Originally Posted by
JamesBond
But you know as well as I that the vast majority of CC holders won't do that. And that actually goes to the heart of what DR is all about - behavior modification. I think an interesting contrast is how DR and Clark Howard go about 'training' people to get out of debt. Dr says to pay off your smallest balance first. That gives the debtor a sense of accomplishment and is a quicker reward. CH on the other hand says to pay off your highest interest rate first (which I think is the better financial move... but requires more discipline which has already shown itself to be elusive).
Anyway you slice it, they are trying to help people that get into a bind via a rigged system. The .gov wants people in debt. Were that not true, how is it that they allow credit card companies... banks... to charge usurious rates of interest on people that already show they cannot afford to be where they are?
Financial literacy is lacking and the education you choose is what you are exposed to. Carleton Sheets in the 90s had a real estate system that worked for me. Use other peoples money and buy right. If more people understood that gains are made on purchases rather than sales, they would be better off. It's counter intuitive and requires discipline but so does DR and CH. The CS way, you acquire appreciating assets. Que gunfighter. Disclaimer: I'm out of the rental business because I couldn't deal with the DR idiots anymore. They didn't pay their bills, rent included. But I did well enough to be happy and secure.