This is Optimal Finance Daily, episode 1180,

Why Dave Ramsey is wrong about credit by Gen Hayes of Gen Hayes.

And I'm Dan, I am here every single day reading to you from the best personal finance blogs on the web.

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But I will keep this intro nice and short for you today, so for now let's hear today's

post as we start optimizing your life. Why Dave Ramsey is wrong about credit by Gen Hayes of Gen Hayes.

First of all, who is Dave Ramsey? If you aren't familiar with Dave Ramsey, he's a personal

finance expert and radio show host who has helped thousands of Americans to break free of

debt. He's authored books, teaches a class called Financial Peace University,

and offers speaking events around the country. Now I'm a huge fan of Dave Ramsey. Reading his book, The

Total Money Makeover shifted my perspective and changed my life.

It inspired me to get out of debt, and my hubby and I recently finished paying off $127,000 worth of debt, mostly student loans. I have so much respect for Dave Ramsey and I agree

with maybe 80% of what he teaches, but there are a few areas where we disagree. The biggest

fault I find with Dave's approach is his advice on credit cards.

Dave's approach to credit.

Dave is staunchly opposed to credit cards and tells everyone to cut up their cards.

His advice, ignore your credit score completely and pay cash for

everything. He likes to say that cash is king. While I agree that paying cash for

everything is preferable, I also live in the real world. Dave Ramsey resides in a 12 million dollar home.

Are there people who aren't millionaires who still manage to pay cash for their homes?

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