- BYOB
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Re: Journey to debt freedom
While I am a big self-responsibility person, I have sadly in my lifetime watched credit cards go from being something only the "rich" can get, to a flat-out neccessity thanks to credit card companies. They have weaseled their way into every aspect of our lives whether we like it or not. Even if you don't use them, just try to do something simple like booking a hotel room without one. It's damn near impossible. It just ends up being a vicous cycle.
I, too, am working on paying them off as soon as I possibly can. It seems like I go in waves. I'll be doing really good paying way more than my minimum due, then money gets tight and I have to go back to paying only the minimums for awhile. It's rather frustrating.
Last edited by BYOB (2/11/2015 7:12 pm)
- Common Sense
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Re: Journey to debt freedom
Two words..... Dave Ramsey
He is on the radio over the weekend. Check the station for the exact time. It's a great program.910 AM WSBAYork, PennsylvaniaCheck with Station for airtime
wsba910.com1230 AM WRBSBaltimore, MarylandCheck with Station for airtime
wrbsam.com
Check out his web site.
The Seven Baby StepsBegin your journey to financial peace
“We hold these truths to be self-evident,” former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”
- Goose
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Re: Journey to debt freedom
Good advice.
I used to listen to Dave quite often, but kinda lost track of him when I moved.
Ramsey offers excellent financial advice. Real, and helpful advice. Not the next "big thing, get rich quick" stuff.
Last edited by Goose (2/20/2015 4:41 pm)
We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists.
- TheLagerLad
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Re: Journey to debt freedom
Common Sense wrote:
Two words..... Dave Ramsey
He is on the radio over the weekend. Check the station for the exact time. It's a great program.910 AM WSBAYork, PennsylvaniaCheck with Station for airtime
wsba910.com1230 AM WRBSBaltimore, MarylandCheck with Station for airtime
wrbsam.com
Check out his web site.
The Seven Baby StepsBegin your journey to financial peace
My only beef with Ramsey is that he wants you totally off the grid financially. No credit cards, carrying around envelopes of cash. And the whole religious aspect of it turns me off as well.
I see his point about the psychology of paying for things in cash versus just swiping a credit or debit card, but I believe you need access to capital for emergencies, wanting to start a business, make a needed home improvement or whatever. So you should have credit cards. Just don't use them.
In terms of debt freedom, my wife and I have never what I would consider heavily in debt, but we were for a while just horrible at effectively managing our money. Somewhere around 2008 we started saving consistently as well as paying down debt and today we only have three debts
Mortagage
My Harley Road King (which will be paid off in April -- (Hooray)
Wife's student loan (she finished school as an adult - loan scheduled to be paid off somewhere around 2072) 
We have credit cards but I only use one of them and that's strictly for business travel expenses.
So debt freedom can be achieved. In 7 years we went from having zero savings, about 5-7k of credit card debt and two car loans to very little debt and a nice little nest egg.
And because we got better at savings, we're able to fund our IRAs with something, as compared to nothing pre-2010.
I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump
- Goose
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Re: Journey to debt freedom
I lost track of Ramsey in 2008 when I moved. No area radio stations covered him. So, I really don't recall anything about his religion. I just remember him giving some good basic advice to callers who were in serious trouble.
I have two credit cards which I use a lot. But my iron clad rule is that the credit card bill gets paid in full every month. If that means no pre-pay of the mortgage or contribution to the emergency fund, then I just kick myself.
Lately I have gone back to cash for any small local merchant that I deal with. The credit card companies aren't good to them.
So, I've managed to put together a good sized emergency fund, and my only debt is the mortgage.
Of course, my cars are getting rather elderly, so that could change at any time.
If I could offer just one piece of advice - don't carry debt on a credit card. Whatever it takes.
Last edited by Goose (2/20/2015 5:27 pm)
We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists.
- tennyson
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Re: Journey to debt freedom
Two words..... Dave Ramsey
He is on the radio over the weekend. Check the station for the exact time. It's a great program.910 AM WSBAYork, PennsylvaniaCheck with Station for airtime
wsba910.com1230 AM WRBSBaltimore, MarylandCheck with Station for airtime
wrbsam.com
Check out his web site.
The Seven Baby StepsBegin your journey to financial peaceMy only beef with Ramsey is that he wants you totally off the grid financially. No credit cards, carrying around envelopes of cash. And the whole religious aspect of it turns me off as well.
I see his point about the psychology of paying for things in cash versus just swiping a credit or debit card, but I believe you need access to capital for emergencies, wanting to start a business, make a needed home improvement or whatever. So you should have credit cards. Just don't use them.
In terms of debt freedom, my wife and I have never what I would consider heavily in debt, but we were for a while just horrible at effectively managing our money. Somewhere around 2008 we started saving consistently as well as paying down debt and today we only have three debts
Mortagage
My Harley Road King (which will be paid off in April -- (Hooray)
Wife's student loan (she finished school as an adult - loan scheduled to be paid off somewhere around 2072)
We have credit cards but I only use one of them and that's strictly for business travel expenses.
So debt freedom can be achieved. In 7 years we went from having zero savings, about 5-7k of credit card debt and two car loans to very little debt and a nice little nest egg.
And because we got better at savings, we're able to fund our IRAs with something, as compared to nothing pre-2010.
I had the same problem with Ramsey as Lager. Overall his advice is good. I, too, however thinks he goes overboard on getting rid of credit cards. I believe it is because of what he (and many) hit with credit. It is how you use credit and what you use it for.
"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
- Tarnation
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Re: Journey to debt freedom
It was from just occasional segments of Dave Ramsey that I learned the concept of using the freed up cash from one paid off debt to begin paying down the next debt.
When we paid off the mortgage last year the money which would have been mortgage payment went to paying off the vehicle loan.
It was great having $1800.00 of lowered monthly expenses when I became unemployed later in the year (that has reversed, finally).
Life is an Orthros.
- BYOB
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Re: Journey to debt freedom
I, too, watched Dave Ramsey for awhile. I don't remember anything religious aboout his show when I used to watch. I did learn alot from him by way of him being very motivational. I don't think he ever really said much that I didn't already know, but it was good to hear it out loud from someone who's been there and gotten out. The most profound thing that I learned from him was to resist the urge to pay off the highest interest rate card first if it's not the smallest balance. He said that you need to feel what it feels like to pay a card off. It's imparitive to do that for the mental aspect, which no one else seemed to put much importance on except him. So I did what he suggested, and paid off the card with the smallest balance first and he was right, it felt great! It was then that I understood what he was talking about. It gives you the motivation and stamina to keep at it without getting depressed and saying 'screw it'.
Good call to recommend him CommonSense.
- Tarnation
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Re: Journey to debt freedom
It has been (slightly more than) one month since Joan's opening post.
How are we doing? Making progress?
Life is an Orthros.
- jconcilio
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Re: Journey to debt freedom
So here's my March 2015 update:
Discover card: $5,237.82 (Last month's number for this was wrong somehow - this is actually down $183.96 since last month.)
Goal: Get this below $5,000 by the end of April. This is the only card I currently use (I do monthly recurring subscriptions and Kindle book purchases on it, and then use the Cashback rewards) but I want to carry a much lower balance, or none revolving at all, eventually.
Union Plus Mastercard: $5,808.77 (Down $149.99 since last month.)
Goal: Get this below $5,800 before the end of March. Had already set this goal, didn't realize how close I'd get just with this past payment. Hopefully a no-brainer. This card is closed and just being paid off at a low APR.
Citi Visa: $3,871.08 (YAY - hit a goal on this one, which was to get it below $4,000! This is down $157.85 this month.)
Goal: My goal is to pay this card off before the end of this calendar year, which is a little bit of a stretch but doable. My next-step goal is to get its balance below $3,500.
Honda Financial Lease: $17,711.45 (Down $227.79 this month.)
Goal: Not actually related to the lease, but my hope is to have two of the three credit cards paid off when the lease comes up for purchase in two years and one month.
Joan
I'm just here for the party.
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