Internet's first get-out-of-debt community - 122,000 members

Does it work? A guy at my husband's job said he and his wife have been doing his program and were living paycheck to paycheck. Now in the past year they have cleared out almost 50K in debt. That just almost seems impossible after living pay to pay....so how can that be? I am a skeptic.

Posted: Thu Jun 05, 2008 9:34 am Subject:

Dave Ramsey's process is useful to teaching budgeting skills. He suggests the snow ball method where you pay off the small cards first and then once you pay off the balance of the smallest card you apply what you were paying on that to the next smallest until its paid off and so on. Its not a bad process for people with decent interest rates on the credit cards who are not overextended. It does not replace credit counseling or debt settlement. As I stated his program will teach you better money management skills to help correct the underlying problem that got you in your financial pickle. I do think it would be worth getting just for that. I hope this info helps and good luck with your financial endeavors. Very Happy

Posted: Thu Jun 05, 2008 9:41 am Subject:

Thanks. I appreciate it. My husband is on the Dave Ramsey band wagon just because of what this guy at work says. I am just a skeptic and need more convincing...but I appreciate what you have said. It would be worth getting it just to help see how we got into this situation. I am so glad for this site. It helps to talk with people that have some of the same sort of situations as we are experiencing. It helps to know that you are not alone out there. Thanks to whoever invented it.

Posted: Thu Jun 05, 2008 9:46 am Subject:

I am glad I could help. Feel free to message me if you have any more questions. Very Happy

Posted: Fri Jun 06, 2008 9:35 am Subject:

I did the Dave Ramsey thing, except I didn't know about it Laughing

I decided on my own that I needed to see some progress, so paying off the smaller ones first would allow me to do that.

I took my smallest debt, did without and saved to put extra on that account and got it paid off. I then took that payment I was paying to the first, and added it to my second lowest debts' payment, and so on.

I didn't do the one with the highest interest first because it was also the highest balance, and I am the type of person that gets discouraged without seeing progress. By the time I got to the highest balance one, I had a large "extra payment" to add to that payment.

We had to really cut back, etc., but it worked for us.

I will also add like Mobile said, that I had to find our what got us into debt in the first place and what I needed to re-evaluate and look at, or we would do it again, like we had done years ago.

Good Luck..KAren Very Happy

Posted: Tue Jun 10, 2008 12:20 pm Subject:

We listen to Dave Ramsey. I agree with a lot of what he says and like the fact that he tells people what to say to creditors who are being bullies. I think people get so intimidated and end up in worse situations because of that. I think he empowers people to make them realize a creditor can't eat you and there's no reason to fear them.

Posted: Tue Jun 10, 2008 1:20 pm Subject:

I am a big Dave Ramsey fan. I do not owe any of his books or other stuff but I have listened to him on TV. You can get alot of info on his website. The thing I really like about Dave Ramsey is that he tells it like it is and does not sugar coat things. And he does not believe in credit cards at all. I would suggest you check out his website. Just google Dave Ramsey.