Dave Ramsey just trashed DVC on the air

[laceemouse]

There are many on the budget board who swear by him.

I have heard a few things about him and he has some good suggestions but just like anything else, you need to do what works for you and not just because someone on a squack box is saying to do this or that.

And let me say for the record, I really don't know if I believe DVC is a money saver. (I am a DVC Member). I am spending more now that I am going more, and I have become a DVC Room snob as I could not picture anything less then a one bedroom while vacationing. I am now spoiled even when I have to stay somewhere overnight on business I keep thinking how nice the DVC rooms are compared to a hotel.


The money I spent for DVC was not an investment. It was a partial prepayment for future vacations. I don't regret it for one second and would do it again.

Amen! If you have the money for it DVC is great, but frequent trips to WDW, no matter WHERE you stay, are not really prudent for anyone as far as finances go. Any vacation is a luxury that is not necessary. I agree that DVC re-sale is different from other t/s's, we have sold our DVC contracts (long story) and did fine, but it is still a HUGE luxury purchase.

 

[Anewman]

OK, I am a financial planner, I own 150 pts at SSR and I like Dave Ramsey.

A DVC purchase is a bad idea if you have to finance it....


I do not blame Dave for his "blanket comment"...

I understand that it is a much better VALUE if one has the cash upfront, but some choose to not dip into savings/equity/college/401k/etc...

IMO it does not take a "financial planner" to determine that it is an even worse idea to pay cash for accomidations annual vacations.

I can not speak for others that are financing, but my 2006 total payments(mortgage and DUES) is less than I paid for the hotel portion of our 2005 trip(with AAA discount). Plus we stayed in better accomidations this year for less money, we did send the difference towards the balance. The way I see it our annual trip is actually paying for the points.

 

[fgauer]

...good DVC'ers please, this can all be settled with a simple Mud Wrestling Match!

1) Everyone chips in a couple of bucks
2) We set up a Mud Wrestling match between Suze Orman and Dave Ramsey (two people who have made millions off of telling people some pretty obvious stuff)
3) Winner (Suze or Dave) gets a week in a DVC studio - with the meal plan

...they are forever changed! Problem solved!!!

HAHA!!!

 

[jimmytammy]

Just wrote him.

 

[perdidobay]

...good DVC'ers please, this can all be settled with a simple Mud Wrestling Match!

1) Everyone chips in a couple of bucks
2) We set up a Mud Wrestling match between Suze Orman and Dave Ramsey (two people who have made millions off of telling people some pretty obvious stuff)
3) Winner (Suze or Dave) gets a week in a DVC studio - with the meal plan

...they are forever changed! Problem solved!!!

HAHA!!!

 

[4formickey]

OK, I am a financial planner, I own 150 pts at SSR and I like Dave Ramsey.

A DVC purchase is a bad idea if you have to finance it. It is not an investment and should not be viewed as such. If you are not contributing to an IRA/401 K account, you should not be buying DVC. If you owe money on credit cards etc, you should not be buying into DVC. If you have to take a second job to "afford" DVC you should not be buying into it.

That said, if you are well on your way to funding a secure retirement, have no debt other than a mortgage, then DVC is a nice purchase if you like vacationing at nice resorts at Disney.

I have "moderate" net worth clients ($500,000 in investment assets) that I have encouraged to buy into DVC. Why? Many of them never take a vacation and the DVC purchase FORCES them to take an annual vacation. If you can not afford a second home, it is the next best thing. Besides, the $13,000 DVC purchase will have no effect on the eventual retirement of someone with $500,000 of investment assets already.

I do not blame Dave for his "blanket comment" because his audience is largely made up of individuals that have screwed up bad. He probably does not want anyone to go and buy because "Dave said it was OK."

so according to some people, we t are wasting our money? I guess getting my points on sale and being able to stay in very nice hotels rooms for just a small fee is wasting money? I guess if these people ran the government or some business with their excellent advice, we would not have these big deficits. We give them our money so they can tell us how to spend it. I wonder how many cars do they have and how big is their house. Do they shop at goodwill or do they use our money to pay cash for their kids education. When the oil , telephone and light companies are taking us for a ride every month, some "expert" can tell us what we are doing wrong? What we are doing wrong is listening to them.Just because we don't own the company doesn't meen we can not enjoy nice vacations once a year. A bad week in the market can wipe out $ 500,000. They will have nothing but we will still have our DVC along with our tax break for the interest we pay every month.

 

[CarolA]

This is exactly what I was thinking! Anyone that is in debt and listening to a radio program specifically geared towards reducing that debt shouldn't even consider the extravagance of a timeshare (whether DVC or not). I think his whole mantra is to buy based on necessity...not emotion.

No, but according to Dave you should PAY to join his website and PAY to buy his books and PAY to buy his special envelopes.... (The last part really cracks me up....$19.95 for envelopes labled "Electricty" "water" "groceries" etc....... You put your CASH for the month in the envelepe and PRAY a thief doesn't break in!)

As I said, all writing him will do is give him ammuntion. You will now be held up as an EXAMPLE of folks who are WRONG.. Don't waste the time.

 

[tedhowe]

Dave Ramsey is against all kinds of needless spending, execpt if he can make a buck off it.

$90 a year to subscribe to his site so he can try to sell you more needless stuff, and how much does it cost to attend a seminar where he tells you stuff you should already know.

This reminds me of an old Dennis Miller joke about the kinds of people who subscribe to the National Enquirer.

(I'm paraphrasing)
"These are the same people who respond to the classified ads in the National Enquirer, too.
-- Learn how not to be ripped off... Send $5.00 to P.O. Box 10 --
"Ooh.. Honey, lets send $10.00! We'll be doubly protected!"

 

[KatiebugsMom]

All I know is that in the end when I die I can't take anything with me, debt or no debt......So I plan on enjoying it now .........

 

[erikthewise]

Thank you, Mr. Ramsey! There is too much demand for DVC -- it's driving up the prices!

OK, now bring out the hot tar.

 

[4formickey]

It seems that the real way to make money is telling others how to spend theirs!

 

[graygables]

All I know is that in the end when I die] I can't take anything with me, debt or no debt......So I plan on enjoying it now .........

Us, too.

Things like "can we afford it", "how do you budget your dues", "do you think I'll pass the credit check", etc.? If you have to ask any of those questions, then DVC probably isn't for you

Just b/c someone asks about budgeting dues or credit checks doesn't mean that DVC isn't for them. We hit some serious financial strains back when 10yo DD was born, we had no maternity coverage (I wasn't suppose to be able to have anymore children), DH had been out of work for 4 months (and dumbly refused to get unemployment...whole other story), and she wound up having medical probems that were considered "pre-existing conditions" (how a newborn has PEC, I don't know ) It takes YEARS to overcome credit problems and NOT just the magical number 7 that everyone talks about. We opted NOT to file bankruptcy, since we felt they were our obligations, but that decision has haunted our credit ever since. Even though we are mostly recovered, our credit rating is still a mess, but does that mean that we don't "deserve" DVC? I guess what bugs me is other people telling me how I should spend MY money. Each person's situation and life experience is unique and until you've walked a mile in their shoes, one shouldn't judge how they handle their finances. I feel like I should have "I am more than my credit score" tattooed on my forehead sometimes.

 

[kimberh]

Back in 1990 we bought a timeshare in Tenn. that we paid $5000.00 for. It has been paid off for years and I have traded it through RCI all over the world. I just booked 2 two bedrooms in 2008 for Grand Cayman. WE love Grand Cayman. I am using my Delta Sky Miles to book the Air for 10 people. I feel we have made a sound investment.
Now to DVC, I probably waited too long to purchase but I finally did. I have paid a small fortune for the deluxe hotels that we have stayed in. Now, I am in the process of buying #3. We are a large family and I need the points. We just came home from a stay in a 2 bedroom at VWL. I paid for all the food with the Disney Rewards card. I have to do what is best for my family.

 

[MyGoofy26]

No, but according to Dave you should PAY to join his website and PAY to buy his books and PAY to buy his special envelopes.... (The last part really cracks me up....$19.95 for envelopes labled "Electricty" "water" "groceries" etc....... You put your CASH for the month in the envelepe and PRAY a thief doesn't break in!)

Quick! Someone do the math! Could he make enough selling a "DVC payment" envelope to make it worth his while to give DVC the thumbs up?

 

[Olaf]

I feel like I should have "I am more than my credit score" tattooed on my forehead sometimes.

I'm sorry about the financial problems you've had, but your beef is with the system, not me. Is it a perfect system? No, but lenders have to have some way of quantifying risk.

I stand by what I said. Those questions are red flags. Are there exceptions? Of course, there always are. As has been stated many times previously in this thread, DVC is a luxury, a huge luxury. No one "deserves" it. They earn it. The money we spend on DVC is mad money. It's money that we've decided to spend on our entertainment, after paying ourselves (savings account, investments, etc.). We do not fool ourselves. DVC is not an investment. Since we've increased the number of times we go to WDW since buying into DVC, we're not saving any money.

And the statement, "You can't take it with you"? True. But most of us are going to live well into our 80's, and you don't want to leave a mess for your family either.

 

[Melrosgirl]

The problem with most timeshares is people buy them on impulse and then never get around to using it. My father is a perfect example of this. Bought a $20,000 time share in Mexico someplace. Years ago. Never has used it. He can't get rid of it. No one wants it. It's really bad.

You must 1) be able to afford a timeshare and 2) use it.

 

[4formickey]

Back in 1990 we bought a timeshare in Tenn. that we paid $5000.00 for. It has been paid off for years and I have traded it through RCI all over the world. I just booked 2 two bedrooms in 2008 for Grand Cayman. WE love Grand Cayman. I am using my Delta Sky Miles to book the Air for 10 people. I feel we have made a sound investment.
Now to DVC, I probably waited too long to purchase but I finally did. I have paid a small fortune for the deluxe hotels that we have stayed in. Now, I am in the process of buying #3. We are a large family and I need the points. We just came home from a stay in a 2 bedroom at VWL. I paid for all the food with the Disney Rewards card. I have to do what is best for my family.

according to the experts you are wasting your money, see what they know!

 

[canda]

I think it is funny that most posters have said that Dave is an idiot for not checking into DVC and relying on third hand knowledge of timeshares to voice his opinion.
everyone who gave that response has just done the same thing. the OP is did not quote Dave and made this post just to feed the trolls.

 

[CarolA]

Dave has gone on record as being anti timeshare so while this may have been a troll I have heard him do it. (We used to listen just to see what "payoffs" he was taking this week. Dave loves to "recommend" resturants in Nashville. YEAH $200 meals that HE didn't pay one penny for but YOU should race right out and eat there after he berates you for taking a car loan at 0.%)

 

[Anewman]

I think it is funny that most posters have said that Dave is an idiot for not checking into DVC and relying on third hand knowledge of timeshares to voice his opinion.
everyone who gave that response has just done the same thing.

The difference is that we did not bash EVERY financial advisor, just DAVE.
We did not label them ALL as "preying on idiots" just because Dave does it.