So far we have raised 15% of our monthly running costs! Thanks for your generosity!

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Paying off debt
#1
[MENTION=23180]axle2152[/MENTION] mentioned in another thread about wanting financial advice. My ex-wife and I went through Dave Ramsey's Financial Peace course and it helped us get debt free in a few years.

http://www.daveramsey.com/get-started/debt

His plan is counter to many plans which try to reduce the total amount paid over time by figuring out how much in interest you would save. His plan works on the precept that you are more likely to do something when you see results. Hence, paying off the smallest debt first, taking the money used for that, and applying it to the next, etc, etc.

We will be going back on this plan, now that my fiance has a job, and we can actually spend money on debt relief.
Those who have HATE in their heart are HATEFUL PEOPLE
#2
I have heard about Dave Ramsey and will have to give him another look. I remember him saying the first thing is to get $1k in the bank above all else...I suppose that is possible but that means basically not paying but only the minimum payment for several months. Then I'd say the key would be to NOT use the money, period, otherwise you're right back where you started. However, that's just a little snippet of what I remember him saying.
#3
Well, if you have that $1000 in the bank, you are prepared for many "emergencies" which you may otherwise tap a credit card for, like needing tires, or a car repair. Things which we know happen, but we don't account for in our budget before they are needed. It's all about taking control of your spending. In fact, he doesn't recommend calling it a budget, but a spending plan.

His steps are about building wealth, it starts with the emergency fund, and paying off debt. Lot's of free advice on his website.

http://www.daveramsey.com/baby-steps/?snid=start.steps

Quote:1 - $1,000 to Start an Emergency Fund
2 - Pay Off All Debt but the House
3 - 3 to 6 Months of Expenses in Savings
4 - Invest 15% of Household Income Into Retirement
5 - College Funding for Children
6 - Pay Off Home Early
7 - Build Wealth and Give
Those who have HATE in their heart are HATEFUL PEOPLE
#4
Two words: rich parents.


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