Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
We are on a fixed income and I have been paying off the bills, but don't have a bunch of money hanging around and I had two unexpec ted trips to the dentist and another one, 'planned' but before our monthly checks arrive that has to be paid. Also an unexpected furnace repair. But the good things is I have been whittling the bills down and hopefully it won't be so bad like it would have a couple years ago.
I've been debt free for a long time now and now I'm tackling my mortgage I got 85k left in it... people on the internet always say to not pay it off but I dream of having a paid off home! Watching these gives me reassurance
I Agree 💯 this what I'm in the process of doing I owe $72,000 so I'm hitting my principal may every year $1200 and now I have more income coming in a month I'll put Extra on my principal a month and invest the rest in my Roth IRA so let's do it. @@b.l.wilson9724
Doing the credit card balance transfer really helped me as moved my card to a card that was offering 22 months interest free so just done it to ensure that every payment I made was making a difference without being charged interest and ONLY done this to pay off the card quicker. Now it’s cleared I’ve closed the account and no longer have credit card debt.
@@halliemoyer agreed. We are still snowballing with no interest and don't have a card for that account even. I believe most of their philosophies but for some I do my own things but with gazelle intensity of course 😂🥳
I think Rachel really meant, if you do a balance transfer, keep hitting it with gazelle intensity. I took her point to mean that people don't pay it off as fast, if they have 0 interest.
1. Debt consolidation 2. Debt settlement 3. 401(k) loans 4. Paying off highest interest 5. Home equity line of credit (HELOC) 6. Not changing your lifestyle 7. Continuing to invest 8. Not giving 9. Credit card balance transfers 10. Waiting on someone else to pay off your debt
The credit transfer helped us make real gains on one of our credit cards. We moved to a 0% interest so all of our payment went towards principal. Before that we were taking 2 steps forward and one step back with interest. If you’re intentional and stay intentional, it could be a game changer and it was more motivating.
You'll never understand giving until you have a deep personal relationship with God. Until you know Him deeper than your closest friend and confidant, giving to gain will never make sense.
You are correct. Knowing God isn't required to be moral. But to truly understand why the laws of morality work requires knowing the writer of those laws. @pdxmusl1510
I love your comment on an open hand…. I am aggressively paying off my debt but I am also helping a friend. I find it rewarding but challenging simultaneously.
I am asking God if I should continue to give while getting out of debt. I am so glad I bumped into this video and answering my question. I think God used you to answer me. Thank you.
Yep. I prefer to donate time rather than money. Most charities hardly use any of the money you donate to the actual cause. So my few thousand here and there I can donate really doesn't amount to much. You kinda need either 20 million people donating $1 or one person donating 20 million. Since I don't have millions to give. I feel donating my time is better. It's also harder to abuse.
I have been carrying credit card dept for no reason other than I didn't want to use my savings. I never thought about how it affects my thoughts towards my debt. I am paying off everything except my student debt, which will take more time. Thanks!
I've balance transferred around $20k of consumer debt to 0% interest cards for a set number of months. Assuming you've broken the habit of living off of credit cards and are now much smarter with your money, balance transfers are a great way to save thousands of dollars in interest payments for anyone that finds themselves in my shoes. Thankfully I can now say I'm credit card debt free. One size does not fit all when it comes to personal finance but I still love what you guys do.
Same. I just transferred mine to a 0% interest for 18 months credit card. Saving $200/month in interest is life changing! I was paying off between $350 and $500/month on just one of the cards and still paying the same interest because of rising rates. 🙃 As long as I put the card in a file or cut it up and stay paying off with the same intensity and that’s a $2000 savings (for me).
Yup .. they are a huge help. I did the same and then I wanted to baby step my way out of paying this new 0% interest credit card. I was diligently following my repayment plan but then life struck. Life didn’t just give me the lemon it gave my the sack 😢 Had to stop my payment plan, lost money, and on top of that had to pull out another loan 😭 So now I gotta baby step all of this ..
I love all the 9 advice except the balance transfers...Two banks gave me 0% interest in 18 months so I split into two my balance from a high interest one and it really really helps! Instead of paying interest we were able to keep an eye on the goal to pay my debt before the 18months end...The first one was closed and we are near in getting debt free... We depleted our emergency funds when I got pregnant and have so many complications which I was deemed high risk and could not work. Thankfully my daughter(oh yeah,two kids and no more) is healthy and we were past that. We live below our means and we are simple family, it was just that whirlwind of chaos that got us with debt. Seeing my kids I know in my heart even though we came to this situation, I would not trade the world...Oh I am excited to shout to the world that we are debt free!
I think that what many are missing here regarding the use of a balance transfer to pay off higher interest rate card debt, is that many people who don't have discipline will then keep using the card(s) they just transferred the balance(s) from and end up with more debt. If you immediately close the old accounts or can tell yourself to leave those alone, then sure it can be a useful option.
So we are working on the first credit card. Shopping only on one day. Using grocery list. Not going out. Creating dates at home. We are still paying 10% tithes to our church first. Living on a budget. We have made changes in our lives and living frugally. Thanks for your video.
My employer would make a $500 donation where I volunteered. I did it for Habitat for Humanity, my church, my pet shelter & church camp! It was fun & easy and definitely a Win/Win!’
Giving is a Correct Principle. I testify of that. Being generous has blessed us tremendously. Right now we got a job that we don't have to pay neither rent nor bills in the best neighborhood and also the kids tuition in private schools. You have to live it to believe it.
My dad is recommending Debt settlement, but I have had bad experiences with two different companies - one just took my money and the other one told us that we needed a new bank. I did do two 401K loans and they did help me out and I paid them back before I left the company, but I agree about it being a bad idea. Love your videos :)
I tried for years paying off debt by paying the largest interest rates. Did not work so I reversed it and it worked wonderfully and progress was seen and encouraging.
Using Heloc with low interest rate to pay credit cards with high interests rates is a smarter way of paying off debts faster and cheaper. I did it and it worked. You just have to be disciplined to make the monthly payments. Goodluck 🙏
Unfortunately, the HELOC was my only way to keep afloat last year. I was reluctant at first but it was either that or move my family into a 5th wheel so we did what we needed to. Now we're actually making some progress with our debt and should be free of everything but the mortgage in 4.5 years or less depending on when I can go back to having full-time work.
I started my debt free Journey 2yrs ago with Dave Ramsey snowball method so grateful I have No credit card debt, cars all paid - now working on my Mortgage
Motivation, morale and small wins via the snowball method is by far the best way of doing debt payoff. If you look at the rough numbers it doesn’t make sense financially, but motivation and morale is infinitely more important than anything else
We did the HELOC not once...but twice.. ended up with more debt each time. It really is a behavior problem. I feel like I need to suffer and feel the pain of paying off everything to help this tough lesson sink in.
I did a 0% balance transfer and became debt free. I would've paid an additional 5K (approx) worth of interest if I didn't move the funds, and it would've taken longer to pay off due to the interests increasing the balance every month. It doesn't make sense to follow her advice by avoiding the 0% balance transfer, as long as you can pay it off before the promotional period expires.
I didn’t go for Easy I went for Simple I had a 10%apr CC that I got as a teen So I consolidated everything into this one, not to get a lower payment, but to get a consistent payment This allowed me to save a consistent amount to pay it in full in one go
Giving! Yes generosity is about the character not about the circumstances. The poorest people sometimes give the most. And bless others and make the biggest impact! Being generous is very important!!!
I really appreciated the part about giving. We're still paying off debt and still give 10% to our church, as well as setting aside a little each month for giving in other ways. Sometimes I just think we could get through it a lot sooner if we took that money and put it towards debt every month. But I know giving is the right thing to do and really does shape our character. Thanks for the encouragement and reminder.
Well done! I’m in a similar situation, & titheing to put God first. It’s easy to think that tithe money could pay off debt faster… but God makes a way, & I keep improving my money mindset
I did the debt avalanche (highest interest rate first). Totally worked for me. Not everyone is the same. You said debt snowball it is the "most efficeint way" to pay off debt, but even you admitted that isn;t true. It may be the most effective for many people (based on psychology, NOT math), but it is most certainly NOT the most efficient.
@@pattylott9626 like I said, if you need that boost… do what works for you. For me… once I decided to get debt free, I got the biggest buzz over wat hing the monthly interest charges drop and knowing more of my dollars were going to actually paying down debt.
The reason its most efficient is because you eliminate payments, thus increasing the amount you have in your margin to put towards the next. This helps you pay it faster without increasing your income. The Avalanche tends to work best when you have a very big "shovel" or high numbers of dollars to put towards your highest interest debt and pay it quickly. It's an uphill battle against high interest if each payment is only 2 or 3 % of the balance
It would be useful to study whether those that consolidate their debt to a lower interest rate actually pay off their debt faster. I don’t think so as I think it might make them feel less pressure to be intentional.
The main issue with debt consolidation is that what those companies do for you is something you can do for yourself. Granted because of the relationship with the credit companies they may get better results sometimes. But you can negotiate better terms yourself. And you don't have to pay there fees. The other issue is you effectively pay interest on it longer. Mathematically sometimes consolidation is better though. What the main reason why Ramsey wants you to pay it off yourself is because if you cannot... the rest of his steps will be harder. It's more about teaching discipline than getting you out of debt.
I have used the credit card balance transfer a couple times to lower the interest i was paying. I transferred a 10k CC last year and saved thousands in interest.
@@lizrozon6308 Oh, it’s basically applying for a new Credit card. Wells Fargo had a 18-21 months of zero interest introduction rate. When they approved me I called them and asked to do a balance transfer. They charge 3% but it’s worth it since you don’t pay interest for 18-21 months, and can tackle it easier. It’s important that you close your old card once you pay it off. Or else you will want to use it again and go much deeper into debt. B/c now you have an extra card. I also called the company that had me at 33% and told them I was having a hard time financially, and asked if they could decrease my rate for a few months. They got it down to 18% for 6 months, but the card is also locked and not usable. So that helps not to be tempted to use it.
I kind of disagree with the transfer to a new card if the debt isn't too large. I transfered my credir card balance to a zero interest for 12 months card, divided the amount by 12 and that was my new card payment. It stops the endless fees that make it so difficult to pay off! Of course I still have to be disciplined to make sure I make that payment every month and I didn't use the card until it was paid off. I felt like it helped at least stop the bleeding and helped my payments actually put a dent in my debt. But you can NOT miss a payment.
...I did want to add thank you for all you do to help people get out if debt. I didn't learn how to manage my money growing up and it was a painfully long lesson. I am glad that people like you are willing to share what you know to help the rest of us work through it.
I tend to agree too but.. if your paying it off aggressively.. you might not be saving as much interest as you think. I did this too for mine though. So I do in general agree. But.. Say you have 10k in credit cards. Payment is probably around 300. Interest is 225. If your able to throw 2.3k a month on this thing. Your paying it off in around 5 months. Your not paying as much interest as you think and going to a 0% card... while for sure helping and probably more money efficient. Isn't saving you that much. I ran through my hypothetical and it's approximately $650 in interest @ 27% would all you'd be saving. Again. It's not nothing. But it doesn't change how long to payoff. So it really just comes down to how important that 650 is. When I did mine. It was extremely important to me. So yeah. I used 0% cards.
I’m having a hard time supporting my family and I on ssdi. $41000 a year. My wife wants to get a job but I have a lot of medical issues, and she takes care of me and takes me to appointments. Our son is a sophomore in high school and is getting a part time job this summer
$8k is what I have. It’s been lingering for 10 years and still causing havoc in my life. I haven’t paid a dime or been in touch and the accounts have been closed/charged off in collections. I don’t know who owns the accounts now but I’m finally in a position to get this debt out of my life. After the $8k is paid I can scream I’m debt free until I purchase a home, then I will have a mortgage and that’s it.
@@toxictrexx7716 yup! Got me out of around $6000 debt in less than 2 years. I searched around for companies like that and they had the best reviews. I found them extremely helpful.
I love you guys!! I also understand and mindset of giving… but it doesn’t make sense to stop investing but continue to give. To me those are in the same category
I did the consolidation about 10 years ago and it actually wasn’t bad. It was about 14k in money owed. When they do this you no longer pay interest on your monthly payments to the company you only a flat rate. Im sure other companies may be different but my payment plan was for 2.5 years
I’ve done the debt consolidation and the balance transfers, but it didn’t help. I’m doing the debt snow right now and it’s working. I paid off $1,750 of credit card debt this week.
Stop Investing yet Keep Giving. That’s seems counterintuitive. I understand it may be Character issues, but that has nothing to do with debt or building wealth. Plenty of bad people that are wealthy and debt free. I’d rather give once I fixed myself first.
Debt settlement companies are a rip off. When I was in my early 20s I tried using a company and after 8 months of absolutely no progress, I cancelled the service and just knocked out my credit card debt as she said . . . starting from the least to the greatest.
I owe you an apology. In a prior video I referred to you as condescending…my apologies. You’re right. I’m an idiot, but I will follow the baby step plan. Thank you for the help.
For me paying off the one with the largest balance is how it’s going to have to be. The interest rate is horrid, and paying hundreds in interest each month is sickening. The lowest balance one is getting the minimum payment and I’m throwing it all at the highest balance one to hopefully get lower interest with a lower balance.
They preach 100% about the debt snowball (understandably), but for people with discipline and a logical mindset, the debt avalanche (highest interest rate first) will save you money and get you out of debt considerably faster.
thank you so much for addressing these . There have been 3 or 4 that I have actually considered before and I am glad I chose not to after hearing your views. Thanks Rachel!
This is a great video, but I have to say something about your sponsor Christian Health Ministries. It may be a great plan if you have no previous health conditions but if you have any, this is not the plan for you. This was sold to my parents as if it was health insurance. It is not. It says it right on the card. They aren't obligated to pay and if you have a history of anything it is not covered at all for the first two years of the plan. My dad had a history of "fatty liver" (super common, right?). He found out while he had the insurance that he had decompensated liver cirrhosis and needed a transplant. None of it is covered due to that fatty liver diagnosis. He had NO clue he had liver issues. He knew he was overweight, but he didn't know he was in liver failure. We had to wait for open enrollment to get real insurance while zero of his treatments were covered with this plan. It was the longest year of our lives. He couldn't even get his medicine paid for.
Good advice - yes, If doing debt settlement do it yourself - I had to as husband got sick - I got 30% on 2 cards so far - larger balances - will be working on one larger and smaller ones within a year based on hardship. The original creditors have been easy to deal with so far.
I paid off my debt with a personal loan. It worked for me. It was a 5 year loan....paid off in 22 months. Less interest, not revolving credit and the fresh do over start is what I needed. Will it work for everyone...no.
I'm 41 and I've done it all, now very close to paying it off. 0% is how it started and 6 yrs later I still had tens of thousands in 0%, just have 2 car loans left.
Thanks Rachel, to be honest I never ever had any debt or took out any loans until recently, the main reason I took out the loan was due to the fact that I got scammed on the Internet paying some guy on PayPal. After that I went on a downward spiral of taking out loans, also I have a student loan that I'm currently paying off so I am in the process of watching your videos and trying to get back to where I was before, I mean I used to have money left over and wasn't living paycheck to paycheck. I'm still struggling financially and still want a better life so I can support my whole family.
I can't stand the student loan forgiveness! 😤😤😡😡 I did it years ago and the fact that there are people that take the money out and never pay it back drives me insane!
The only thing I don’t agree on is the balance transfer. I did this and had no interest for 24 months which made it a lot quicker and easier to pay our balances down, considering it was our top priority to be debt free and we stuck with the snowball it was a good move.
I did a balance transfer with 2 of my credit cards for 0% interest for 18 months. The interest was initially so bad. The cost to transfer was just 1 month of interest so it was a winning situation for me. I'll be done paying it off earlier than 18 months and it's nice to see my balance not increase after a payment.
Debt free, mortgage free, 35 years old, with a booming income property…. Completely self made, no parents, no banks and no partner helping me. Thanks for renforcing the good habits I had developed while being impoverished.
I used 401k loans at 4% interest, credit card transfers at 0%, and gambling on horse races to eliminate $120k in 2 years. I also kicked both my kids out of the house. They were 22 year old leaches. One got a real job and the other is the army's problem now. Worked great!
I understand the giving idealism behind growing wealth. I have always been blessed to have enough where I'm handling my finances and if ever anyone needed help financially, I was able to bless them with that help. Some how, some way I always get the money back times extra. Sometimes from the person I helped or by other means, but it's always came back to me. It's true. Now, it is important too not to think you can be taken advantage of so my rule of thumb is, I helped you once, you pay me back I can help you again. You don't pay me back, that's all the help you get. I give without expecting it back, but I also am mindful that I'm not being taken advantage of.
I need to quit buying unnecessary things. Handbags are my weakness. I try an justify I need this bag or that wallet bc it’s so pretty or this shade of pink is to die for. NO! I have enough!!! I need to stop. It’s like an addiction. I’m staying strong tho. I’m paying these cards off! I’m dodging these handbags left and right 😂 wish me luck and good luck to y’all!! 🍀
HELOC is one of the best ways of reducing the debt burden. Think you have not taken a HELOC and continue to pay what you would have paid at the first place. It helps in reducing the EMI while helping in repaying the loan faster. Yes, it means I am risking my house, which actually be used as a source of motivation to get out of debt. Combine all the loans except a home mortgage into a HELOC and then treat as of it never happened. I did take help of a HELOC and was able to get debt free 39 months earlier compared to had I not taken the HELOC.
I think getting into debt and buying things is fixing our feelings,(Or trying to!) I know when I am feeling down I find myself on eBay looking to buy something I don't even need lol, If we are not feeling happy and content we find ourselves buying "Stuff", It's hard, because waiting a month for next pay day without any treats is hard right?
Also don’t put to much onto your credit card at once when making payments when thinking I usually pay say 50 a check then you decide to do 150 to pay off faster then you run out of money down the week and have to use the credit card again .. be realistic with your payments and do 75 or 100 even and be real with yourself so you don’t go backward not forwards .
What you said is true about owing your 401k if employment stops while having a balance but there’s also no credit pull for borrowing your own money and the interest paid goes back into your portfolio. Fidelity investments charges a poultry $35 processing fee per loan. Why pay a bank interest when you can pay it back to yourself?
The biggest take away I got from this is being accountable and doing what you have to do to get yourself out of debt. Regarding boneless transfers, I think it’s okay as long as you don’t rely on that and use it as a solution as you mentioned. I have one more credit card to pay off and the interest is ridiculous so I absolutely will be transferring it to a, zero interest card so I can pay it off quicker. This month alone I was hit with over $300 just on interest alone from that card.
Yeah same here, however It depends on how well you've adjusted to the debt focus. When I did it, it was because I looked into all the costs between the options at at the time the extra hundred bucks was nothing compared to the interest. AND I knew for a fact, without any doubt, that I could pay everything off within a few months. For people who do it to pay years on the balance thinking it buys time... not the best.
Great video. I made the 401K loan mistake years before taking FPU. Took me 2 years to pay it off and then I was finally able to start looking for a new job. Ugh. Just remembering that makes me ill.
you NEVER turn down free money unless you are not meeting your current obligations with your current income. Always go for the company match before funding that emergency fund and becoming debt free.
Here is one thing I've discovered that is so important, that is not mentioned in this video: The biggest mistake 95% of people make is not paying yourself first! Shout out to Rachel for making this video and handing out helpful tips. All of what she said is 100%. One thing that many people fail at and it's why many people get into debt in the first place! Paying yourself first does not mean you spend a portion of money on yourself! It's the complete opposite of spending! Did you know, you can save the amount of money you owe, to yourself, faster than you pay off large amounts of debt? Paying yourself first, it's all about building options for you! If you take on a part-time job to pay off debt, you might as well use that part-time money and keep it for yourself first. When you accumulate the same amount of money you have to the same amount of money you owe, now you have your freedom ticket! Snowball effects is the only strategy used if you do not have any other source of income or cash flow. When you put all of your hard-earned money into bills first, you'll be stuck in a cycle!
omg!! I didn't even know these things excited! I only have my car loan that I plan to pay off this year woohoo! I am going back to school and I am kind of scared of those payments
I took out a 401-K LOAN, not a withdrawal. The interest is low and a flat rate, not revolving like credit cards. IF I leave my employer or get fired, it would be treated like a withdrawal and I will be taxed for that amount. Using this loan (that I pay back to MYSELF) to pay off 3 high interest credit cards will save me over 10K in interest over the 3-year term. There is no way the amount of the loan was going to make that much money in my 401-K over the next 3 years. And I'm still contributing....I don't want to leave the company's match money laying on the table.
I have to disagree with you on the snowball versus avalanche method. Yes, the snowball method makes you feel more motivated because you see things getting paid off quicker, but in the long run, you spend more money and interest will use a snowball method versus the avalanche method and you actually pay off your debt faster when you use the avalanche method.
It doesn't matter what you think about it. It's already been proven the snowball method works way better in terms of paying off debt. Moat people just want to get out of debt, they aren't trying to mathematically maximize. The snowball method has been shown to get more ppl out of debt period.
@@Benedict00_ItchyManko I agree with you but when it comes to saving money and stuff paying off high interest first is yes less motivating but in the long run, you save money snowball is more motivational also yes I agree with you on that but if you’re looking at trying to save money in the long run avalanche is better than snowball
@@SOUTHWEST_PILOT Yeah i agree also, but ppl arent looking to save money, people struggling with debt are looking to get out of debt first and foremost. Getting out of debt has been proven to work way better using the snowball method.
Buying things the same as cash.I got my bedroom set. Queen size bed the frame headboard with storage at the end drawers. Two night stands. Full blown dresser 6 drawers. The high boy 5 drawers. Financed it with littlest down. The price is $3,600.00. I made 12 payments one year only. Then I went in payed the balance off 100%. The cosof y doing this was $ 2600.00. I got it 2018. Now 5 years later. I'm enjoying this with no future debt. The lamps 2 with the shades I got at a thrift store. It took one year looki, g taking my time paided cash for them $35.00 each. Looking on line these same lamps were $300.00 each. The mattress was cash. I am blessed to have completed my bedroom not creating debts. Charging on credit cards. I leveraged out using there offer same as cash. I planned out everything and have the things I'm life I need as the saying goes living way below your means lovering changing your life style being frugal really works. Love this pod cast not trying to make mistakes by making mistakes it can enslave you to the lenders. Take a deep breath, plan things out don't just jump in, and you will do so much better over the long term. Joel Alm
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
Thanks to the baby steps I’m debt free since yesterday, 🎉except the mortgage
Congratulations!! I can't wait to make my debt free scream!
Yehhhhhh @Joanne
Way to go!
Congratulations!!
Woo hoo!! Congrats!!!
🎉 congratulations..
I rewatch these videos to use as encouraging reminders when I feel like I’m struggling. Thank you
We are on a fixed income and I have been paying off the bills, but don't have a bunch of money hanging around and I had two unexpec ted trips to the dentist and another one, 'planned' but before our monthly checks arrive that has to be paid. Also an unexpected furnace repair. But the good things is I have been whittling the bills down and hopefully it won't be so bad like it would have a couple years ago.
I've been debt free for a long time now and now I'm tackling my mortgage I got 85k left in it... people on the internet always say to not pay it off but I dream of having a paid off home! Watching these gives me reassurance
There’s something about having a paid off home. It belongs to you. I’d say keep going you’re almost there!!!
Im guessing these people owe 500k
😅😂@@pompommania
😅😂😂@@pompommania
I Agree 💯 this what I'm in the process of doing I owe $72,000 so I'm hitting my principal may every year $1200 and now I have more income coming in a month I'll put Extra on my principal a month and invest the rest in my Roth IRA so let's do it. @@b.l.wilson9724
Doing the credit card balance transfer really helped me as moved my card to a card that was offering 22 months interest free so just done it to ensure that every payment I made was making a difference without being charged interest and ONLY done this to pay off the card quicker. Now it’s cleared I’ve closed the account and no longer have credit card debt.
We have done the same. It pays off faster with no interest or 1% even....our balance is going down faster than our old credit card that was 22% 😂😊
This is a point I don’t understand. If I bring my interest rate to zero and stay diligent with paying it off, why wouldn’t I?
@@halliemoyer agreed. We are still snowballing with no interest and don't have a card for that account even. I believe most of their philosophies but for some I do my own things but with gazelle intensity of course 😂🥳
I’m happy it worked out for you but it didn’t for me I’ll never do it again
I think Rachel really meant, if you do a balance transfer, keep hitting it with gazelle intensity. I took her point to mean that people don't pay it off as fast, if they have 0 interest.
1. Debt consolidation
2. Debt settlement
3. 401(k) loans
4. Paying off highest interest
5. Home equity line of credit (HELOC)
6. Not changing your lifestyle
7. Continuing to invest
8. Not giving
9. Credit card balance transfers
10. Waiting on someone else to pay off your debt
🐐
Doing the Lord’s work
MVP
These seem like the 10 commandments, The first 5 are focused on your relationship with God and the other five are about your relationship with others.
Mahalo nui for list 👍🏽
Getting rid of debt is a guaranteed return. Love it!
Unless you pay off negative real interest rate loans first, as suggested 🙃
Avoid emotional spending
That's right! Discipline is the key.
THIS!!!!
This is the hardest part right here 😅
This the one!
The credit transfer helped us make real gains on one of our credit cards. We moved to a 0% interest so all of our payment went towards principal. Before that we were taking 2 steps forward and one step back with interest. If you’re intentional and stay intentional, it could be a game changer and it was more motivating.
Yeah I didn't understand that step whatsoever. Balance transfers to 0% cards are no-brainers, ESPECIALLY if there's no fee.
You'll never understand giving until you have a deep personal relationship with God. Until you know Him deeper than your closest friend and confidant, giving to gain will never make sense.
@h.m.bradley2690 who is your comment in response to?
@h.m.bradley2690
A god is not required to have morals. Ethics. Altruism. And to just generally be a good person.
You are correct. Knowing God isn't required to be moral. But to truly understand why the laws of morality work requires knowing the writer of those laws. @pdxmusl1510
Thanks to the baby steps I am out of debt except for the mortgage (and that’s soon to happen)! There’s such wisdom and common sense in the baby steps!
I completed BS1 and just paid my first debt. It feels good already
BS1?
@@PeaceNinja007 build up a $1000 emergency fund
@@jaceryan3708 Is that what BS1 stands for?
I love your comment on an open hand…. I am aggressively paying off my debt but I am also helping a friend. I find it rewarding but challenging simultaneously.
I am asking God if I should continue to give while getting out of debt. I am so glad I bumped into this video and answering my question. I think God used you to answer me. Thank you.
The more you give is the more God will bless you.
You can give your time also. Charity is not just money, volunteering is important.
Yep. I prefer to donate time rather than money. Most charities hardly use any of the money you donate to the actual cause. So my few thousand here and there I can donate really doesn't amount to much. You kinda need either 20 million people donating $1 or one person donating 20 million.
Since I don't have millions to give. I feel donating my time is better. It's also harder to abuse.
I have been carrying credit card dept for no reason other than I didn't want to use my savings. I never thought about how it affects my thoughts towards my debt. I am paying off everything except my student debt, which will take more time. Thanks!
I've balance transferred around $20k of consumer debt to 0% interest cards for a set number of months.
Assuming you've broken the habit of living off of credit cards and are now much smarter with your money, balance transfers are a great way to save thousands of dollars in interest payments for anyone that finds themselves in my shoes. Thankfully I can now say I'm credit card debt free.
One size does not fit all when it comes to personal finance but I still love what you guys do.
Same. I just transferred mine to a 0% interest for 18 months credit card. Saving $200/month in interest is life changing! I was paying off between $350 and $500/month on just one of the cards and still paying the same interest because of rising rates. 🙃 As long as I put the card in a file or cut it up and stay paying off with the same intensity and that’s a $2000 savings (for me).
Yup .. they are a huge help.
I did the same and then I wanted to baby step my way out of paying this new 0% interest credit card. I was diligently following my repayment plan but then life struck.
Life didn’t just give me the lemon it gave my the sack 😢
Had to stop my payment plan, lost money, and on top of that had to pull out another loan 😭
So now I gotta baby step all of this ..
It is very chancy.
I love all the 9 advice except the balance transfers...Two banks gave me 0% interest in 18 months so I split into two my balance from a high interest one and it really really helps! Instead of paying interest we were able to keep an eye on the goal to pay my debt before the 18months end...The first one was closed and we are near in getting debt free...
We depleted our emergency funds when I got pregnant and have so many complications which I was deemed high risk and could not work. Thankfully my daughter(oh yeah,two kids and no more) is healthy and we were past that. We live below our means and we are simple family, it was just that whirlwind of chaos that got us with debt. Seeing my kids I know in my heart even though we came to this situation, I would not trade the world...Oh I am excited to shout to the world that we are debt free!
I think that what many are missing here regarding the use of a balance transfer to pay off higher interest rate card debt, is that many people who don't have discipline will then keep using the card(s) they just transferred the balance(s) from and end up with more debt. If you immediately close the old accounts or can tell yourself to leave those alone, then sure it can be a useful option.
I have no debt and I’m still watching this 😂
Me too. I watch Ramsey solutions videos just for the pure entertainment value.
yeah i especially like stories of people up to their eyeballs in payday loans and timeshares
Lol same!
Meanwhile I'm mortgaged to the hilt 🥲
Same
Give a little until you can give a lot. I love this!
So we are working on the first credit card. Shopping only on one day. Using grocery list. Not going out. Creating dates at home. We are still paying 10% tithes to our church first. Living on a budget. We have made changes in our lives and living frugally. Thanks for your video.
My employer would make a $500 donation where I volunteered. I did it for Habitat for Humanity, my church, my pet shelter & church camp! It was fun & easy and definitely a Win/Win!’
Giving is a Correct Principle. I testify of that. Being generous has blessed us tremendously. Right now we got a job that we don't have to pay neither rent nor bills in the best neighborhood and also the kids tuition in private schools. You have to live it to believe it.
My dad is recommending Debt settlement, but I have had bad experiences with two different companies - one just took my money and the other one told us that we needed a new bank. I did do two 401K loans and they did help me out and I paid them back before I left the company, but I agree about it being a bad idea. Love your videos :)
I tried for years paying off debt by paying the largest interest rates. Did not work so I reversed it and it worked wonderfully and progress was seen and encouraging.
Using Heloc with low interest rate to pay credit cards with high interests rates is a smarter way of paying off debts faster and cheaper. I did it and it worked. You just have to be disciplined to make the monthly payments. Goodluck 🙏
Unfortunately, the HELOC was my only way to keep afloat last year. I was reluctant at first but it was either that or move my family into a 5th wheel so we did what we needed to. Now we're actually making some progress with our debt and should be free of everything but the mortgage in 4.5 years or less depending on when I can go back to having full-time work.
Heloc is not for everybody
I started my debt free Journey 2yrs ago with Dave Ramsey snowball method so grateful I have No credit card debt, cars all paid - now working on my Mortgage
Motivation, morale and small wins via the snowball method is by far the best way of doing debt payoff.
If you look at the rough numbers it doesn’t make sense financially, but motivation and morale is infinitely more important than anything else
We did the HELOC not once...but twice.. ended up with more debt each time. It really is a behavior problem. I feel like I need to suffer and feel the pain of paying off everything to help this tough lesson sink in.
You can do this!
The pain is real !
I’m thankful our HELOC application didn’t get through.
I did a 0% balance transfer and became debt free. I would've paid an additional 5K (approx) worth of interest if I didn't move the funds, and it would've taken longer to pay off due to the interests increasing the balance every month. It doesn't make sense to follow her advice by avoiding the 0% balance transfer, as long as you can pay it off before the promotional period expires.
How much did you pay for a balance transfer fee?
@@nathangunnels8624 It was 3% of the balance.
I needed to read this! Thank you ♥️
I didn’t go for Easy I went for Simple
I had a 10%apr CC that I got as a teen
So I consolidated everything into this one, not to get a lower payment, but to get a consistent payment
This allowed me to save a consistent amount to pay it in full in one go
I have done almost all of these things wrong. I am overwhelmed
Giving! Yes generosity is about the character not about the circumstances. The poorest people sometimes give the most. And bless others and make the biggest impact! Being generous is very important!!!
I really appreciated the part about giving. We're still paying off debt and still give 10% to our church, as well as setting aside a little each month for giving in other ways. Sometimes I just think we could get through it a lot sooner if we took that money and put it towards debt every month. But I know giving is the right thing to do and really does shape our character. Thanks for the encouragement and reminder.
Well done! I’m in a similar situation, & titheing to put God first. It’s easy to think that tithe money could pay off debt faster… but God makes a way, & I keep improving my money mindset
I did the debt avalanche (highest interest rate first). Totally worked for me. Not everyone is the same. You said debt snowball it is the "most efficeint way" to pay off debt, but even you admitted that isn;t true. It may be the most effective for many people (based on psychology, NOT math), but it is most certainly NOT the most efficient.
Great comment!
Either will work but Dave's way is that you see quick results by starting with the smallest debt which gives you the gazelle intensity to continue.
@@pattylott9626 like I said, if you need that boost… do what works for you. For me… once I decided to get debt free, I got the biggest buzz over wat hing the monthly interest charges drop and knowing more of my dollars were going to actually paying down debt.
I agree.
The reason its most efficient is because you eliminate payments, thus increasing the amount you have in your margin to put towards the next. This helps you pay it faster without increasing your income. The Avalanche tends to work best when you have a very big "shovel" or high numbers of dollars to put towards your highest interest debt and pay it quickly. It's an uphill battle against high interest if each payment is only 2 or 3 % of the balance
It would be useful to study whether those that consolidate their debt to a lower interest rate actually pay off their debt faster. I don’t think so as I think it might make them feel less pressure to be intentional.
The main issue with debt consolidation is that what those companies do for you is something you can do for yourself. Granted because of the relationship with the credit companies they may get better results sometimes. But you can negotiate better terms yourself. And you don't have to pay there fees. The other issue is you effectively pay interest on it longer.
Mathematically sometimes consolidation is better though. What the main reason why Ramsey wants you to pay it off yourself is because if you cannot... the rest of his steps will be harder. It's more about teaching discipline than getting you out of debt.
Thank you, after watching you and David I will start to pay off my car loan in 12mons intends of 5 yrs....
I have used the credit card balance transfer a couple times to lower the interest i was paying. I transferred a 10k CC last year and saved thousands in interest.
I did a transfer b/c my $13k was costing $350/month in interest. That’s $350 I could put towards debt.
So went from 33% to 0% interest
Sorry if this is a dumb question but how did you do a balance transfer?
@@lizrozon6308 Oh, it’s basically applying for a new Credit card. Wells Fargo had a 18-21 months of zero interest introduction rate.
When they approved me I called them and asked to do a balance transfer. They charge 3% but it’s worth it since you don’t pay interest for 18-21 months, and can tackle it easier.
It’s important that you close your old card once you pay it off. Or else you will want to use it again and go much deeper into debt. B/c now you have an extra card.
I also called the company that had me at 33% and told them I was having a hard time financially, and asked if they could decrease my rate for a few months. They got it down to 18% for 6 months, but the card is also locked and not usable. So that helps not to be tempted to use it.
@@chaselesser3191 thanks! I had no idea you could call and transfer like that.
I appreciate the response!
@@lizrozon6308 Just make sure you aren’t going from a 18% to a 9% card.
If it’s not Zero interest rate card with a long term, it may not be worth it.
I kind of disagree with the transfer to a new card if the debt isn't too large. I transfered my credir card balance to a zero interest for 12 months card, divided the amount by 12 and that was my new card payment. It stops the endless fees that make it so difficult to pay off! Of course I still have to be disciplined to make sure I make that payment every month and I didn't use the card until it was paid off. I felt like it helped at least stop the bleeding and helped my payments actually put a dent in my debt. But you can NOT miss a payment.
...I did want to add thank you for all you do to help people get out if debt. I didn't learn how to manage my money growing up and it was a painfully long lesson. I am glad that people like you are willing to share what you know to help the rest of us work through it.
I tend to agree too but.. if your paying it off aggressively.. you might not be saving as much interest as you think. I did this too for mine though. So I do in general agree. But..
Say you have 10k in credit cards. Payment is probably around 300. Interest is 225. If your able to throw 2.3k a month on this thing. Your paying it off in around 5 months. Your not paying as much interest as you think and going to a 0% card... while for sure helping and probably more money efficient. Isn't saving you that much. I ran through my hypothetical and it's approximately $650 in interest @ 27% would all you'd be saving. Again. It's not nothing. But it doesn't change how long to payoff. So it really just comes down to how important that 650 is. When I did mine. It was extremely important to me. So yeah. I used 0% cards.
I’m having a hard time supporting my family and I on ssdi. $41000 a year. My wife wants to get a job but I have a lot of medical issues, and she takes care of me and takes me to appointments. Our son is a sophomore in high school and is getting a part time job this summer
$8k is what I have. It’s been lingering for 10 years and still causing havoc in my life. I haven’t paid a dime or been in touch and the accounts have been closed/charged off in collections.
I don’t know who owns the accounts now but I’m finally in a position to get this debt out of my life. After the $8k is paid I can scream I’m debt free until I purchase a home, then I will have a mortgage and that’s it.
Do a credit report check. They should be listed. You could also contact the original creditor.
I used National Debt Relief back in the day and found it to be a HUGE help.
Did that actually work? I'm doing that right now
@@toxictrexx7716 yup! Got me out of around $6000 debt in less than 2 years. I searched around for companies like that and they had the best reviews. I found them extremely helpful.
@ColoradoKid303 that's good I really hope it works I have a bit more then that
I love you guys!! I also understand and mindset of giving… but it doesn’t make sense to stop investing but continue to give. To me those are in the same category
Thank you. God's Love and Blessings.
I did the consolidation about 10 years ago and it actually wasn’t bad. It was about 14k in money owed. When they do this you no longer pay interest on your monthly payments to the company you only a flat rate. Im sure other companies may be different but my payment plan was for 2.5 years
I’ve done the debt consolidation and the balance transfers, but it didn’t help. I’m doing the debt snow right now and it’s working. I paid off $1,750 of credit card debt this week.
Way to go
Stop Investing yet Keep Giving. That’s seems counterintuitive. I understand it may be Character issues, but that has nothing to do with debt or building wealth. Plenty of bad people that are wealthy and debt free. I’d rather give once I fixed myself first.
Agree. A lot of this is blanket unthinking "follow my script only" stuff.
Agreed
Debt settlement companies are a rip off. When I was in my early 20s I tried using a company and after 8 months of absolutely no progress, I cancelled the service and just knocked out my credit card debt as she said . . . starting from the least to the greatest.
I owe you an apology. In a prior video I referred to you as condescending…my apologies. You’re right. I’m an idiot, but I will follow the baby step plan. Thank you for the help.
For me paying off the one with the largest balance is how it’s going to have to be. The interest rate is horrid, and paying hundreds in interest each month is sickening. The lowest balance one is getting the minimum payment and I’m throwing it all at the highest balance one to hopefully get lower interest with a lower balance.
They preach 100% about the debt snowball (understandably), but for people with discipline and a logical mindset, the debt avalanche (highest interest rate first) will save you money and get you out of debt considerably faster.
Brilliant advice Rachel!!! Excellent!!!
thank you so much for addressing these . There have been 3 or 4 that I have actually considered before and I am glad I chose not to after hearing your views. Thanks Rachel!
Yes, no debt here for 5 years life is so good, but always give to your church always.
I love the zero balance budget system; it really works for me. Although am very good with management money, the glory to God. Love Ramsey shows.
This is a great video, but I have to say something about your sponsor Christian Health Ministries. It may be a great plan if you have no previous health conditions but if you have any, this is not the plan for you. This was sold to my parents as if it was health insurance. It is not. It says it right on the card. They aren't obligated to pay and if you have a history of anything it is not covered at all for the first two years of the plan. My dad had a history of "fatty liver" (super common, right?). He found out while he had the insurance that he had decompensated liver cirrhosis and needed a transplant. None of it is covered due to that fatty liver diagnosis. He had NO clue he had liver issues. He knew he was overweight, but he didn't know he was in liver failure. We had to wait for open enrollment to get real insurance while zero of his treatments were covered with this plan. It was the longest year of our lives. He couldn't even get his medicine paid for.
On top of that, there’s the religious issue. The name is pretty exclusionary to people of other faith groups.
Walked into every mistake in this list of 10 😅 Thanks so much for the wakeup call!
I made 2 of these mistakes...never again. Never again
....
I got out of debt by transferring balances. Took me 5 years but it worked..
Good advice - yes, If doing debt settlement do it yourself - I had to as husband got sick - I got 30% on 2 cards so far - larger balances - will be working on one larger and smaller ones within a year based on hardship. The original creditors have been easy to deal with so far.
I paid off my debt with a personal loan. It worked for me. It was a 5 year loan....paid off in 22 months. Less interest, not revolving credit and the fresh do over start is what I needed. Will it work for everyone...no.
I'm 41 and I've done it all, now very close to paying it off. 0% is how it started and 6 yrs later I still had tens of thousands in 0%, just have 2 car loans left.
Thanks Rachel, to be honest I never ever had any debt or took out any loans until recently, the main reason I took out the loan was due to the fact that I got scammed on the Internet paying some guy on PayPal. After that I went on a downward spiral of taking out loans, also I have a student loan that I'm currently paying off so I am in the process of watching your videos and trying to get back to where I was before, I mean I used to have money left over and wasn't living paycheck to paycheck. I'm still struggling financially and still want a better life so I can support my whole family.
I can't stand the student loan forgiveness! 😤😤😡😡
I did it years ago and the fact that there are people that take the money out and never pay it back drives me insane!
The only thing I don’t agree on is the balance transfer. I did this and had no interest for 24 months which made it a lot quicker and easier to pay our balances down, considering it was our top priority to be debt free and we stuck with the snowball it was a good move.
I did a balance transfer with 2 of my credit cards for 0% interest for 18 months. The interest was initially so bad. The cost to transfer was just 1 month of interest so it was a winning situation for me. I'll be done paying it off earlier than 18 months and it's nice to see my balance not increase after a payment.
Debt free, mortgage free, 35 years old, with a booming income property…. Completely self made, no parents, no banks and no partner helping me. Thanks for renforcing the good habits I had developed while being impoverished.
I used 401k loans at 4% interest, credit card transfers at 0%, and gambling on horse races to eliminate $120k in 2 years.
I also kicked both my kids out of the house. They were 22 year old leaches. One got a real job and the other is the army's problem now.
Worked great!
I understand the giving idealism behind growing wealth. I have always been blessed to have enough where I'm handling my finances and if ever anyone needed help financially, I was able to bless them with that help. Some how, some way I always get the money back times extra. Sometimes from the person I helped or by other means, but it's always came back to me. It's true. Now, it is important too not to think you can be taken advantage of so my rule of thumb is, I helped you once, you pay me back I can help you again. You don't pay me back, that's all the help you get. I give without expecting it back, but I also am mindful that I'm not being taken advantage of.
I need to quit buying unnecessary things. Handbags are my weakness. I try an justify I need this bag or that wallet bc it’s so pretty or this shade of pink is to die for. NO! I have enough!!! I need to stop. It’s like an addiction. I’m staying strong tho. I’m paying these cards off! I’m dodging these handbags left and right 😂 wish me luck and good luck to y’all!! 🍀
Watch “confessions of a shopaholic”. ! It may help too
I took on extra work. I ate at home, no lunch or coffee out. No new clothes. Staycations. It worked but the first 4 years were tough.
HELOC is one of the best ways of reducing the debt burden. Think you have not taken a HELOC and continue to pay what you would have paid at the first place. It helps in reducing the EMI while helping in repaying the loan faster.
Yes, it means I am risking my house, which actually be used as a source of motivation to get out of debt.
Combine all the loans except a home mortgage into a HELOC and then treat as of it never happened.
I did take help of a HELOC and was able to get debt free 39 months earlier compared to had I not taken the HELOC.
I'm glad you are teaching giving along the journey
Debt consolidation was good for me to get out of debt..it was the high interest rates on CC
I think getting into debt and buying things is fixing our feelings,(Or trying to!) I know when I am feeling down I find myself on eBay looking to buy something I don't even need lol, If we are not feeling happy and content we find ourselves buying "Stuff", It's hard, because waiting a month for next pay day without any treats is hard right?
Also don’t put to much onto your credit card at once when making payments when thinking I usually pay say 50 a check then you decide to do 150 to pay off faster then you run out of money down the week and have to use the credit card again .. be realistic with your payments and do 75 or 100 even and be real with yourself so you don’t go backward not forwards .
AKA writing a monthly budget
I was out of debt but then always helping my kids by giving now I'm in debt again
this is my downfall also
What you said is true about owing your 401k if employment stops while having a balance but there’s also no credit pull for borrowing your own money and the interest paid goes back into your portfolio. Fidelity investments charges a poultry $35 processing fee per loan. Why pay a bank interest when you can pay it back to yourself?
velocity banking is better than snowballing
The biggest take away I got from this is being accountable and doing what you have to do to get yourself out of debt. Regarding boneless transfers, I think it’s okay as long as you don’t rely on that and use it as a solution as you mentioned. I have one more credit card to pay off and the interest is ridiculous so I absolutely will be transferring it to a, zero interest card so I can pay it off quicker. This month alone I was hit with over $300 just on interest alone from that card.
Balance transfer worked for me!!!
Yeah same here, however It depends on how well you've adjusted to the debt focus. When I did it, it was because I looked into all the costs between the options at at the time the extra hundred bucks was nothing compared to the interest. AND I knew for a fact, without any doubt, that I could pay everything off within a few months. For people who do it to pay years on the balance thinking it buys time... not the best.
I donate $5 monthly and save $50.
Great video. I made the 401K loan mistake years before taking FPU. Took me 2 years to pay it off and then I was finally able to start looking for a new job. Ugh. Just remembering that makes me ill.
Thank you! I'm doing everything correctly so far. With God's providence and guidance, I can do this! Lord, I surrender to you.
1000 percent disagree about the credit card transfers, just had one for 20 month with 0 interest
Definitely start by paying off highest interest loan first
best advice everrr! especially HELOC...no bueno!!!
No bueno, lol.
It blew my mind
Thank you for this motivation
What aboutt saving the money for the student loans before it resumes? So you’re waiting but you are not relying on them
Thank you this is very helpful information. Subscribed ❤
you NEVER turn down free money unless you are not meeting your current obligations with your current income. Always go for the company match before funding that emergency fund and becoming debt free.
The avalanche method works for me
Here is one thing I've discovered that is so important, that is not mentioned in this video: The biggest mistake 95% of people make is not paying yourself first! Shout out to Rachel for making this video and handing out helpful tips. All of what she said is 100%. One thing that many people fail at and it's why many people get into debt in the first place! Paying yourself first does not mean you spend a portion of money on yourself! It's the complete opposite of spending! Did you know, you can save the amount of money you owe, to yourself, faster than you pay off large amounts of debt? Paying yourself first, it's all about building options for you! If you take on a part-time job to pay off debt, you might as well use that part-time money and keep it for yourself first. When you accumulate the same amount of money you have to the same amount of money you owe, now you have your freedom ticket! Snowball effects is the only strategy used if you do not have any other source of income or cash flow. When you put all of your hard-earned money into bills first, you'll be stuck in a cycle!
Depends on who your giving to
omg!! I didn't even know these things excited! I only have my car loan that I plan to pay off this year woohoo! I am going back to school and I am kind of scared of those payments
I took out a 401-K LOAN, not a withdrawal. The interest is low and a flat rate, not revolving like credit cards. IF I leave my employer or get fired, it would be treated like a withdrawal and I will be taxed for that amount. Using this loan (that I pay back to MYSELF) to pay off 3 high interest credit cards will save me over 10K in interest over the 3-year term. There is no way the amount of the loan was going to make that much money in my 401-K over the next 3 years. And I'm still contributing....I don't want to leave the company's match money laying on the table.
Yep. This works when you have a plan and are sticking to it. The problem is just that some people will take the loan and still be in debt
I have to disagree with you on the snowball versus avalanche method. Yes, the snowball method makes you feel more motivated because you see things getting paid off quicker, but in the long run, you spend more money and interest will use a snowball method versus the avalanche method and you actually pay off your debt faster when you use the avalanche method.
It doesn't matter what you think about it. It's already been proven the snowball method works way better in terms of paying off debt.
Moat people just want to get out of debt, they aren't trying to mathematically maximize. The snowball method has been shown to get more ppl out of debt period.
@@Benedict00_ItchyManko I agree with you but when it comes to saving money and stuff paying off high interest first is yes less motivating but in the long run, you save money snowball is more motivational also yes I agree with you on that but if you’re looking at trying to save money in the long run avalanche is better than snowball
@@SOUTHWEST_PILOT Yeah i agree also, but ppl arent looking to save money, people struggling with debt are looking to get out of debt first and foremost. Getting out of debt has been proven to work way better using the snowball method.
Buying things the same as cash.I got my bedroom set. Queen size bed the frame headboard with storage at the end drawers. Two night stands. Full blown dresser 6 drawers. The high boy 5 drawers.
Financed it with littlest down. The price is $3,600.00. I made 12 payments one year only.
Then I went in payed the balance off 100%. The cosof y doing this was $ 2600.00. I got it 2018. Now 5 years later. I'm enjoying this with no future debt.
The lamps 2 with the shades I got at a thrift store. It took one year looki, g taking my time paided cash for them $35.00 each. Looking on line these same lamps were $300.00 each. The mattress was cash.
I am blessed to have completed my bedroom not creating debts. Charging on credit cards. I leveraged out using there offer same as cash.
I planned out everything and have the things I'm life I need as the saying goes living way below your means lovering changing your life style being frugal really works.
Love this pod cast not trying to make mistakes by making mistakes it can enslave you to the lenders.
Take a deep breath, plan things out don't just jump in, and you will do so much better over the long term.
Joel Alm
I used a balance transfer and paid off all my debt in 9 months!