Can someone recommend a signature loan, credit card or home improvement franchise?

Would Dave Ramsey consider a Home Improvement loan as credit card debt or mortgage?

  • After my wife and moved into our house we got a home improvement loan for windows, it acts as a second mortgage. We have paid off student loans, credit cards and vehicle loan, saved $1,000. My question is with a home impovement/ second mortgage loan are we at step 2 or three. The plan is to pay off the windows as quick as possible, but should we start saving like step 3 according to Dave Ramsey. Thanks.

  • Answer:

    I know Dave Ramsey is a great man to many But you have to consider the interest rate you may be paying on this home loan. If that home improment loan is costing you more than 10% interest - I would pay it off. Mentally (to me) interest rates above that are part of the evil world of credit card debt.

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IF you are totalling living your life by a book then Dave Ramsey would consider this a LOAN. Ya' know at some point in life you have to put on your big boy pants and do what is best for YOUR family and situation. It is VERY easy for DR to say no credit pay cash becasu he has made his cash by selling people without CONTROL his idea of how life works. Hell yes get and stay out of debt BUT ship happens in the normal persons life!

John B

Home improvement loans would be similar to a mortgage. You are basically financing a portion of your home. That's a mortgage.

Rick B

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