000), mulitply X12, then multiply by 40 million, then we have the real annual cost.
It was obvious at its inception. The contention was this-
"We will add 40 million citizens to healthcare roles, and it will cut overall medical costs".
Simple math shows that if we extrapolate the real cost of healthcare per month ($1,000), mulitply X12, then multiply by 40 million, then we have the real annual cost.
One does not create something from nothing.
My question is this...If it is so impossible...such a unicorn...why are other countries so successful at driving down costs?
Why does an MRI cost 3,000 dollars in the USA but 150 in Belgium?
Why does one night in an American hospital room cost the same as 7.2 nights in a Finnish hospital room?
How do they do all of this for LESS MONEY PER PERSON than the USA?
All of this conjecture that you guys throw up is cute and all, but literally 50 international examples exist that refute you're pie in the sky arguments.
Seems the liberals and their sorely misguided "soak the rich" mantra are actually holding the U.S. back.
The regressivity (if thats a word?) of their tax structure is sort of two sided because taxes are just HIGH on everyone. The tax wedge is high in general as opposed to being increased substantially for one group. The GINI coefficient is more telling because it tells more about income equality itself, which we are much worse off.
Leeches don't want to know that their dreams of eternal leechery are doomed.
Are veterans who utilize the VA leaches? How about Granny on medicare? How about the orphaned person with down syndrome? How about kidney transplant patients without the means to pay that are eligible for Medicare? What about the municipality that receives grants for a new library?
People in need aren't leaches. No one will deny that abuses exist but to claim that people that are in need are innately leaches simply because they need assistance is just absurd.
He doesn't promise to make anyone rich because he evangelizes a method of debt repayment that keeps people in debt longer. He tells people to pay the lowest balance first regardless of interest rate, which is an insane strategy. He also doesn't seem to understand the difference between average and compound returns when drawing from an investment portfolio upon retirement.
He has a nice song and dance, but gives pretty poor advice.
Nonsense.
This advice is to people with a large NUMBER of debts. For them, the highest interest rate is almost ALWAYS the the smallest. Even if it isn't, it's usually close to it. The reason most people look for advice... Is that they're barely making ends meet. Most of them have very minimal, if any, discretionary cash flow. So, the plan (which you don't understand, because you turned off the channel immediately) is to free up your monthly cash flow as fast as possible. You CAN'T pay off debts faster if you have no cash flow. The best rule is to pay the smallest, so you can improve your cash flow, so you CAN MAKE PROGRESS on the rest, instead of just paying interest.
You seem to be completely ignoring WHO the advice is given to and what circumstances they are in. AND, if you'd bothered to educate yourself instead of looking for reasons to condemn someone, you'd know that Ramsey always teaches people how to do basic financial analysis. Which leads people to do what WHAT MAKES SENSE rather than just blindly following someone.
I've been through his Financial Peace University, and there's NOTHING in it that isn't true. Further, it's wise, prudent, and it works. The reason it works, is that Ramsey's advice is geared to work 'for humans' and not computers. We're not computers, we're complex people, and we need both motivation and hope, in order to stick to a plan of long-term delayed gratification to meet a goal.
Any economist can tell you that economics is the study of human behavior, not just equations and complex theories. What makes people successful vs what makes them failures is rarely math skills, it's how you think and how you make decisions. Ramsey's advice is geared to reach and provide meaningful and workable strategies. You pay off the SMALLEST first, because that's the fastest means of getting a reward. It also frees up cash flow (and most of his time is spent on emphasizing how to think about spending and priorities), so that you don't live at high risk for small events, such as a broken car transmission.
It is well thought out and it works for real humans.
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Have you ever listened to Dave Ramsey speak?
