If You Are Sick and Tired of Debt, the Dave Ramsey Plan Works

When you finally get sick and tired of being sick and tired because you are making payments on your mortgage, automobiles, credit cards and all of those other loans but never get them paid off, this is for you. If you like being in debt, click the Internet Explorer Back Button now.

My wife and I have been on a written budget for years. We pay all of our bills on time every month but never got any of them completely paid off. I have an income of $110,000 per year and my wife is a stay at home mom with no income. The value of our home is $185,000 home with a mortgage balance of $145,000. Debt on two new automobiles total $28,000 and credit cards total $12,000. Total debt $185,000.

I know some people who were doing The Total Money Makeover by Dave Ramsey. Before purchasing his book I began downloading his podcasts daily and was amazed at the callers and their situation. Many seemed hopeless and my heart would feel their pain but Dave always has a solution to get them back on track.

If you are sick and tired of being sick and tired of being in debt, go to your local book store, library or Dave's web site and get The Total Money Makeover. I purchased the book and the CD audio book. You will learn about the Baby Steps. Step 1 is $1,000 in an emergency fund. We previously used the credit cards for emergencies. Step 2 it will be necessary to forget about math and change your behavior to do the debt snowball. It is actually easy and after you see some quick results and you will be an intense gazelle. We are currently on step 2 and have paid off over $7,000 in debt in 2 months and have not sold a kidney or blood plasma to do it.

One thing I had to overcome was to temporarily quit contributing to my 401K. The funds to which I was contributing have been at an almost all time low since the summer of 2007 and I had increased my contributions when the share prices fell. I like to buy things when they are on sale. Even with my company matching my contributions, the snowball calculator proved that I will save money by paying off our debt instead of contribution to my 401K. We will have everything paid off ($40,000) except the house by the end of 2008 and we can scream, "We're Debt Free!"

You also need to see Dave's video Dumping Debt also found on his web site because it explains a lot of stupid myths about debt. I am embarrassed to say I have done most of them.

The Total Money Makeover is not a get rich quick or eliminate debt plan. You will actually pay off the debt you owe and increase your giving. I believe that there is a spiritual side to getting out of debt and that you are going to have to give like never before. My wife and I actually increased our giving to our church before putting the 401K contributions on hold and paid off $7,000 in two months.

It is my wish for everyone to become debt free and build wealth. Give The Total Money Makeover a try. My plan sure didn't work. How about yours?