Dave Ramsey, "Debt Snowball" Money Makeover - 3/10

[ward185]

I started the debt snowball about a year and a half ago,and it wasnt that hard to do,how ever,we fizzeled out in a couple of months.I would be out of debt by now and have more money in the bank than we have ever had. I could be pursuing my dream instead of having to go to a job I hate tomorrow.Dont let this happen to you.Do it now and stick with it,a couple of years goes by very fast.

[debtcc]

Explanation is extremely good

[afw81680]

Good job paying off your debt. But stupid to think you should pay off a small loan that has 0% interest before you take down another debt that could have 20% interest. Come on, start acting like an adult and realize you don't need mental stimulation in order to prioritize your debt and to make it a priority to paying off your debt instead of spending. Grow up.

[paulsballsify]

@afw81680 I think he made it pretty clear by his statement that that's what he suggests, but if someone is in debt so deep, clearly they're not math people and the psychological approach is better.

[monoroma1]

Love your sarcastic voice change,you got me there ahhh

[bornearth]

i really appreciate mr. ramsey's money makeover. it helps me to remember that I really can pay off this debt. i've now paid of a/b $15K. and have a/b $20K left. i wish however this did not count as a baby step. it is really huge leaps to tell you the truth.

[WiteRainbeau]

I am 18 years old and I am so glad I have found these videos now. I am taking notes on all this so that when I get married in the future (and even before that) I can live smart right from the beginning.

[Absolute258]

@WiteRainbeau dude yea! i plan on being married soon and someone showed me his Financial Peace University, amazing. I'm happy someone could supply with this sorta thing cuz i suck with money. it'll be hard, but i wanna save for my family too :) but more importantly, now, so my family has a house lol

[KevinHudoba]

@WiteRainbeau Good thinking!

[firinghorse1]

1:39 think think think think

[Creolebway]

only thing i dont agree with is attack debt regardless of interest?> thats like having a boat with holes and your plugging the smallest hole first while there's a gaping one pouring in 2wice as much water.. i pay off my higher interest first. and guess what I have zero credit card debt and i had 4 cards with balances on them.

[keu143146]

This works. I used to have about 3 chase cards, kohls, maurices, citi, capital one, cabellas and bank of america....I have paid off everything and am down to citi and capital one. I am working with a 0% and an 8.2%.....I have an estimated 14 months....my tax return cant get here fast enough....its still depressing tho.... ): I just want out.....

[gigie555]

Dave Ramsey might sound good, but anyone who missed the gold price increasing 500% in the last 9 years, and calls gold a "dumb" investment,

should not be giving investment advice.

If I paid off my $100,000 debt in 2001, I would be debt free. If on the other hand I had "saved" $100,000 in gold (which is really inflation proof money) I would have $500,000 and after paying off the $100,000 plus interest (about $50,000) I would have $350,000 to spend. Not so bright are you Dave?

[themonster36]

@gigie555 and how would you exactly know that the price of gold was going to increase?

[gigie555]

Gold is simply a saving vehicle during times of high monetary inflation.

It's not a speculation. It's not gold going up, it's the dollar going down.

Your friend advises paying off debt when the government is committed to a weaker dollar. How can that be good advice?

[finallytherock]

@gigie555 It's good advice because the Fed will raise interest rates to fight inflation. It was not that long ago that mortgages were 18-20%.

And any time you buy anything with one eye on selling it you are speculating. There is no reason to buy gold other than you think the price will go up.  Gold does not pay a dividend, it just sits there and looks back at you.

[ThatChinkyThing]

@finallytherock

It's not just about raising interest rates. That might have worked before. It's about confidence. The current levels of debt won't allow the fed to inflate. They may attempt to later in the cycle when price inflation begins. But by that time it will be too late.

[gigie555]

@finallytherock

Please don't use those tired old cliches like "you can't eat gold" or "it just sits there".

Gold has been a store of value for centuries. What would you have it do, get up and do a dance? Of course it just sits there, just like a valuable and rare piece of art just sits there. But it does not diminish it's value. And since gold is risk free it does not need to pay a "risk premium". The increasingly worthless dollar must pay this premium in the form of "interest".

[finallytherock]

@gigie555 Gold has a negative return vs inflation over the last 30 years and add in insurance and storage and you lose a lot of money buying that "risk free" investment.

[gigie555]

@themonster36

You look at the past high growth rates of money supply which is reflected

in the current unsustainable debt levels. Either the government monetizes and leaves interest rates low or we face a depression. Which do you think they will choose?

[finallytherock]

@gigie555 I know people that have "invested" in gold since 1980... it's not inflation proof money. If it were still used as a backing for money it probably would be, but it's not. I'd suggest another hard asset if your worried about the Fed printing money. Try something that has actually gone down in price, not up, try real estate if you have to invest in something.

[jeffsfordf350]

@gigie555 Love the fact that your whole post is full of "IF"s. So what that really means is that you do not have any money and you are big dreamer...... 

[sandoratech]

As he says in the beginning, 80% of the difficulty is in your head. If you tackle the smallest balance first instead of the highest interest rate you build confidence based on a small accomplishment. Hundreds of thousands of people have used this method to get out of debt so against basic math or not IT WORK!!!

[rockinray76]

He is telling us to go against basic math, don't pay the highest interest first?

[ckswartwood]

@rockinray76 As he outlines in his book, DO NOT pay the highest interest rate first, pay the little guys and work your way up! It will keep you motivated. And most importantly - Try it his way, if 98% of americans were concerned about interest rates on credit cards....they wouldn't be broke in the first place....just sayin

[rockinray76]

@ckswartwood I can understand that. Personally, it would drive me insane knowing that I wasn't combating the highest interest first. I feel like I have to put out some fire (debt) with my money. I fight the thing doing the most damage to my wealth first, and hard. It's just how my mind works. I have been using that technique for many years and it has worked wonderfully for me. Peace.

[jeffsfordf350]

@rockinray76 If you still have debt and been doing it this way for years. I would have to say your plan stinks bad. But you are so smart you are blinded by your stupidity.

[Nextinque]

@jeffsfordf350 Lol, wow dude. Seriously?

[finallytherock]

@rockinray76 It's psychology, most people can't handle their emotions as well as you'd hope. If they pay something off for months and don't see a result they will give up. But if they have a "success" by getting something to $0 it provides proof in their mind that what they are doing works.

[clintonskakun]

LOL if we were into math we wouldn't be in credit card dept LOL HOW TRUE! MAN!

[vjl279]

Dave ramsey is not a financial genius

[brandenmurph]

No your right he is not a genius. What Dave Ramsey does is he takes a commons sense approach to financial peace and verbalizes it. Most of his tools are things that will make you think, why did I not think about that. I LOVE debt snowball, it worked for me! 18 months ago I had a $19,600 car loan and about $2,000 in credit card debt, but thanks to his tools on December 28, 09 I am debt free. All I have left is my house, which will be paid off in 5 years, I am 22 years old. Thank you Dave Ramsey!

[jaysmic24]

this is the hardest part of the plan....takes a lot of dicipline sacrifice and stamina..and takes like 2 yrs....

[kennydillon]

We are starting this NOW!

Live like no one else, so that later you can live like no one else!