1. Cut up the credit cards
2. Beans & rice, rice & beans
3. Sell all the crap
4. Get rid of cable & streaming
5. Snowball the debts - smallest first
6. Live within your means
This is better
CALLER: Hi Dave, I have 200K student loan debt and cannot make payments!
DAVE RAMSEY: What are you a doctor or a lawyer!
LOL
Two things on this Ramsey list have always driven me nuts. Of course, I have never had a debt problem.
1. Keep the credit cards. I use credit cards all the time, if something goes wrong, the bank and merchant are on the hook. Credit cards are a valuable tool - and no, I don’t spend more because of them - money is money to me.
And the big one:
5. The debt snowball is the worst advice in the world. Debt is debt and the highest interest rate should be paid off first. Make a simple spreadsheet with all the debts and target the money toward the highest interest. I know he claims psychological benefit to completing a debt, but I couldn’t sleep at night if I knew I was paying off something that was 5% APR, instead of something that was 18% APR. I think I would go insane.
And Top Ramen, futon for a bed, roommates low rent area. work double shifts. bus or bike to work and do not have a kid until debts are paid.
“..1. Cut up the credit cards
2. Beans & rice, rice & beans
3. Sell all the crap
4. Get rid of cable & streaming
5. Snowball the debts - smallest first
6. Live within your means...”
^YHIS^
Yep. Worked for us when we were drowning in financial debt. The good, old Dave Ramsay approach. We stuck to it like glue for several years, but in the end: Totally debt-free, including mortgage. Now that right there is: FREEDOM!!!!
Dave Ramsey approach. Yes!
Dave...is that you???