Dave Ramsey

However, many people tell me that yet come the credit cards as your perfect instrument to acquire what they want and we care about the degree of indebtedness that they can reach and do not realize that coming to this term are in constant exposure or risk a financial meltdown at any time for any event of life: accident, health problems, theft, dismissals of work etc. The question I ask them would be how you would be if instead of religiously pay minimum or extraordinary membership fees to meet your commitments in debt you monthly invirtieras that money or save it? In that situation you wouldn’t be now? I think, without a doubt, much better financially. Need to be able to live without the need to use credit cards to buy goods and services that you want to execute a plan that I’ll summarize: performs a budget of all your sources of monthly income and your expenses, the remainder will determine how much cash you have for the next step. You need to save for an emergency equivalent of three to six months of your monthly income fund. If these already indebted to the stop with your credit cards, this step requires greater effort and sacrifice with the search for additional income.

Get a list of all your debts with your balance and amount to pay the minimum each month. It sorts this list from lowest to highest debit balance. Once done the first three steps begins paying debt No. 1. with one amount greater than the minimum balance, the rest of the list do meet your payments cancelling the minimum amount required. When you are done cancel debt No.

1, the amount that you usually pagabas by 1 debt is sums to the amount that you pagabas the debt 2 and so on. Thus iras cancelling the smaller debts, what will motivate you to follow the plan because these seeing as you progress in your goal to get rid of debt. When you finish paying the totality of all your debts, now bring the sum of all your contributions to your monthly savings up to a year of emergency fund. As you can see it is a very ambitious plan that required much sacrifice and perseverance but who will offer some spectacular berries in the very short term. It is a plan that will teach you the true value of money, and you test if it is possible to live financially stable and never use credit. As Dave Ramsey says in his book the complete transformation of your money you must be willing to live as anyone then live as anyone.