1. If you have Credit Cards with Outstanding Balances.
A. Cut up ALL Your Credit Cards, and do NOT open new lines of credit.
B. Call those cards and ask them to reduce the interest rates.
2. Save or Earn an Extra $150 - $200 Per Month.
3. Pay this Extra Money off ONE Credit Card each Month until it is Paid Off.
4. Continue to Pay the Minimum of ALL your other Credit Cards each Month.
5. Once One Card is paid Off Apply the TOTAL amount to a Second Card.
6. Continue until All Your Credit Cards are Paid Off.
7. Apply the Same Method to your Car and House Loans.
8. Do Not Borrow Money for Consumer Goods Ever Again.
9. Use this Monthly Amount to Build Your Assets.
Using this Simple Method, as John Cummuta says, most People can become Debt Free in 5 to 7 Years and Wealthy in 10 to 15 Years.
5 comments:
3b. Start with the highest rate.
Anonymous -
actually Dave Ramsey says start with the smallest debt first. If that's the highest intrest. that's fine. But by starting with with the smallest first, you are encouraged to by your successes to continue on to the next one.
I have wondered why he focuses there. Alright, it's for psychological motivation. I can't agree, but I do understand.
Don't forget to move your cards to lower rates, or at the very least call and get them lowered!
Aimee -
If the cards are cut up, this is kind of mute, as the idea is to get rid of all debt, not create new debt or go back in debt.
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