Use My Emergency Fund to Pay Off Debt?
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- Опубліковано 31 гру 2020
- Use My Emergency Fund to Pay Off Debt?
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Something tells me there are a few things this caller didn't mention. $85K income and $14K debt? Stop eating out. Stop the shopping. Stop blowing through money. Throw everything at the debt and be done with it.
Something about this chick tells me she lives like she makes $125K. Why does she even bother to ask for advice. I have a friend who asks my advice about money and then does exactly the opposite. He’s basically looking for me to validate his bad behavior with money, which I will not do. I finally just told him “You don’t need my sanction or permission to spend your money anyway you see fit. However, I won’t advise you to do something stupid that I know is not in your best interest either!”
It’s never the whole story with these videos. That’s why I only watch for entertainment.
Its called liberal thinking in Seattle is screwing her over.
But i Neeed a new $1500 pair of shoes!
This was sort of a silly call. Any debt that can be settled in less than six months shouldn't need a strategy. Just do it, man.
Lol
Calls like these are so frustrating.
Pfff It was a silly call 🙄 sometines I don't get what these callers don't understand
@@Djessjazz I've been there...they understand it, they are stuck in a fear mindset ooooooor they enjoy spending way too much.
I teetered between the 2 types for far too long. It was crazy difficult to break away.
I was always super open with my sons about money coming in & going out of the household. My oldest son one day was like "why aren't you doing exactly what you are teaching us"...OUCH!
It took about a year to get it turned around. Now hearing others that are stuck like that makes me want to shake them. I'm super grateful that my son was there to shake me!!
@@Stormy_Dawn That's it exactly. Like Dave says, it's not a financial problem.
Just paid off my student loan debt on Christmas Day and I’m debt free at 25! This year I’ll finish baby step 3 and hopefully save up enough for a down payment on a house before 2022 😊
WOOT! Remember, keep females out of your sight. If you need a fix, go to a third world country (preferably Dominican Republic) and have your fun there.
@@wewhoareabouttodiesaluteyo9303 why must you people troll this channel. Just go take all those red pills and slither away already.
@@crazeekids9744 There is nothing wrong with informing people. What is wrong is YOU stopping us when you see that the system is unethical and are more worried about us NOT being transparent on these issues.
Congratulations! You are smarter than I was at that age! My husband and I just started baby step 3 yesterday! I hope the best for you and your future.
@@wewhoareabouttodiesaluteyo9303 Why do women-haters troll this channel? My wife has been a great asset to our plans, which is why we have a paid-off house, cars paid for with cash, and a growing retirement plan.
I wouldn’t touch my emergency fund to pay of debt right now, If 2020 taught us anything, it’s that life is unpredictable and the worst can happen in a snap.
Us as well! we stopped at $3000 in savings and only use it for car repair. Tooks us a bit longer to pay off debt but feels good not to worry about those car bill.
@@rogueskiss3794 we weren’t comfortable with just $1000 baby emergency fund. We upped ours to $2500. We paid off our debt in 40 months and then fully funded the emergency fund. I think Dave needs to update the baby step 1.
I used all of my emergency fund to pay off my car. Now I have nothing, but I don’t have to pay the car anymore
Dave has said in other videos that if you feel you could be threatened by the virus i.e. your job could be on the line, ditch the baby steps and just stockpile cash until the storm is over.
Also, the 1000 starter emergency fund is supposed to feel "not enough". It's designed to make you feel very uncomfortable so you race through paying off debt faster.
@@victoriaskinner8434 my job is a self employed taxi driver, god has seen me through how though I don’t know, I always give to the less fortunate and have been generous throughout many years.. may this is just karma for my good deeds, I’ve been stockpiling cash, I had £11,000 (I’m in the uk) and I’ve just blown the lot on paying off every bit of debt apart from one personal loan, my income dropped to zero when the virus came and then my landlord evicted me because I was sharing the house with him, so I’ve been living in the car and my brothers sofa now and again. I only have the loan to deal with and then I’m debt free... 👍
I'm in Australia, it's unheard of to borrow for everything. I've never owned a credit card. Never borrowed for a car. Only ever borrowed for a house and that is just over halfway paid off. Kids want college? Work to pay for it yourself kid. Often they'll appreciate it more.
Take my word, do not use emergency fund to pay off debt. Due to the pandemic, I tweaked daves plan and upped my emergency fund from $1,000 to $8,000 and shortly after I was laid off. The piece of mind I have knowing that I don't have to worry about money and don't have to settle for the first offer I get is amazing. I can take my time in my job search and find something I actually want to do.
The $1000 isn't your emergency fund, thats baby step three 3 - 6 months of expenses you're getting the steps confused
@@rory644 I'm still on baby step 2
Sure. And once you have that new job you can unpause and throw your savings back on the debt.
This lady has a stable job and steady income. She doesn't need to pause the baby steps the same way you did (wisely) due to your layoff.
Yeah see I have the same mindset as you. I have one credit card that I want to pay off and I have more money in my emergency fund then the credit card but I don’t want to use all of it to pay it off for the same exact reason that you just stated in case it happens to me. I do have a steady income but just in case it happens I want to have that peace of mind.....
@@darkdeminsionThen you’re working Dark’s plan. Not the Ramsey plan. Which is fine, but she called Ramsey not you.
I'm not gonna lie I'm doing 2 and 3 at the same time because I dont trust the world right now.
me too
Record unemployment?! What am I doing wrong? Just got back from Target picking up some trivial items. Cars and SUV's filling the parking lot as more roll in! And most, if not all, brand new! A line at the in-store Starbucks, people buying $6 cups of coffee! People roaming the aisles, staring at their $600 iPhones! And here I am walking the two miles to the store, only able to carry home what I can fit in my backpack. Happy to say I have no debt, I'm still employed and receiving a very good salary, and I have mucho savings in the bank. Sometimes I think I should just live it up with no regard for the future, like everyone else seems to be doing. How are they able to live that way? Please tell me the secret!
Those are probably all the ones collecting unemployment living on credit. You're doing a great job.
You can live it up once in a while but trust me, these people are acting like rich people but have poor mindsets.
I know the "gratification" of getting things paid off is important to recovering credit addicts, but the smallest first rule seems a little too rigid for this situation. 6K and 8K are very close and the credit cards are probably charging much higher interest.
Finally outta debt in November 2020. No credit cards. Decent emergency fund, even after Christmas shopping. Never going back!
Math is hard. You know what else is hard? Playing house and not being legally married.
my wife and I lived together for 4 years before we got married. our 13 year anniversary is coming up in 25 days. those 4 years we lived together I found out about a bunch of her bad habits and I made a choice of whether to break up with her or help her fix those bad habits. I would have never married someone without testing the waters first.
@@drunclecookie216 That's a better way to do it. Most people move in together, have no plan, little commitment and just bumble along.
@Ryan Cook, that’s why they have “dating”. You can get to know someone without playing house or sleeping with that person before marriage..
@@nohandlebravo marriage is becoming outdated anyway. it's more like a religious formality these days. the only reason my wife and I got married is because my parents bribed us. we never wanted kids and never had any and we're still married 13 years later and been together 19 years. plus you don't learn everything about someone just by dating. and waiting until marriage to sleep with someone is just religious drivel
@@drunclecookie216The divorce rate is higher for those who play house first.
130k and 6k in savings? That is insane. But regarding the question: I wouldn’t use my emergency in any circumstances but emergency!
exactly, you never know when the generator will blow or if your car needs a quick $800 repair. I wouldn't want to put that money into paying off debt.
Exactly my thought. I’d add more than $6,000 to my savings every month on that income.
Then, she should have thought about that before moving in with someone she is not married to. Also, she makes 85k not 130K, which technically if she is not spending her money like crazy, she will be fine if she has to use her emergency fund to pay her debt.
Dave, thank you for your years of wisdom that you are sharing. I am a 20 year old student and going to be a financial advisor. Your videos give me a lot of perspective and experience so far! Keep it up
Get yourself a CFP designation and that will help a ton for you.
I personally paused baby step 2 to pile up a bigger emergency fund than $1k. Count your blessings if you still receive full pay during these lockdowns.
Yeah I skipped 2 when the quarantine happened. Just focused on saving more.
1. never have debt; 2. pay it off all but 1k; - the 1 000 is not meant to be safe it is meant to scare the sh*t out of you to clean up that debt now.
Minimum 5k.
@@RelaxAndSmokeMeth that really depends on what your expenses are and how much your income is.
@@clarifyingquestions unfortunately with you needing credit history now to even get your lights turned on, that is really unavoidable
Happy new year everyone!
Happy new years to you too Jade!
Happy new year!
@@saulgoodman2018 You must be fun at parties
She's like trying to argue but ask for advice, I don't get it.
That's a woman's mindset for ya.
Just like the commenters here saying he’s not right... then why do you watch?
@@mxerb5912 because unlike sheeps people can still have opinions.
@@perotal 😂 anonymous UA-cam commenters
She’s doing “daveish”. Baby steps are not that hard. I don’t get why people can’t understand them. Just freakin follow the steps people...
Good morning everyone. Happy new year! 🥳 Let’s get at this financial journey! 👏🙏
Morning! Same to you!
I liked the advice he gave to one caller more than this one. He said stop saving and pay your debt down to where savings can cover it. Pay your debt down to $6000 and then pay it all off. You’ll be without an emergency fund for a shorter time period.
Hmm do u remember how long ago this call was ? I want to check it out
Getting rid of debt is always the best strategy!
Nah... I wouldn't drain the emergency savings account to pay debt because there might be a emergency.
@@JayTarsia25 Exactly. That's what people seem to not get....
Well she can use her emergency fund when it is an emergency and then, guess what? More interest on her debt. She can always rebuild her emergency fund if she is smart in her spending. You can't go backwards by focusing only on an emergency when you are in debt that can be paid off in a few months.
@@dorlisastjean4072 If she has no emergency savings all in effort to pay off debt, then when she has an emergency, what is she going to do?, likely charge it, and get back into more debt which defeats the entire purpose. Eliminating debt should be a priority only after you have a solid foundation first( emergency savings).
I don’t even know why I still listen to these anymore. What’s wrong with these people
Same here. I almost think Dave hires people to call in and ask stupid questions.
I think it’s just that some of us are more educated in finance/planning or further along the Ramsey plan. Some of these people just found Dave is my thought.
@@seaneric5753 yeah I agree with you. However, it’s a little irksome for me when they don’t want to take Dave’s advice
It would be nice if Dave took taxes into account every now and then
@@TheTurdballs420 - Yeah, I always find it funny when someone says they make x a year and Dave says something along the lines of "So, after tax your net income is ..." where the person makes less money in a year than me, but Dave somehow expects them to net more monthly income than I do and I still owe tax at the end of the year. For example, if someone made $10,000 a year less than me, somehow Dave expects them to be bringing home $500 more a month than I do. I get that Tennessee doesn't have State Income Tax, but most other states do have quite a significant tax. I get taxed for state and local AND school district on top of that in addition to the required SS, Medicare, Federal, etc.
2021 is gonna be amazing. Im gonna be debt free. Buy my house and start a business within the construction industry.
Thanks Dave. I’m debt free on 21st this month. Happy new year
Happy new year to all Ramsey tribe.
He said if it ain’t broke don’t fix it!!! I love it!!!
I've been listening for only a couple of months and I must tell you .........I feel great already ! I've built up an emergency fund , paying off very small debt and putting more into what's left of my mortgage. I was on the right track , but really didn't know where I was going to end up , to be sure. Now , I'm sure.
New Years Resolution.... Follow Daves Way!
I don't get what's so hard for her to understand. Do it Dave's way or not.
$85K income with credit card debt? Simple, living above her means.
Thank You.
Thanks i knew about Michael Hill! He was my professor in Oxford and told us FBC fund!
*If i was the caller i wouldn't do it...as we've seen life is unpredictable atm*
I would get a side hustle to pay off the debt ❤️❤️🎉
I completely agree!! Her job could be gone next month...6k. Savings shpyld be kept as savings...if things change financially will 1k savings cut it?
I would agree with you on that, especially since her living arrangement is unpredictable also. Ladies, save your “get out” money first. You’ll thank me later 😉
I agree. She makes $85k a year. If she’s diligent about paying these off, she’ll have them both taken care of in
I think you are wrong. Get out of debt. She has had no indication that her job is on the line.
Maybe she already side hustling and a 85k is a total income. But still she definitely should be able to knock the debt out in just few months.
Hi guys. Happy New Year .
Happy new year future millionaires. Stay safe and god bless you.
Hello Everyone. I don't know how to start. I have 6 credit cards in the collection and 3 active credit cards. Is it okay to finish all active credit cards first or do the payment for both? By the way we are planning to have bank financing for housing loan. Thank you.
The high credit card debt and “emergency savings” calls always bother me the most. I understand some of the other callers wanting to hold onto some cash even if it’s not Dave’s plan. But on these ones the logic is lost on me. You can always go BACK in CC debt if you’ve wiped out your “savings” to pay down a CC. Why do you want to pay 20% APR to leave the money in a different account? Just do it already! In a worst case scenario if you had to re-spend all of that money in 10 months you’ve at least avoided all of the interest payments and more than likely that’s not going to happen!
Happy new year to everyone I have a question when I finish paying some of my credit cards is it better to close the accounts or just destroy the cards?
Both. Cut the cards then call and close the accounts.
@@MCgrease08 thank you very much
That guitar riff intro has blown out about ten of my speakers! Fire your audio engineer!!
Blow one speaker shame on them, blow 10 speakers shame on you.
Buy better speakers.
What are you doing to your speakers for them to blow? Buy some over $20
I see many of you still watch the videos.
Happy New Year! For her, I think she set up a plan to use her emergency funds to pay off those credit cards since student loans are still on forbearance. It's not the most Dave Ramsey way, I'll admit that.
She might have a spending problem if she can't pay off $9000 in 3 months with $85k income
That credit card is the only reason she has no other debt. Taking from Peter to give to Paul as my grandma would say
@@michellerichardson3090 She is also playing house, and is living with a BF. God says you should get married to avoid living in sin.
Taxes. $85,000k gross is often $60000-$65000 net (take home). Plus you have bills.
@@LibertyFixxxer there really is no point of living with your significant other if you're not married. Some people have this idea living together saves them money but it doesn't. You may save on rent but now you're just taking that money and putting it on extra expenses that were created by having another person there. And if you break up, thats it, you're on your own and now have to figure out how to get yourself out of that situation
We’re not seeing the whole financial picture.
when she said "were not married" Dave ok nice talking to you lol
dave heard I started baby step 2&3 at the same and he subconsciously used the force to push that mute button.
$1,000 is a 'rainy day fund'?! That is insane. What does $1,000 do for you? If you live in SoCal, $1,000 gets you nothing. That's a car repair, or a plumber or an electrician coming to your house. $10,000 minimum as an emergency fund is more like it and that's on the low end.
It's just a start. Dave says a 3 to 6 month of expenses saved should your goal emergency fund
Do these callers ACTUALLY follow the baby steps plan?
Meh
Many callers and commenters think that they have come up with a new plan that Dave just hasn't thought of in 30 years...
Dave probably disagrees with me. But I "wrote his book" before he became famous. My emergency fund is invested in AT&T, not some lousy savings account at the bank---better interest rate. And instead of an emergency fund for years, I just have a HELOC, just in case. And I do advocate for 1 credit card---THE ZERO INTEREST CARD. The caveat: pay off any thing that will charge you an interest first.
1000k emergency fund is unrealistic. It needs to be more
Do your own plan. Keep the savings but don't save anymore. Put all extra money to debt
😅 whew!!! He don’t play!!
We’ve been following your plan but.... I was making it work as CEO of family. Now he has figured it out on his own and it’s just great not having to worry about money anymore. 38 years married. What a wild ride life is! 😊
Most CEOs are idiots, do not enlighten yourself.
🔥🔥🔥
Duck duck go
In this time, removing all your liquid assets (and reducing your emergency fund) to not fully pay off a debt - wouldn't it be wiser to extend the repayment period one or two months further? Not having that extra buffer might mean having to take out more debt to deal with a $2000 repair or other event
Dave is mathematically challenged if he would rather pay off the lowest debt rather than paying off the debt with the highest interest.
Human behavior. Its been proven people pay it off faster when they have those small "wins" paying things off earlier. The kind of people that end up in a mess of consumer debt need that dopemine hit of "paid off" to keep at it. If they cared about interests rate differences of 2% they wouldnt be in the mess.
@@jessicacarnes15 finance is about numbers...not understanding that is what gets most people I to trouble in the first place.
gotta get rid of the credit card debt first imo. Interest on that is nasty
Totally agree. Who cares if the student loan is smaller? When you only have two debts and they're that small, the higher interest one makes more sense
Ken is so tiresome.
I despise the phrase "quick question!"
It’ll be over soon, keep growing that income and staying the course with limiting spending.
Even on New Years you are here to start off leeching off others.
Nooooooooo! Casey, be gone!
@@multistack1502 - No kidding and well said!
He cut her off fast lol
An emergency fund is for EMERGENCIES not because you want to get rid of a debt faster. She owes more than her fund, it would be pointless
He gone say No...
I’d add one more baby step to the mix: create passive income that you can use today and not wait until you can retire to be wealthy on your investments
If you are out of debt, your income is your investment. You invest time at your job and you get compensated for it. When you have that 15% of that money going into investments in a 401k, budget the rest of your money for other things.
@@insideoutsideupsidedown2218 unless you are in a job where you are already making over 200k or your day job gets you a huge raise every year, doing it that way will only make you wealthy by the time you get to cash your 401k, people should not be waiting that long to enjoy their wealth. That's why I think Dave should start encouraging people to figure some passive income that is usable right now.
Just follow the Baby Steps guys, follow the recipe, don't skip, don't shortcut, don't change a thing, the plan works. Happy New Year!
I'm actually all over the place lol i have 2 debts that i refuse to pay off becuz it doesn't make since one is 1.5k the interest is only $1.80 and its a $350 payment the other one is a little over 3k but my payment is $144 a month with 0 interest so no benefit of paying it off early and I'm investing 1.6k a month and saving $400 a month to build a 8k emergency fund and once grass season starts again I'm going to 2x-3x my currents saving and investment but yes i agree with u with that people should follow the baby steps and not skip around especially if they are new and don't know how to mange money the only reason i don't follow the steps is becuz i have learned so much about finance that i have disciplined and know how to mange my money
Has anyone noticed that they just repeat the same advice over and over again? lol
Dave wouldn’t have callers if people just followed the steps. People who don’t know or think they know better is what keeps his show going. He should be grateful for them.
Sounds like she's still using the cc, frequently.
So what do you do if you are in baby step 2 and your furnace goes and you need to replace it in the middle of winter?
You go into debt 😂
Idk the state you're in but in NJ you can call public service and they'll replace it and put you on a payment plan. Our water heater broke, we called them and they put us on a payment plan of 63 bucks a month for 3 years to pay it off. Bill was a little more expensive but way more affordable than coming up with almost 30000 at one time
@@michellerichardson3090 30k for that? Seems absurdly high. Anyways wouldn't that classify as going into debt which Dave is against?
Edit: based on your payment plan sounds like you meant $3k
@@raiden031 Your original comment did not specify that you were worried about getting into debt. All you asked was what one should do to replace a furnace.
@@wewhoareabouttodiesaluteyo9303 it's a hypothetical showing how easy it is to go into debt while you're supposed to be getting out of debt.
Why do people say they are doing baby steps, when that aren't following the plan at all?
What does it mean "you started baby steps two and three"? Thank you.
No break even on January 1 😁
Sustainable Professional Growth I’m thinking this has to be an old/re-listed video. I swear I watched it before.
@@zarekpirkola7095 haha, probably 😁 I guess they didn't work on first day of 2021 😂
It seems like more of these calls are people who want to hear validation of their approach. You 100% do not need to follow the baby steps. Why call in to say you are following them AND then say you are doing a different version. Then right on script the caller will "re-explain" the math that was wrong the first time it was explained. It reminds me of the old call in radio shows where folks just wanted to hear themselves on the radio.
Goodmorning JULIA!
It’s hard letting go of money saved
FBC fund and their algorithm is the best, there is no point in arguing with this
Let me argue with this.
Selective listening
At least SHE was not using spouse to pay off HER debt
They are not married. That person is not her spouse.
Dave I think I want to break up with my lady ...Dave what’s your house hold income !! Happy new year everyone!
This call just doesn’t add up. She makes 85k per year and has 14k in total debt. With that money she’s making, she shouldn’t be carrying any balance on any credit cards. She should be able to pay off any balance every month. That’s why credit cards should be used only by financial smart people. A lot she’s not saying
Financially smart people do not use credit cards...those of use that are everyday millionaires do not use credit cards.
@@insideoutsideupsidedown2218 the vast majority of millionaires have a credit card and use it, it is not even close.
@@insideoutsideupsidedown2218 well then you’re stupid. If credit cards are used correctly, they can be hugely beneficial. But to each their own.
$85k isn’t what it used to be especially living in Seattle. The baby steps work for some others it does not. There isn’t a one size fits all when it comes to personal finance.
Shes using the credit cards to pay off other stuff or buy stuff. That's the only thing that makes sense.
He also says if your job is not stable, 1000.00 may not be enough. First question to ask these days
Correct. Time and time again Dave has said when you get an questionable job/ income situation stop the baby steps and pill up cash
I think to keep the emergency fund, then with the future paychecks, try and use most of it to pay off debt whilst saving a little bit. I cannot stick to Dave's way as even 2k isn't enough for big emergencies. Plus you won't be left burnt out.
Papa Dave don't play around. 😊
9k in 2 month is no way
Tax and insurance knocked out a portion
It's always my favorite when they're like I started baby step 1 and 2 it's like no you didn't because you didn't follow the rules it's $1,000 and then pay your smallest to largest that it's not rocket science and then I quit $10,000 in savings okay the rule says you have a thousand savings and then you use the rest.
A low income family of four just received $2,400 from the government. Wonder how many will use the money to pay off debt.
Months down the road, the feeling of being debt free far outweighs any new car or fancy doodads.
Did she bother reading the baby steps before calling? Question answered.
Keep the emergency fund ffs. Dave not living in the real world.
That's how I feel. Save the fund and pay the debt off with your pay check. Its going to take her longer but she'll still have that 6000 no matter what happens
I think given the times a bigger emergency fund might be needed. She needs to look at how secure her job is now. How secure is the relationship? How many months is the $6000?
If she has an unmarried SO, her risk is greater. Yes gazelle intense. Do it by the end March..
New Years resolution for everyone work towards being debt free and or have less of it👍😊💰👍
If it ain't broke don't fix it. Many people I talk to try to tell me during consults they feel they can tweak the plan to improve or make it easier for their situation. Not true. You want real results, you need real concerted effort without deviating from the program.
I will never understand how someone can make that much and have debt. Saying that, her debt isn't even that bad. How is that not paid off...and now are you struggling to pay that off?! SHEESH! I survive on half that with a large and unfortunate car loan. Some people are beyond help.
Even a teenager can understand the recipe!
So if I am hearing and reading everyone's comments she needs to change her behavior to pay this debt.
If the debts are SO CLOSE in value, why wouldn't you pay the 20% interest one over the the 3-5% one first? That just seems like good math to me.
This is something I don't agree with Dave on. He believes it builds momentum and confidence to tackle the other debts. For me, it is always about math and percentages, I have my own drive, will power and momentum. Math is math and Dave constantly contradicts himself when he answers others problems by saying "It's math." Then advises tackling debt smallest to largest regardless of the interest rate.
Dave has said before that if you have 2 debts of similar sizes, you should indeed swap their places in the snowball to place the higher-interest one first. He does acknowledge that you should use your brain and adjust the steps as needed for your situation.
@@chrisstaub5880 Okay, I just never heard him stray from his Baby steps when people call in to question the interest rates on larger debts.
Bad advice on this one credit card debt should get paid off first the amount of intrest they charge is 3 times higher.
I did. Lol
Keep 3k emergency fund and. Pay the credit card
This is a stupid call....
why do these people call Dave Ramsey and ask questions that they already know the answer to?
Jobs can be lost on a dime. Pay off the student debt 1st as it is doable at this point. Student loans are not forgiven even in bankruptcy. Credit cards can be. Obviously she has more than these two debts she pays for. Keep what’s left after you pay the student loan in your savings. A roof over your head is a plus. Have to find a way to make a little more and spend a little less. Throw the extra on the credit card as soon as you have it. You can go online and pay it weekly.
13k in debt yet makes 85k herself? Yeah should pay that off within 2 months.
No touchy
I appreciate the general philosophy, but sometimes the lack of nuance is bothersome. I know most people here have drank the Kool-Aid but I can’t help but just question what is the interest rate on the credit card debt (I’m sure it’s significantly higher than the student debt) also aren’t people that owe gov student loans currently not having to make payments with 0% Interest? Couldn’t she easily pay off the credit card debt without touching her emergency fund and then pay off the student loan debt that’s not accruing any interest at the moment? I certainly get the philosophy and tend to agree with the sentiment but I think in some of these cases the one size fits all plan works, but can end up costing you more money.
If people were thinking logically they wouldnt rack up credit card, car debt or general consumer (furniture, payday loans, etc). Debt to get investment properties or school is more tolerable but still risky. This is about racking up small wins and seeing results which will keep you sticking to the plan. Mathematically, you are correct ,but, all of people are terrible at math. Look at the U.S. average debt per person for proof. Unfortunately emotions overrule math for people.