Who here uses the Dave Ramsey or similar methods to paying off debt? How has it been working for you? Trying to get the wife on board to do so because I would really like to be debt free at least so besides the house. However it’s been a hard sell because she likes nice things and doesn’t have patience. We by no means are living beyond our means at the same time though just she would rather have that new vehicle, etc now instead of saving up to pay cash.
1995 Ranger 487VS / 1998 Mercury 200 EFI
It’s gonna be hard to sell your wife on his plan if she likes to spend money. Being wealthy is a mindset but instilling that mindset is tough. Even if she doesn’t want to do it, you can work on being debt free on your end. Just know that you’re gonna always have to keep her in fancy vehicles and what not.
I don't see why you can't have a mix of paying off debt and having a little fun with money. I see no point in dying debt free.
Thanos was the hero
The baby steps plan to paying off debt works if you commit to it. It sounds like the toughest part for you will be getting your wife on board? Have you taken the fpu class? I'm guessing you haven't based on her resistance but getting her through that class with others in the same situation may bring her around. Only debt we have is our mortgage, we pay for everything with cash, only way to live.
Talk to people at church would be a good start. In a nutshell you’ll live below your means. I don’t agree with Ramsey on everything, but a whole bunch of it is common sense truth. It’s hard to be content in America.
I doubt you will ever be able to do the Ramsey method in that situation. Start cutting into her shoe and purse fund and see how fast until she makes you miserable.
Common sense...spend less than you take in...put every extra dollar towards debt...lowest balances first...3-6 months emergency fund liquid...15 percent into retirement...15 year mortgage with 20 percent down.
Will never work without your wife onboard...and no offense, but if you are in debt for “nice things”...your already living beyond your means.
Only thing better is to pay with a credit card that pays you cash back and then pay the balance off every month so you never incur an interest charge.Originally Posted by skeeterator
If interest numbers work out you can also consolidate all your debt into one loan and then just pay on that one loan but also pay as much extra on the principal each month as you can afford.
Yeah, good luck on that!
I had one girlfriend that had over 150 pairs of shoes, not to mention three closets full of clothes, purses, jewelry etc. Maxed out credit cards, and I was like wtf for? “Shopping makes me feel good” was her response. We didn’t last that long since we didn’t agree on other things as well lol.
Going that route typically gets people in worse shape in the long run. Most people don't have the discipline it takes to pay any "extra" funds they have on the principal. They'll take the money saved by consolidating and blow it on something else or worse yet, take out new credit cards, personal loans, car notes etc. I've seen it firsthand. Just stick the plan paying off smallest to largest debt and close each account as they're paid off.
We would be debt free (besides the mortgage) right now if we didn’t have to go out and buy that nice new (to us) camper and now she is taking about a nice new (to us) Tahoe. It’s not so much about the money it’s just she has zero patience so instead of saving for an extra year or two and pay cash she wants it now. Just trying to find some way to convince her to try it and get on board while at the same time not be in the dog house the whole time for making her do something she doesn’t want to.
1995 Ranger 487VS / 1998 Mercury 200 EFI
Maybe see if she will compromise and say we will look at a used Tahoe once the camper is paid off.
I doubt it will work but hey worth a shot.
We use it, or a revised version of it anyway. Before finding Ramsey my wife and I had already built up an emergency fund and began investing in our retirement accounts. Dave would have you take all savings except for $1,000 and use it to pay down debt while also stopping any retirement investing. For better or worse, we elected not to do that. We kept our emergency fund, continued our investments, but we began putting everything else towards our smallest debts and using his "debt snowball method". I can't say enough good things about it. We are now 28 years old with no debt at all other than $20K left on our house that will be paid for by the end of the year.
I'd also encourage anyone to start keeping an annual net worth statement. It's encouraging to see your net worth growing so rapidly by eliminating debt.
Divorce her give her half find one half her age with nothing and start over
~~1995 Gambler~~
Mercury 250 ProXS
Bobs 10" AJ
Dual Power Poles
2-HB 1199's HB 1158 HB 597 in dash
Ultrex 112
"Runs like a cheetah... with his @$$ on fire"
I used the bonus method. Paid off everything except my truck and house this year. Next year the truck will be paid off and will drop a large chunk on the mortgage. Having very few debts is a very good feeling. Even better with a plan to pay them off way before the expected dates.
Took us a while, but we did not realize how much Amazon went on a credit card. Its so easy to click and shop and not think about it. We finally made the decision that if the cost was below $100, it went on the debit card. So either we pay cash, or we don't get it. Amazing how quickly that credit card bill dropped just from Amazon. Additionally, we have taken an approach that we do not want any monthly bills. Tried everything possible to pay off a car loan. Then a mortgage. We also took at look at 6 months of our bills - amazing how much fast food or going out to dinner adds up. While we have not totally cut that out, we make better choices now. Made good decisions around TV/Internet/Phone. We have been working at it for some time now, but we are literally debt free now.
Its not all that hard - you just need to have a plan and stick as close as possible to the plan.
Steve
2006 Sylvan Expedition Sport
2006 Yamaha F150 TXR s/n 63P L 1041829
Lol
It worked for my wife and I. We have been debt free for about 5 years now. Yes people made fun of us years ago. Now they are asking how we did it and they are jealous.
Interesting. So he says to not save for retirement at all until debt is gone? Just seems to go against everything else that says invest in retirement as early as possible.
1995 Ranger 487VS / 1998 Mercury 200 EFI
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