A Debt-Free Plan That Works!

Document created by robbie on May 23, 2016Last modified by ddmyers on Dec 5, 2016
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Are you tired of having credit card, vehicle, and student loan payments as much as I am? I hope this information changes your life like it has mine! Our society has unfortunately come to the conclusion that debt is an acceptable and normal way of life. If you want to walk on the path to financial success, you have to STOP being normal and get out of debt FAST.

I am 25 years old and have a mountain of student loan debt left to pay, $79,490 to be exact. I am not a doctor or a lawyer. I am in public service, received a college degree relevant to that career, and have a gross annual income of $37,000. I am very aware that I have a big hole of debt to fill and a small shovel to do it with. However, I am determined to pay off this debt before I turn 30 years old!

A very good friend of mine told me about a radio show host named Dave Ramsey. I started listening to Mr. Ramsey's podcasts and read his book "The Total Money Makeover." Mr. Ramsey did not discuss any form of get rich quick scheme. It's about putting your nose to the grindstone, getting intense about paying off debt, and knowing you will prevail. Once I learned about Mr. Ramsey, I was hooked! In the first 11 months of applying Mr. Ramsey's plan, I paid off $12,400 of debt that included credit cards, a vehicle loan, and some student loans.

In The Total Money Makeover, Mr. Ramsey spoke about his 7 Baby Step plan to get out of debt. The first step is to save $1,000 and set it aside for emergencies only. Baby step two is where you use the snowball method to pay off one debt at a time. The snowball method is when you make minimum payments on all debts except for the one with the lowest balance. Once you pay off the debt with the lowest balance, you apply the minimum payment and anything extra you were throwing at that debt to the next one with the lowest balance. When you complete this process and are completely debt-free, you are ready to continue to the next five baby steps.

This is a proven plan that works! I found the most important part of the plan was to create a written budget and cut up the credit cards. I have been working a lot of overtime and taking on second and third jobs on the side. It is a lot of hard work but I am already reaping the benefits. The bank doesn't own my car anymore and I am no longer a slave to credit card payments. The only debt I have left is student loans, which I am eager to get rid of within these next five years. Listening and applying Mr. Ramsey's debt-free plan has already made a huge positive impact on my life and I know it will do same for you.