Being in debt to a tune of around $12,000 (currently) with an annual earnings of about $19,500 (2007), I was excited when a promoter contacted me and asked me to review, "How to Get Out of Debt," by Harrine Freeman.
Reading her book, her story sounded a lot like my own, and for good reason. Freeman herself was once $19,000 in debt while earning $21,000 a year. However, she learned how to climb out of debt without filing for bankruptcy and shares her personal story and strategies that she's used for thousands of clients in her book, How to Get Out of Debt; Get an A Credit Rating for Free.
There are somewhere in the neighborhood of 30 million Americans who are in debt and receive bad credit ratings every year, according to the Fair Isaac Corporation (FICO). They have no idea how to get out of debt, and more than 1 million of these debt-ridden men and women file for bankruptcy each year. Now with this book, you can learn how to clean up your FICO score for free, without using one of those rip off "credit repair" places.
As a personal finance blogger, I have read a lot of books on this subject. Harrine Freeman recommends a method very similar to Dave Ramsey, in which one uses small and attainable goals. Pick the smallest debt you have, let's say it is $100, and pay it! That debt is gone, and you can move to next. Simply put you can 'Nickel and dime' your way out of debt.
It is a good concept, one that I myself am already using to get out of debt. The author recommends this method from her own personal experience. Much the same as personal finance guru Ramsey does. Freeman's debt, was from misuse of credit cards, used for fun rather then necessities. Which also means that this wasn't student loan or medical debt that plaques so many Americans. There are differences, however, between Ramsey and Freeman. For one, she seems to worship at the altar of the FICO score. Much of her book talks about rebuilding your credit. I do applaud her as she recommends staying away from the so called credit repair places. All they will do is take your money and give you empty promises.
She explained paying the minimum payment on the credit card means that you are going to pay for that item three times. In other words, that $5 coke and sandwich that you charge at lunch, will cost you $15. Is that scary or what? I know, some of you have thought I was crazy when, I have said the same thing previously in this blog. Perhaps, you should read this book and see what she has to say, for yourself. I really enjoyed it, and it really is a well written book without all those mind numbing calculations that so many finance books throw at you.
The book hit the shelves in November 2006, so you shouldn't have to much trouble finding it. You can easily find it by visiting Amazon.com.
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Hi Kevin.
ReplyDeleteLiked your post - and find myself in a similar situation to yourself - though my total debts are more than a years wages.
I'm adding to my income by playing the "How To Get Rich Online" game, and it's actually starting to work quite well for me, so I recon I'll be debt free possibly even by the end of this year.
I agree with you that most people would do themselves a favour by raising their financial intelligence, and realise just how much the small items bought on credit actually ends up costing you.
The way to get yourself out of debt is to outsmart your financial advisor, which is not really too hard these days, as most of them are only salespeople for the banks and/or rip-off credit repair companies.
I may have a go at reading the book you recommend, as I quite like Dave Ramseys stuff. Thanks for the tip!
This sounds like a very interesting read Kevin. I'm going to check my library to see if I can check it out.
ReplyDeleteThanks.
you're welcome JW....It is a very interesting read.
ReplyDeleteHi! Wanted to say I check your blog almost daily. I am not in debt, but might check out this book anyway. Have a great week! -Becky
ReplyDelete