by JQ Adams

Created on: March 11, 2007   Last Updated: September 28, 2009

Many of us know David L. Ramsey III as an outspoken financial counselor, an author, and the radio host of "The Dave Ramsey Show." His advice is certainly several deviations from the mean of what you will hear on the radio and in the office of most financial counselors. Millions of Americans listen to his show each and every day, and hundreds of thousands of them have paid off all of their debts through his "baby steps" financial plan. The question remains, are Dave Ramsey's teachings everything they are cracked up to be?

Let's take a look at where Ramsey came from and what caused him to hold the beliefs that he now has and preaches every day. After graduating from the University of Tennessee, Dave Ramsey started a foreclosure real-estate business and did very well in doing so. Most of his purchases were done through leveraging and after the Tax Reform Act of 1986, his businesses became very negatively effected. Several of the banks soon called his short term notes to be due, and eventually the business went bankrupt. Ramsey was bankrupt had had thousands in IRS debt. He dug his way out of the mess, and vowed to never borrow money again.

He began his financial career by counseling other couples in his church after people saw Ramsey recover from such a financial disaster. He soon began offering a private counseling service and eventually came up with a set of lessons and finally self-published his first book in 1992. That same year, a local radio station, WWTN, filed bankruptcy. Ramsey agreed to host a show for free, in hopes of sharing the good information and building his business. By mid 1996, the show became syndicated and since then his business has been exploded. Ramsey has now published several books, has a nationally syndicated radio show, does several live events each year, and is working with CBS on a television deal.

Overall Ramsey offers much more conservative advice than most other financial counselors. He never suggests that his listeners borrow money, even for a house! He also tells his listeners to never file bankruptcy, regardless of how bad their situation is. Dave Ramsey also suggests his readers do not invest in gold, avoid debt management programs, buy new vehicles or get cash value insurance.

Ramsey teaches his listeners to save money for emergencies, pay off debt using his debt snowball plan, invest money in mutual funds for retirement, use educational savings accounts to pay for the kids college, do a monthly budget, teach your children

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