David Ramsey Hypocrite. It keeps popping up as how people get to my site. I really can’t understand that considering I have mentioned David Ramsey exactly once (maybe twice). I seem to remember a few other people tackling this subject; five cent nickel and debt free revolution come to mind. Well I have no loyalty to Ramsey though I do like his debt snowball technique so I am going to dive into this David Ramsey hypocrisy issue. Of course I have a feeling I am opening up a Pandora’s box but here goes:

David Ramsey hypocrisy allegation #1: David Ramsey filed for bankruptcy and now he is a financial advisor

When I was in grade school I remember as part of the I think now defunct D.A.R.E program they brought in a speaker who was a former alcoholic and drug addict. If anything someone who has been through the absolute worst in a particular situation is in a good position to show the evils of that situation. I just don’t find a lot of credibility with this argument.

He even describes the time as the worst time in his life full of fear, desperation, etc. I think the fact that he has made it his life mission to help others avoid the same mistakes he made is noble, not hypocritical.

Score: Not Hypocrite view 1, Hypocrite view 0

David Ramsey hypocrisy allegation #2: David Ramsey rejects credit cards and ‘forbids’ their use, but he accepts them on his website

I had to do some personal investigation into this one and I was surprised to see that he does, in fact, accept credit cards. There is a disclaimer:

We understand what is running through your mind right now. “I can’t believe Dave Ramsey is accepting credit cards! This can’t be true! He’s sold out on his principles!” But before you shave your head and run outside on your front lawn screaming, “The world is coming to an end, save yourself!” let’s clear up a few things:

Number 1 - We are NOT accepting credit cards! Never have and never will. I mean, come on, do you listen to the radio show at all? Have you ever heard of a plasectomy? Please understand that accepting credit cards is something that will NEVER happen as long as Dave is still alive (and even forever after that!)

Number 2 - We are accepting DEBIT cards. We know that some people will go nuts when they hear that, but one factor is being overlooked. Debit cards do not work unless there is CASH available.

There is one problem with this: there is no distinction in Visa processing between debit and credit cards. I find this to be somewhat of a cop out especially considering his militant views on the subject. This is basically akin to leaving a cookie jar on the table around people addicted to cookies and telling them “you better not take a cookie.” It leaves somewhat of a doubt in my mind about how much of his stuff is “for show” and how much is “for real.” He obviously is just trying to make a living like the rest of us but the thing is, he’s gotta know most people are so desperate for his information (and likely to buy) are the ones who use credit. There is no way around the fact he makes money off the people he’s trying to help and that not offering a credit card option would hurt his income.
You could argue the “drop of water in a lake” theory …but what is a lake except a lot of drops of water? I can see both sides here. I lean toward hypocrite here, but I can’t be decisive about it. Point for each side plus a half point for hypocrite.

Score: Not Hypocrite view 2, Hypocrite view 1 .5

David Ramsey hypocrisy allegation #3: David Ramsey pushes “smart” financial decisions but his debt snowball is fundamentally “not smart” because it basically ignores interest rates

As one fellow blogger put it “David Ramsey is bad at math.” That is true, but he is also “Good at motivation.” The argument goes that he is telling people to be smart about finance, but paying off low interest rate small debts before larger high interest debts is decidedly backward as far as the smartest way to pay off a debt. I can see this point of view but I also think he is right in a lot of ways just for the morale boost it provides. This isn’t “hypocrisy” in the pure meaning of the word so this argument is null and void. No points for either side.

Score: Not Hypocrite view 2, Hypocrite view 1.5

The long short of it is that I don’t think he is a hypocrite: he lives what he preaches and thats really what it comes down to. I would definitely say there is some “stage acting” going on but that doesn’t make him an hypocrite, it makes him a showman. A lot of people have used his system successfully which is what I care about here: you the reader. By all means listen to his show and read his books, just don’t become a militant on any issue and keep an open mind.

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