"So my DW and I agreed that if we ever want to be able to enjoy our children and eventual grandchildren we need to get off this living on credit lifestyle that we Americans are so accustomed to."
There is good credit and bad credit. Many do not know how to use credit wisely.
A loan to buy property, or capital equipment for business, both of which can make you money, is an example of good credit. Loans for personal cars (that you cannot write off as a business deduction) that lose value the minute you drive them off the lot, or for the "stuff" that many people fill their lives with is bad.
Using a credit card that you pay off every month to buy groceries that you buy anyway because you hate dragging a checkbook around is good, you can get all sorts of rewards, and, let's face it, most places do NOT give cash discounts anymore--you pay the same price regardless. Where you get in trouble is when you don't pay it off every month.
I checked out the Ramsey website, and was wondering what the special attraction is. I notice several of you mentioning that you take the classes at your churches--is that the important thing, that it is religion-based in some way? I didn't notice anything that he says that was significantly different from what many other financial advice types say, so that's why I ask.
The bankruptcies mentioned are interesting. One, maybe, I can see. Two, no. The analogy to falling down while learning to ski is not quite accurate. Bankruptcy is more akin to crashing into a tree. ;-)
I like the Robert Kiyosaki (Rich Dad, Poor Dad) books. They are very quick reads, and many of them are probably at your local library (ignore some of the mean things he says about his real (poor) Dad). I think one of the biggest eye-openers is how he describes even a paid-off house as always being a liability, because you are forever paying taxes (and maintaining it, etc.) along with utilities, and so forth. In other words, while it does have some benefits, it is still a big chunk of money sitting around doing nothing, until you sell the house that has hopefully (though not always) appreciated in value. In Clovis' thread about re-financing the car loan, a good point was made about using a home equity loan since the rates are very good right now, and the loan now becomes deductible, when it wasn't before.
Just something to think about.