Leave Dave Ramsey alone, On this thread of messages I don't think we judge him harshly.  I for one could not benefit from what he shares because I have had a slim income averaging about $10,000 per year over a period of 21 years as a sailor (enlisted through officer, including every reenlistment bonus, sea pay and submarine duty pay).  I didn't get myself out of my debts by following his advice with the snowball method of paying off the smallest balance first regardless of the interest rate not being the smallest.  He is marketing himself to the non critical thinkers and less financially astute.  His methods enforce his marketing as an easy way to get out of debt.  We have only pointed out that his followers would be out of debt faster if they didn't pay off the higher interest debts first just because the balance was smaller.  He is exploiting people, by marketing his books, and shows.  The ones who at least can afford it are buying into the marketing when they can easily get the information off his website or free at a public library.  People intent on getting out of debt shouldn't feel that they have to attend shows (mass feel good entertainment).

The real message here is about changing habits regarding debt and changing our behavior with the things we want but can't afford. The view of using debt as a vehicle to get what we can't afford so we can impress those around us that we don't really like, is a sad reality for most Americans. It's time for us to grow up and stop living like spoiled brats. Most need to learn to get by with what they make and spend no more... I could go on, but I will step down now, off of my soap box, that I paid cash for.

Dave Ramsey is a person for the masses, while most of his methods arn't terribly flawed he has declared bankruptcy, which he acknowledges at the beginning of speaking.  Yet the best advice for anyone is to sit down with a financial planner or some sort and make a plan that fits YOU.  Obviously nothing will work for everyone as each person has a different mindset and financial needs.  If more people did plan, Americans probably wouldn't be as bad off as they are.  Ultimately they don't plan to fail but rather, fail to plan.

Most of you guys make no sense. Because people do what is simple that does not make them non-critical thinkers. The things Dave teaches are concepts that can be applied to the lives most people live. Sometimes by doing the things we were taught in finance class in college we get in more trouble. Also most people are in precarious financial situations and need a place to start. Dave helps them find a place to begin. Real life finance is not black and white like that of a business. It does involve feelings and alot of common sense. When dealing with things as volitile as these, simple is better.

Think about this.

A person has one account with a balence of 250$ and APR of 10% and another with a balance of 3000$ and a APR of 15%. If that person pays on the account with the larger interest rate the would be paying about 25% combined on both balances until the larger balance is paid. If the pay off the smaller on first balance, the amount of time they would have to paid 25% is shorter because the lower balance is paid first.

P.S.

A real critical thinker can take what Dave, Suze, or anyone teaches and change it so that it works for them. A non-critical thinker is one that does not realize that people are doing what works for them and that their way is not the only right way.

Dave Ramsey does not say to pay off the lowest interest rate first, he says to pay off the lowest balance first.  We are an emotional species...seeing results quickly gives one the motivation to continue to climb the hill.

JG

One thing most critics of Dave Ramsey fail to acknowledge is the issue of RISK.  By paying off smaller debts, you have fewer obligations should there be an emergency.  This is crucial as this is part of what makes this plan work for all income levels.  In addition, Dave's plan is centered around INTENSITY.  Much of his advice would not apply if you are unable to pay off your debts within a couple of years.  He has even said so on his radio program.  For most people the additional expense is negligible compared to the benefits and increased success rate.  

I think the simplest way is no credit card. Only cost what you have.

I used the debt snowball method before I ever heard of Dave Ramsey. The person that recommended it to me called it the "Powerpay" method. and it does work. Ive paid off 22K from credit card and loan debt. Everybody's opinion doesnt have to be the same but I doo recommend this method whoo would like an effective strategy to paying their debt.

Also Dave's envelope system works too, because Im more careful where I spend my money now

I don't think Dave Ramsey is the best investment advisor out there, but for getting out of lots of debt quickly, there's no one better IMO. I've done the  debt snowball, and it works. You see quick wins, you quickly free up tons of money to pay off your big debts, you knock off your big debts very fast because you're making bigger and bigger payments, and before you know it, you're debt free. Yes, there's a psychological side to it - because Dave is trying not just to get you out of debt but to CHANGE YOUR BEHAVIOR. When you see results you're more likely to stick to the plan. The longer you stick to it, the more likely that it will become habit. And while you're working through the debt snowball you're learning how to live on a budget, stay within your means, and pay cash for everything. Sounds like  pretty good ideas to me.

Dave isn't exploiting people any more than Orman, Bach, or any of the other financial "gurus" out there. You think the others are doing what they do as a charitable act? Uh, no, they're out to sell their stuff and make money, just like Dave is, and they're marketing themselves just as much as Dave does. You think it's an accident that Suze Orman worships at the Altar of the Almighty FICO score?  It's not - she has a business relationship with Fair Isaac Corporation, the creator of the FICO score. If that's not exploiting people I don't know what is. David Bach's plan comes down to one idea, which is: automate your savings and invetments. You can read the Automatic Millionaire and get all of Bach's ideas, so why has he written five other books that pretty much say the same thing?   Cha-ching, that's why. You don't have to go to a live seminar or Financial Peace University to get Dave's information, nor do you have to buy his books, nor do you have to even go to the library. The principles are all out there for free on his website, and you're free to just skip the rest of it if you don't want it. Dave's marketing isn't any worse than anyone else's.

I am a Dave Ramsey fan, but I would ask you, run the numbers by Dave's method (smallest balance) and your method (largest int rate)

Here is a hypothetical scenario if you could run the process for us.

Total family debts

120000  30year home mortgage at 6.8%

8000 car loan at 9%

credit card 1,  5000 at 14.99%int

credit card 2, 1800 at 9.99%int

These numbers are totally made up and may or may not represent most if any people.

I would just like to see a chronological layout of the process and the total interest paid and the total time to pay all of the debts off.

Thanks for your indulgence

Eric