I've been paying off more then the minimum to get out of debt. It's stressful but watching those dollars go down makes it well worth it. Every week I pay towards my debt.
+OCeagle15 thanks it sounds like you are doing great yourself too. unfortunately with an unexpected pregnancy i have to buy a house before I'm debt free. but God has a plan for all of us.
I like how you compare getting debt free with loosing weight, because both have to do with "shedding" pounds! Physical pounds and the pounds of worry when you have debt!
+Athrough Z tried it. Didn't work. He's stubborn. He doesn't think we should pay off anything. He's just like our credit is messed up and leave it at that type attitude.
+Dixon Christian Academy Pray for him. It took me praying to God for my husband to get on board with making more than minimum payments on our debt. I explained I wanted to be comfortable in our golden years. He is finally on board. He is still a little skeptical, but God spoke to him somehow.
I think the best counter argument I'd make is that if you're paying $50 a month on a zero interest debt, you could be EARNING interest on that $50 every month in an INVESTMENT.
sarah Kidwell. I agree. I like the show, but one thing I don't understand is why Dave always says to pay the smallest debt first. Is that because it has "feel good value" to pay one off? Makes more financial sense to pay the most expensive debt first. In which case, if this couple has other debts with interest, then paying the minimum on this one is the right thing to do, and they are already following the advice. I also didn't think he was listening. I would grab the $20m interest free to invest as well.
@@michaelpeterson2024 Yup, that's the reason. It helps psychologically to see the debts reduce faster, and to be able to up your payments on another debt. (Debt snowball) But if you can trust yourself to keep paying off everything as fast as you can, then attacking the higher interest ones first does make more financial sense (debt avalanche).
The reason to have less payments is to increase your cashflow. And when you have more cashflow, you are less stressed and more willing to make investments.
The most important thing is pay off debt and much less stress in life. Not about getting rich, if you do great. But, out of debt is a great accomplishment. The banker's create this with high interest and fee's.
Whoever the American Express guy is that called his wife and told her that please call his show and apologize Dave is still holding a grudge and brings it up every chance he gets lol
Well I might talk to the person who has 3 kids in jail, because they would have some good advice on what not to do. I don't think they would give very smug parenting advice.
idk dave. she needs to be loving and ask him to do this for her, if he really loves her. ask him to trust her. possibly add a good friend to meditate, and vision what their life would be like without debt.
Yeah... zero interest debt... pay the minimum and snowball the others, then finally Tackle the zero interest last with a ferocity and force of a very powerful snowball. If you can't handle this mentally for some reason, or the the zero interest debt is made of smaller zero interest debts, pretend you "consolidated" those into one large zero interest debt, and tackle in its proper order in the snowball.
The exception to that could be to be dumping the extra $$$$ into an investment option making 8% vs paying off a 3.3% mortgage with a $30,000 balance. You could be gaining more with the extra principle going towards an investment than paying for a low interest loan. Since no matter what, a person is going to be paying to have a roof over their head, (unless you live off the government or are mamma's basement boy/girl) I have been trying to determine if I am better off dumping $$$$ into 401k or dumping it into the mortgage, which isn't paying a whole lot of interest now. It will definitely make me feel better having the mortgage gone, but such personal satisfaction really doesn't gain a person much.
This is where I disagree with Ramseys my way or the highway philosophy. I broke one of his cardinal rules. I cashed out my 401k to pay off debt. Logically this was a terrible decision but one I had to do to break the cycle. I didn't eliminate all the debt. I had been in some type of debt for the last 15 years. Once I had the debt at a manageable size I was able to tackle it and finally eliminated it and have stayed debt free for over a year. Emergency fund completed. Time to rebuild the 401k. Not everyone is the same. In this case keep the 0% loan (0% forever??) and put more into the emergency fund/retirement/mortgage.
We had to when husband was hurt and couldn't work for 2 and half years. So we didn't get foreclosed and get a smaller home. We didn't have to file bankruptcy either and would have if didn't. But seriously so worried about our retirement starting over at 51 building a retirement still have cc debt.
By slowing paying down your debt you learn the lesson and also it becomes habit. Cashing out your 401K you end up paying a penalty and more taxes. Why didn't you share that with everyone, share how much cost you. I am sure you are back in debt and will do the same again.
Odseus Jeez I don’t know. Borrowing money at 30% interest does not sound like a winning strategy. You can’t borrow your way out of debt. The average person following the baby steps is debt free within two years.
Odseus horrible idea. You unplugged good mutual funds and paid a huge penalty to access your own money. Never, ever borrow on your 401k unless it’s to avoid a bankruptcy or foreclosure.
It would make more sense to put extra money on a mortgage that you're paying 5% on instead of paying down a 0% debt. It would not make sense to take the extra money and buy a boat however. Also, I love how Dave says, "Miwwions!"
Riffman42 I would just follow his advice to a T. There’s a reason he’s gotten 10 million people out of debt. More than anyone else. The plan works every time when you do the steps in order. That’s why they’re numbered. Erase all debt, build your emergency fund, THEN pay extra on the house.
I would love for Dave Ramsey to help me I am a single parent of one I work as a cashier in a casino my income monthly is 1400 I am own 2900 in student loan and 3000 in personal debt ,and my monthly expenses are 1100 i am going to receive my tax income check and not to sure where to start paying off first please help Shelly
Shelly Hosten step one is write out a monthly budget. every month is different. step two is write out every debt, regardless of interest. smallest to largest. attack the little one. step three is save $1,000 dollars as fast as you can. that's a start. also, invest in buying the Total Money Makeover. email me and I can help you figure it out. shauptmann06@hotmail.com
Shelly Hosten u need to call his station and ask him directly! Posting your financial dilemma on you tube may not produce results. In the meantime, purchase the book: "THE TOTAL MONEY MAKEOVER"
Actually he would suggest that you set aside $1000 for your emergency fund before paying off any debt. Then start from the smallest debt and go from there. Rent his books and audiobooks from the library. Hey every dollar counts, right? He'll also suggest other ways for you to increase your income like extra jobs. Also, listen to one of his calls about the single dad making $13.50 an hour. The one after that is a video he made called, YOU ARE NOT STUCK!. Both very good listens. Good luck! I'm sure you'll do great.
Ray C it’s a behavior thing, not a math thing. Math wise sure that makes sense but personal finance is 80% behavior and 20% head knowledge. The idea is to pay off the smallest debt first regardless of interest rate in order to feel the effect of paying off a debt. It’s a very contagious feeling.
I've been paying off more then the minimum to get out of debt. It's stressful but watching those dollars go down makes it well worth it. Every week I pay towards my debt.
+Samantha Stevens Keep it up!
+OCeagle15 thanks it sounds like you are doing great yourself too. unfortunately with an unexpected pregnancy i have to buy a house before I'm debt free. but God has a plan for all of us.
I like how you compare getting debt free with loosing weight, because both have to do with "shedding" pounds! Physical pounds and the pounds of worry when you have debt!
35k for two people? Good god. People are broke AF.
I'm glad she asked this question. I still want to know what to do when you tell your husband all of this and he still doesn't agree.
put it on paper and show him how much would be left over. my wife wasn't on board, then I showed her how much we'd have left. that did the trick.
+Athrough Z tried it. Didn't work. He's stubborn. He doesn't think we should pay off anything. He's just like our credit is messed up and leave it at that type attitude.
+Dixon Christian Academy It can be done but people have to start some where.Even if it was just a little extra,it is still something.
+Dixon Christian Academy Pray for him. It took me praying to God for my husband to get on board with making more than minimum payments on our debt. I explained I wanted to be comfortable in our golden years. He is finally on board. He is still a little skeptical, but God spoke to him somehow.
I think the best counter argument I'd make is that if you're paying $50 a month on a zero interest debt, you could be EARNING interest on that $50 every month in an INVESTMENT.
Dave's said, yes and that is correct. But if you were good in math you wouldn't be indebted in the first place. Do what works, pay off your debts!
sarah Kidwell. I agree. I like the show, but one thing I don't understand is why Dave always says to pay the smallest debt first. Is that because it has "feel good value" to pay one off? Makes more financial sense to pay the most expensive debt first. In which case, if this couple has other debts with interest, then paying the minimum on this one is the right thing to do, and they are already following the advice. I also didn't think he was listening. I would grab the $20m interest free to invest as well.
Sarah Kidwell They aren't even trying to be debt free. Don't invest debt. That's not a blessing.
Michael Peterson Pay the smallest first. It starts a fire.
@@michaelpeterson2024 Yup, that's the reason. It helps psychologically to see the debts reduce faster, and to be able to up your payments on another debt. (Debt snowball) But if you can trust yourself to keep paying off everything as fast as you can, then attacking the higher interest ones first does make more financial sense (debt avalanche).
The Debt Snowball really WORKS!!
LadyofValor Indeed. I’ll be debt free next month. $40k paid off in 14 months.
Bobby Shupinski You are doing great!!! Dave actually says 2 years is the average people pay off debt following his plan!
waw... i love you Dave. God bless you. Your biblical principles on money has changed my life.
michelle branche Same!
The reason to have less payments is to increase your cashflow. And when you have more cashflow, you are less stressed and more willing to make investments.
The most important thing is pay off debt and much less stress in life. Not about getting rich, if you do great. But, out of debt is a great accomplishment. The banker's create this with high interest and fee's.
Whoever the American Express guy is that called his wife and told her that please call his show and apologize Dave is still holding a grudge and brings it up every chance he gets lol
20 mil with no interest sounds like a great investment opportunity!
There are millionaires who say pay off interest debt before debt with no interest.
These people need goals beyond merely surviving
Well I might talk to the person who has 3 kids in jail, because they would have some good advice on what not to do. I don't think they would give very smug parenting advice.
Brilliant advice as usual
idk dave. she needs to be loving and ask him to do this for her, if he really loves her. ask him to trust her. possibly add a good friend to meditate, and vision what their life would be like without debt.
If there is a place to lend me 20m dollar with no interest.......I am in! 😍
Yeah... zero interest debt... pay the minimum and snowball the others, then finally Tackle the zero interest last with a ferocity and force of a very powerful snowball.
If you can't handle this mentally for some reason, or the the zero interest debt is made of smaller zero interest debts, pretend you "consolidated" those into one large zero interest debt, and tackle in its proper order in the snowball.
Agreed!
this is my husband too.... the interest is low, there is no need to pay it off..... I'm so mad
The exception to that could be to be dumping the extra $$$$ into an investment option making 8% vs paying off a 3.3% mortgage with a $30,000 balance.
You could be gaining more with the extra principle going towards an investment than paying for a low interest loan.
Since no matter what, a person is going to be paying to have a roof over their head, (unless you live off the government or are mamma's basement boy/girl) I have been trying to determine if I am better off dumping $$$$ into 401k or dumping it into the mortgage, which isn't paying a whole lot of interest now. It will definitely make me feel better having the mortgage gone, but such personal satisfaction really doesn't gain a person much.
Pay off your mortgage. Your investments aren't guaranteed. Paying off debt is.
This is where I disagree with Ramseys my way or the highway philosophy. I broke one of his cardinal rules. I cashed out my 401k to pay off debt. Logically this was a terrible decision but one I had to do to break the cycle. I didn't eliminate all the debt. I had been in some type of debt for the last 15 years. Once I had the debt at a manageable size I was able to tackle it and finally eliminated it and have stayed debt free for over a year. Emergency fund completed. Time to rebuild the 401k. Not everyone is the same. In this case keep the 0% loan (0% forever??) and put more into the emergency fund/retirement/mortgage.
Odseus so you HAD to break your cycle by cashing out your retirement savings, losing out on your gains all to teach yourself a lesson?
We had to when husband was hurt and couldn't work for 2 and half years. So we didn't get foreclosed and get a smaller home. We didn't have to file bankruptcy either and would have if didn't. But seriously so worried about our retirement starting over at 51 building a retirement still have cc debt.
By slowing paying down your debt you learn the lesson and also it becomes habit. Cashing out your 401K you end up paying a penalty and more taxes. Why didn't you share that with everyone, share how much cost you. I am sure you are back in debt and will do the same again.
Odseus Jeez I don’t know. Borrowing money at 30% interest does not sound like a winning strategy. You can’t borrow your way out of debt. The average person following the baby steps is debt free within two years.
Odseus horrible idea. You unplugged good mutual funds and paid a huge penalty to access your own money. Never, ever borrow on your 401k unless it’s to avoid a bankruptcy or foreclosure.
Every Dave Ramsey upload is an instant thumbs up for me even before the video starts.
I would borrow 20 million if it was at 0 interest....
Dave doesn't understand the time value of money.
It would make more sense to put extra money on a mortgage that you're paying 5% on instead of paying down a 0% debt. It would not make sense to take the extra money and buy a boat however. Also, I love how Dave says, "Miwwions!"
Riffman42 I would just follow his advice to a T. There’s a reason he’s gotten 10 million people out of debt. More than anyone else. The plan works every time when you do the steps in order. That’s why they’re numbered. Erase all debt, build your emergency fund, THEN pay extra on the house.
I would love for Dave Ramsey to help me I am a single parent of one I work as a cashier in a casino my income monthly is 1400 I am own 2900 in student loan and 3000 in personal debt ,and my monthly expenses are 1100 i am going to receive my tax income check and not to sure where to start paying off first please help Shelly
Shelly Hosten
step one is write out a monthly budget. every month is different.
step two is write out every debt, regardless of interest. smallest to largest. attack the little one.
step three is save $1,000 dollars as fast as you can.
that's a start. also, invest in buying the Total Money Makeover.
email me and I can help you figure it out.
shauptmann06@hotmail.com
Shelly Hosten
u need to call his station and ask him directly! Posting your financial dilemma on you tube may not produce results. In the meantime, purchase the book: "THE TOTAL MONEY MAKEOVER"
Take that tax return and put it down on the personal debt
Actually he would suggest that you set aside $1000 for your emergency fund before paying off any debt. Then start from the smallest debt and go from there. Rent his books and audiobooks from the library. Hey every dollar counts, right? He'll also suggest other ways for you to increase your income like extra jobs. Also, listen to one of his calls about the single dad making $13.50 an hour. The one after that is a video he made called, YOU ARE NOT STUCK!. Both very good listens. Good luck! I'm sure you'll do great.
Why would anyone pay off interest-free debt first? It's literally free money. Use the money to invest.
Ray C it’s a behavior thing, not a math thing. Math wise sure that makes sense but personal finance is 80% behavior and 20% head knowledge. The idea is to pay off the smallest debt first regardless of interest rate in order to feel the effect of paying off a debt. It’s a very contagious feeling.