Getting Debt Free

Yesterday, I received an email from Dixie asking,

Would like some more information on getting out of debt. Would appreciate an email response. Thanks.

This is a topic that I have posted about several times. And have discussed in general through out my blog. There really is no secret formula. As Dave Ramsey (one of the Financial gurus, that I listen to) is so fond of saying,

advice your grandmother use to tell you, only we keep our teeth in.

Real basically the advice is as follows:

Pay yourself first...(Try to put away at least 10% of your pre-tax income into a savings account)

Spend less than you earn...(While this seems obvious, Americans are notorious for doing just the opposite...ie: stop spending and start saving)

Cut up the credit cards and take out no more credit ever. (Pay cash for everything, if you can't afford it, don't buy it)

Pay your bills on time...(Avoid needless late fees)

Set a budget and live by it.

Pay your smallest debt first (snowball method) accelerate your payments as much as you can on your smallest debt, paying the minimum's on all the rest of your debt. As soon as the smallest is paid, apply that payment to the next smallest and so on until you are debt-free.

Buy a used car...(car looses half it's value with in the first 2-years, let someone else waste their money)...don't forget to save up and pay cash for your car.


Here in Topeka Dave Ramsey can be heard (pre-recorded) on KMAJ-1440-AM from 7 pm-10 pm.