Tackling debt....Dave Ramsey...Suze Orman....others?
 

Hi,

I am about to begin to tackle debt...a much needed yet long over task for me. Do you guys have any opinions on Dave Ramsey or Suze Orman. I've recently listened to their shows and was thinking of buying some products to arm me with more motivation and direction. Is one better or is there someone else I should consider? Also does anyone know of any good debt tackling links, forums or blogs. Thanks.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Do not buy any products because that is most likely the sort of thing the exactly got you into debt... spending money on stuff you really dont need. Getting out of debt is as simple as spending less than you make, being frugal, and paying aggressively toward your highest interest rates first. You will find some great motivation and advice here:


Link

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Check out Motley Fool discussion boards on Credit Cards and Consumer debts. Great strategies for getting out of debt.

Motley Fool - Credit Cards and Consumer Debt

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Cubs is right, you'll never be out of debt if you can't spend less than you make.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

thanks all for the links. I will read though them.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I don't know how Suze Orman is considered an expert. All she does is state the completely obvious. If you buy her list on how to get out of debt it will basically say this:

1. Stop buying $8 coffees at Starbucks every day. If you order 3 of these per day, you will save $24 per day. That is $8,670 a year i just saved you! (even if you don't drink coffee I am still going to count this as money that I just saved your because I know everything, and women are better than men too).

2. Increase your deductibles. You probably don't even have a deductible on your car insurance because your such an idiot. Well make it $1,000. This will save you like $500 a year.

3. Stop using premium gas. Regular unleaded works just as well, and btw, did you know that it is cheaper? Bam! I just saved you another $250 per year.

Well, maybe her stuff helps some people... but the way she writes/talks annoys the hell out of me, and I already do almost everything she preaches so nothing she says even applies to me.

On a more serious note though, you should be able to find all of the information you need online for free. If you need a book, I don't know of any good ones but I'd imagine there are some good financial books out there that cost less than $20. You should be able to find some good articles at sites like fool.com, finance.yahoo.com, money.cnn.com, smartmoney.com or similar sites that can get you started in the right direction.

One thing you should do, is keep track of every single cent you spend. Write it down, and review all of your expenses over a month. Figure out what expenses you can live without, which ones you need, and which ones you can save money on (such as making your own instead of eating out/buying fast food). Like other posters in this thread have said, the key is to stop spending everything you make (or more), and start spending less than you make to start building a savings or paying off existing debt.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Great job for tackling your debt!

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Why don't you just list your debts (and corresponding interest %) and household income herein? I know it's personal, but we're here to help.

Mostly though, it's going to take an attitude adjustment. Changing your bad habits. Learning to think in an entirely different manner.

I would highly recommend Ramsey. You can listen to his archives online every day. Orman is much edgier, and seems to rub people the wrong way sometimes. The only think D-Ram does that may offend some people is talk about faith and the bible occassionally. (Doesn't offend me at all).

I've listened to D-Ram for about a year now and I understand the fundamentals of money much moreso than a year ago. When listening to his show, I can pretty much tell what he will say before he says it.

For the record, I've paid off 5 digits of debt and currently have over twice that in savings, all in about 2 years. Complete 180, and I sleep easy at night now. [img]/images/graemlins/smirk.gif[/img]

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I'm being coy here. It's the truth, however.

Sing This Song to Avoid Debt Problems

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

i agree, create a new account here if you want to keep it private and post your whole exact financial situation. i'm sure you'll get some good help.

of course don't actually post it in this thread because then we'll know it's you anyway...

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Useful link

web page

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

[ QUOTE ]
I don't know how Suze Orman is considered an expert. All she does is state the completely obvious. If you buy her list on how to get out of debt it will basically say this:

1. Stop buying $8 coffees at Starbucks every day. If you order 3 of these per day, you will save $24 per day. That is $8,670 a year i just saved you! (even if you don't drink coffee I am still going to count this as money that I just saved your because I know everything, and women are better than men too).

2. Increase your deductibles. You probably don't even have a deductible on your car insurance because your such an idiot. Well make it $1,000. This will save you like $500 a year.

3. Stop using premium gas. Regular unleaded works just as well, and btw, did you know that it is cheaper? Bam! I just saved you another $250 per year.


[/ QUOTE ]

4. Pay off your high rate loans first. If you have a credit card at 18% and a car loan at 10%, pay off the credit card first before paying down the car loan.

I don't get it, either. I don't think I've ever heard one of these "pop" financial advisors ever say anything that wasn't jaw-droppingly obvious, as if it they were letting you in on secrets of the rich and famous.

eastbay

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

[ QUOTE ]
3. Stop using premium gas. Regular unleaded works just as well, and btw, did you know that it is cheaper? Bam! I just saved you another $250 per year.

[/ QUOTE ]

Please don't use any fuel that isn't recommended. If your car can run on regular, run on regular. If it needs premium, please use premium. Don't use regular on a car that needs premium just because it's cheaper. It can damage your engine.

Premium vs. Regular

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

FPS,

Thats pretty much almost only for old cars. New cars don't knock.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Thanks all for the advice/links. I agree with you on Suze. I watched her show for a second time and she somewhat annoying. It's something about her delivery...she over exaggerates and puts on a bit much to say the obvious. I do find lots of points and topics interesting...but it's something about her delivery.

I also think I will take your advice and start tracking where my money is spent to make the comparisions to see what I can cut out/back on.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Prohornblower,

Congrats on your 5 digit reduction in debt!!!!!! I have been listining to the recent online Dave Ramsey streams and I like him too.

Just curious, what your your biggest challenges in making your 180 turnaround?

Congrats again.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I am currently using the snowball method to get rid of debt.

http://en.wikipedia.org/wiki/Debt-snowball_method

It was tough at first to live below the way you used to live. But once the first credit card was paid off, I all of a sudden had a lot of extra money at the end of each month. And I've paid off two other cards in no time.

If you don't want to click the link: here's snowball in a nutshell.

Let's hypothetically say you have 5 credit cards each with a minimum payment of $100. You have $600 to spend on debt reduction. So you send $100/month to each of the cards except for one. You send $200/month to that one. After the first one is paid off, still spending the $1000/month on debt reduction, you can send $100/month to 3 credit cards and $300/month to the other card.

By the time you're on your last card, you're sending a lot of money to that card and getting rid of the debt.

The hardest part is reducing your spending. Previously, I'd send the minimum to all my cards, then I'd look in my bank account and see I have a bunch of money left over, so I'd buy stuff I didn't need.

Now, I just set up automatic payment. The same day I get the direct deposit from my employer, I send a set amount to the credit card companies. Now, I don't have extra money in the bank account, yet I'm still paying off debt.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

There multiple methods. I prefer the ones where you see progress quicker IE paying off smaller bills etc. Anyone who is able to recognize the value in paying off higher % debt probably isn't in debt :/

Snowball and others work very well for the debt plagued IMO.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I recently became 100% debt free.. its a GREAT feeling!

buy cheap, buy used, buy smart, buy less. good luck!

BB

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I would always just pay the minimum to all of them, and then put all my leftover money to the one with the highest interest rate. Wouldn't matter how large or small the balances are.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

Congrats on your progress and thanks for the info too. I remember awhile back Oprah had a Debt Diet series and they used the snowball method.

Also, I'm proud to say that because of Cubswin comment earlier..."Do not buy any products because that is most likely the sort of thing the exactly got you into debt... spending money on stuff you really dont need." I managed to stear away from Ramsey's sales team selling me the $80 "debt buster pak" and managed to track down a free copy of Ramseys book at the library - thanks. [img]/images/graemlins/wink.gif[/img]

Thanks for all of the input/links.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

[ QUOTE ]
I would always just pay the minimum to all of them, and then put all my leftover money to the one with the highest interest rate. Wouldn't matter how large or small the balances are.

[/ QUOTE ]

There is a reason you are not in debt.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

[ QUOTE ]
Prohornblower,

Congrats on your 5 digit reduction in debt!!!!!! I have been listining to the recent online Dave Ramsey streams and I like him too.

Just curious, what your your biggest challenges in making your 180 turnaround?

Congrats again.

[/ QUOTE ]

Well, I got a LOT of help from my gf. Literally, one day I let her know how bad it was, and that I'd need to get a 2nd job. She said she didn't want me to have to get another job b/c we wouldn't be spending enough time together. So, she helped pay off my debt. Together, we nailed it. She probably gave me in excess of 5K. I'm not ashamed to admit that it took her help. I'm actually very proud to point out to people that my girl was willing to help. Now, I help her with her Roth and stuff.

Honestly, Prelude, my debt wasn't attributed to bad spending habits. I was a recent grad. back in March 2003 when I got laid off (beginning of Iraq war). My industry was hit hard and I was out of work for over a year. I was literally paying rent and car payments on my CC. It was a bad time obviously, but my gf and I got to spend a lot of quality time together that year. (Part of the reason she helped pay off my debt, b/c she encouraged me to not take a low-paying job just because). And, I learned a lot of valuable lessons. I learned more about life from getting laid off than I did in 5 years of college.

So, anyway, that is how I got into, and out of debt. Probably doesn't help you much, but do what you gotta do. If your sacrifices hurt, that probably means they are working. As D-Ram says, with money, "The good decisions ALWAYS hurt now, and feel good later."

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

[ QUOTE ]
I would always just pay the minimum to all of them, and then put all my leftover money to the one with the highest interest rate. Wouldn't matter how large or small the balances are.

[/ QUOTE ]

Great idea. But, if the interest rates are similar, psychologically speaking, it might be better to get rid of the smallest balance first.

Let's say you have three credit cards. Two at 17%, one at 19%. The balances are 2000, 2000, and 10,000 (the 19% one). If you pay off the 10,000 debt first, you'll eventually get to debts of, e.g., 1800, 1800, and 6000. But if you pay off the low debts first, you have debts of 0, 0, and 9700.

Overall, you're in similar circumstances. But to some, the psychological impact of paying off 2 cards outweighs the $100 in interest you save. All depends on your personality, I guess.

Re: Tackling debt....Dave Ramsey...Suze Orman....others?
 

I agree with that generalism. There is the mathematical factor of paying debt off, as well as the psychological factor.

Obviously, if one debt was $100 @ 6.00% and another debt was $1300 @ 8.25%, I would write a hundred dollar check, and be done with the one debt, then tackle the higher rate. It feels like I accomplished something, plus that is one less check to write each month.

Everyone's personal balance will be different, obviously. But I think there are instances where every one of us would pay off a lower rate first.