Comments on: Dave Ramsey vs. Suze Orman: Which Plan For Dealing With Debts Is Best?

By: Casey

Casey — Tue, 01 Sep 2009 14:33:47 +0000

I’m so glad I don’t have to worry about which of these is better anymore. All of them will work but which one will keep you out of debt forevermore. I can’t believe Suze Orman will encourage people to stay out of debt, afterall she’s on FICO’s payroll. Hmmm, do I really need a high credit score Suze?

By: Sean

Sean — Wed, 27 May 2009 22:45:19 +0000

Dave CLEARLY explains that he isn’t concerned with saving on interest with his “snowball” method. He KNOWS that it COULD cost more. I say COULD because, as Dave points out, paying on the biggest CC bill first makes sense, but it’w what millions of people have been trying to do for many many years and failing to accomplish. He wants to FORM HABITS and CREATE SUCCESSFUL MILESTONES. Thus the plan to pay off the lowest debt CC FIRST. You do it, celebrate, say “I CAN do this!”, and begin working on #2. Pay it off, celebrate again, gain MORE CONFIDENCE and go on up the snowball. My wife and I tried the other way for YEARS and carried debt year after year. When we applied ourselves to the Debt Snowball method, we got them ALL paid off. AND THUS SAVED INTEREST PAYMENTS, since we FINALLY got rid of ALL the payments. It seems that Dave’s plan is just too simple for some people to appreciate how well thought out it really is. Dave didn’t come up with this over a cup of coffee and write it on a napkin. He found the most likely way to succeed through trial and error and study. Trust him 100% with his financial advice. You WILL NOT go wrong. Now Suze Orman on the other hand… don’t get me started!!

By: Shannon B

Shannon B — Tue, 28 Apr 2009 22:44:28 +0000

I went through FPU about 15 mos ago and have paid of 3 credit cards, will pay off my 4th on the 1st and will have my 5th paid off by Christmas, and my car paid off by March. I can’t wait to be able to call Dave Ramsey and yell IM DEBT FREE!!! I have learned so much more than the minute amount of money that doing it the interest rate way of paying down debt would have saved me. It is nice to not have 6 payments a month and only 1 or 2. It is a phsycological thing and am thankful for it. Due to his envelope method of budgeting, his debt snowball(selling things, second job, etc), and MVELOPES.com I now have money in savings and am not paying for anything with credit!! I am loving being in control of my money!! I would highly recommend his methods!!

By: Marcella Hill

Marcella Hill — Fri, 24 Apr 2009 19:23:12 +0000

There is quicker method. Go to the website and review the charts I have.

By: Austin

Austin — Sat, 04 Apr 2009 14:51:38 +0000

I bet Dave has more money than trevor.

By: Annie

Annie — Sun, 29 Mar 2009 22:59:24 +0000

As a user of the Dave Ramsey program…it rocks! Seeing those small victories every month was a definate motivator to keep going. We made more than enough money before but we didn’t watch where it was going. It’s a definate change of lifestyle and we are better off because of it. Thanks to Dave Ramsey and his program, WE’RE DEBT FREE and I was able to go part time. Our pantry is always full and we don’t stress about money anymore. So even if it cost me a bit more in the end, it was worth every penny to feel the way I do now!!

By: Annie

Annie — Sun, 29 Mar 2009 22:54:59 +0000

As a user of the Dave Ramsey program…it rocks! Seeing those small victories every month was a definate motivator to keep going. Thanks to him WE’RE DEBT FREE and I was even able to go part time. Our pantry is always full and we don’t stress about money anymore. So even if it cost me a bit more in the end, it was worth every penny to feel the way I do now, knowing that the only person I owe money to is me!

By: dave

dave — Fri, 13 Mar 2009 04:33:18 +0000

Trevor, you must be upset that Dave Ramsey is right. Following his plan will work every time if it is followed. It is, as he says, “common sense”. Credit card jugglers are just fooling themselves.

By: Brad

Brad — Thu, 12 Mar 2009 06:05:13 +0000

The Psycological aspect of Daves plan is the key. It is well worth the insignificant difference between the actual amount saved to havee that first and then subsequent victories. Yes you do save more money going for the high interest first plan but it is not nearly as fun. And when things are fun you are more likely to do them.

Think of it as going to the casino. You dump in a little extra on some bad odds hoping for a payoff. But this time you actually get the payoff and then another and before you know it your a hell of a lot better off than you were when you started.(this is a lot different than the actual casino)

By: sc

sc — Mon, 02 Feb 2009 17:58:54 +0000

We are doing Dave for the simple reason…we want OUT of debt….we don’t want to continue a credit line with the potential for debt. If my husband could control his spending, we wouldn’t have gotten in a financial mess and Dave’s plan deals with people and behavior, not just the math. Credit cards don’t deal with you when you are behind and over the limit. Dave makes us take care of us first. He also deals with when and how to make investments and building wealth once you have paid off your debt. When it came down to it, Dave’s plan fits my lifestyle and put more disposable income in our pocket faster. Plus, Dave makes sure you can take care of emergencies without digging back in the hole and that is crucial.

By: Josh Fowler

Josh Fowler — Sat, 01 Nov 2008 17:57:56 +0000

Well, I see that all of these have some validity to them. Unfortunately, good mathematics will never get you out of debt. Only a change in behavior can get you out of debt. With Dave’s method of paying off the lowest balance first regardless of the interest, you see a small victory which spurs you on to more success. I know this not because I am a financial expert, but I help to put my wife through school, and we paid off about 13,000 dollars in a year and a half, on less than $40,000 combined income, in a bad economy, in one of the most expensive place to live in the country.

By: Dave

Dave — Sun, 31 Aug 2008 22:01:54 +0000

Wow! (previous comment)… Dave Ramsey was smart enough to learn from his mistakes, and not only is educated and wealthy, but is also willing to share his knowledge, encourage and educate others to get out of debt (with a method that works), and, again, is smart enough to caspitalize on his knowledge. Math and psychology work together with Dave’s qualified system. It also teaches people to be responsible and to stay out of debt. Now…you do the math.

By: Trevor

Trevor — Mon, 25 Aug 2008 09:41:27 +0000

I love how Dave and his followers decide mathematical truths are useless simply based on the idea that “math doesn’t matter”. Nice logic, if you believe that there is no wonder you listen to an unqualified, uneducated, and bankrupt idiot like Dave Ramsey.

By: Isaac

Isaac — Sat, 16 Aug 2008 13:42:19 +0000

I don’t know that there is a right or wrong here. I heard Dave say that sometimes his plan does not show the best result with pure calculations, but if you factor in the human element I think he understand the larger problem. It’s not resources it’s human nature. The need for focus, motivation, and encouragement that comes from even small successes can be the difference in success and failure. It would be good to find out which plan has a higher drop out rate. It’s not in just the learning, but the ability to stick with it. There are probably may better plans, but how many people will utilize them. I think Dave’s success and the success of those who have followed his plan speaks volumes.

By: Jaime

Jaime — Wed, 06 Aug 2008 18:00:03 +0000

The article didn’t mention that as a part of Dave’s plan you must first cut up all your credit cards and never use them again, while Suze wants you to keep as many open cards as possible. Keeping all your credit cards is serious flirting with disaster. The average person will soon be back in debt, possibly worse than before.

By: Wizard Prang

Wizard Prang — Fri, 25 Jul 2008 20:57:08 +0000

Math nerds know that it makes sense to pay off the highest-rate debt first.

But then… a math nerd who spends more than they make is not much of a math nerd.

Dave’s plan makes more sense because, as he puts is “Personal finance is about 90% behavior”. The psychological life from getting a quick win is a powerful motivator.

By: A Thomas

A Thomas — Sun, 20 Jul 2008 14:28:45 +0000

I am a fan of Dave’s, but that being said, I don’t think it really matters. Use Dave’s method if that’s what you like, use Suzy’s, pay of the highest interest rate, or come up with your own plan that’s different than all of these. Just pay off that debt!! That’s the really important thing here. I love the quote “do what you did, get what you got”

By: Straight Shooter

Straight Shooter — Thu, 19 Jun 2008 11:56:33 +0000

I don’t understand why people who are trying to get out of debt are all of a sudden concerned with math. Had they done the “math” in the first place, they never would have gone into debt.

While I’m personally not fond of Suze, I must give her credit for attempting to get the public to realize you don’t want to live your life in debt. Any move in that direction is a positive one. I think Dave’s plan has more of a ring of truth to it because he actually had to do it himself. Yes he has lots of money now, but that’s because the common sense he teaches actually changes people’s attitudes towards debt (while Suze still tells people what they want to hear, that credit cards are okay).

Having walked through Dave’s plan step by step, I can assure you that personal changes you make with his inspiration will not only change you, but the world around you. That’s why people call into his show to scream. I don’t see Suze’s fans doing that…

By: Chuck

Chuck — Fri, 13 Jun 2008 05:04:18 +0000

I like the losing weight analogy.. If you do Suze’s plan, although it being more mathmatically correct, you’ll go much much slower in “seeing” results than Dave’s. Then again, if your so great at this math issue, you wouldn’t be in debt in the first place! Pick off those credit cards one by one and feel better as you declare victory over each bank…. and of course, never use the plastic again!! GO DAVE!!

By: Keith

Keith — Thu, 03 Apr 2008 17:33:02 +0000

As Dave says, 80% of personal finance is phycological. We can sit around and crunch the numbers all day long. In the end, the actual cost savings are irrelevant and insignificant. So what if you save $250 one way vs another? If you were so worried about saving $250, you would never have gotten into debt in the first place. Debt does not work mathematically. Neither does debt reduction. Personal behavior is the key. Any plan will work if you change your behavior, stop spending more than you make, aggresively pay off debt and never borrow again. I think Dave’s plan is the best at addressing human nature, and is therefore the better plan.