Beat Debt - Build Wealth!
Yes, I'm hearing a lot about Dave Ramsey, quoting his words, "Beat Debt...Build Wealth"! I personally found Dave Ramey's view on taking The Baby Steps to be long term goals and I totally agree with him. These are great steps to be taking as long as you have paid your credit card debt off.
Now for the people that are in serious credit card debt, I happen to believe you need to get rid of the credit debt first. I can't imagine pursuing all of these other steps before paying off your credit cards.
Your primary goal sould be to pay off any credit card debt, since it is costing you dearly in finance charges each and every month. Look at the credit cards with the highest APR (annual pertentage rate) you are being charged, not the highest or lowest balance owed. Put that credit card bill at the top of your list and pay as much as possible each month on this card. All the other credit cards should only be paid the minimum monthly payment. Don't forget, Do Not Use these credit cards anymore or at least until they are all paid in full. Once your credit card debt is paid in full, this will be the time to start seriously thinking about the following steps that Dave Ramsey has layed out.
Now for the people that are in serious credit card debt, I happen to believe you need to get rid of the credit debt first. I can't imagine pursuing all of these other steps before paying off your credit cards.
Your primary goal sould be to pay off any credit card debt, since it is costing you dearly in finance charges each and every month. Look at the credit cards with the highest APR (annual pertentage rate) you are being charged, not the highest or lowest balance owed. Put that credit card bill at the top of your list and pay as much as possible each month on this card. All the other credit cards should only be paid the minimum monthly payment. Don't forget, Do Not Use these credit cards anymore or at least until they are all paid in full. Once your credit card debt is paid in full, this will be the time to start seriously thinking about the following steps that Dave Ramsey has layed out.
- Start an Emergency Fund
- Savings Account
- College Fund
- Mortgage - Dave recommends paying it off, my opinion on paying off a mortgage early doesn't make much sense if you have a low interest rate loan.
- Investments - Contribute to your Roth IRA's and 401K each year.
2 Comments:
Great job, dollface! I'm big-time proud of you for spreading the word about Dave Ramsey and debt freedom. I'm all about sending debt up the river. Let's get the word out! Here's looking at you, kid. www.debtective.com
Debtective,
Thanks for your comment.
Not everyone agrees with Dave Ramsey's methods of paying off debt, however the Debt Snowball method to financial freedom has given others the motivation they needed to follow through with their goals. He has helped many people to get out of debt and whatever method works for them is the most important thing.
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