I got out of debt one month before my 40th birtday. I'm now 56. I can tell you it never gets old being out of debt. I think about it all the time and am filled with gratitude. After ]paying off my debt, my net worth was basically the value of the house, as I used all savings to achieve it. So basically my net worth was 140,000. I swore I would never borrow again and instead I would invest in the market consistently and automatically. 16 years later, I'm just shy of a 2 million net worth. Again, not bragging. Just hugely grateful!
I’ve been debt free since at least 2010. I refuse to borrow anything. I went years where I put a wad of cash in my wallet at the beginning of the week, and would only spend that. And I only used the credit card to buy gas. Now I’ve lightened up and regularly use the credit card. But I always pay off the balance during the month. I paid cash for my most recent vehicle purchase.
Becoming a minimalist made a huge difference for me. I culled and gave away what I really didn't use/need and learned to really really really appreciate what I already own.
I was born a minimalist. Truly, I hate junk, I hate excessive. It's such a freeing way to exist. Oddly, I'm an independent housekeeper of 20 years. Let me tell ya America's got junk and a lot of it. The unessessary garbage people buy and hang onto boggles me However it gave me a job and a means of support😊
What you said at the 2:30 mark is right on- you have to WANT to be debt free. You have to make it a priority every day. I made this decision back in 2020. I bought a car and my goal was to pay off by 12/31/21. I met that goal. We our currently working on our last debt, our mortgage which will be paid of May 2024. We are making 4 payments per month and we are able to do that because we have no other debt.
There is no feeling like going to work knowing if you got laid off, you are not a slave to car notes, mortgages, student loans and credit cards. You are at Unicorn status of life when you are without obligations -- to any form of loans out here. To me, being debt free to those things i mentioned, allows to enjoy walking through life instead of running through it. You can enjoy pure time that is an obligation to yourself instead of someone else.
You know, your honesty about not achieving your goal and not giving up is so helpful. It is such a blessing to have the flexibility to adjust a goal date. Eventually you will achieve it.
I walked the steps by Dave Ramsey long before I knew him - somehow it seemed the most logical way of doing it. Debt extracts so much value, it’s unbelievable. I’m now at step seven and working to create a passive income stream from investments that will cover most of my fixed costs. Many people criticise and mock Ramsey as “outdated” however common sense is never outdated. It worked for millions of people so I don’t care about the critics.
This was just suggested to me by good ol' TH-cam, and I must say that I love how you calmly share the message...not yelling or judging people. Thank you
the best thing I ever did was follow a budget. It allowed me to see where all of my money was going and then the left over money after bills could be redirected towards savings, investments, debt etc. It took a good 3 to 4 months to have a solid foundation of a budget for me, but now about 10 years later I am rolling and things are running smoothly. You MUST know where every dollar you earn goes.
Thank you for this video. I follow Dave Ramsey and we are about to move from our large house to a smaller place. We want to be out of debt and our goal is to do it within 3 years and 10 months. The funny thing about making such a decision is I feel God has opened so many doors for us because we are willing to let go of what we do not deserve at this moment, which is this big beautiful house. I also want to start a TH-cam channel like you. I appreciate sharing your journey and helping others. Sending you blessings.
Why don’t you deserve a nice house? If it is because it’s out of your budget, I get that. But, if it is you thinking you are not good enough, you need to think better of yourself!
This is an interesting comment...how people prioritize and justify their spending is revealing on many levels...and what you choose to deny yourself, especially if it is something you could afford, is an opaque window into your psyche.
Rob - Excellent video. As a boomer I remember what my father told me after I bought a Schwinn Sting Ray bicycle witth the banana seat with my paper route savings. He congratulated me and said that I earned it but remember one thing "nothing is a good deal if you cant afford it" (I bought on sale). His defination of affording something is still having savings in the bank and paying cash for what you buy. I never forgot that wisdom my father passed on. Retired at 60 with no debt. Unfortunately too much tempatation to buy too much "stuff". Like you also have one car and do just fine. Keep cars for 10-15 years and take good care of them is a fantastic way to control/get out of debt. Keep doing what you are doing - helping a lot of folks out there!!!😊
I'm still paying off my college debt 10 years later. From 30k to 3k.... now is the hardest since my bills are higher than ever before due to inflation and raised rent and less hours of pay.
Hang in there man, so close! But also if things are that bad you might need to find a cheaper place to live and also a job that gives you full time hours with adult pay. You know the cost of groceries and gas isn’t the real problem brotha 🖤 (even if it sucks)
Stay the course you're almost there. I have 3,500 left to pay on 23,000 truck. I have that in savings fs but it's all I have so I gotta just keep plugging away at it. We'll get there
We love Ramsey and his team! We followed the baby steps to get out of debt and build wealth. On average people who follow the baby steps can get out of debt and reach baby step millionaire in less than a decade.
I'm so glad you said increase your income. If that wasn't in this video i was going to blast off! You have to increase your income in all of this. You can't be lazy.
Avoid taking on student loan debt, either for yourself or for your children. So many of my peers, flush with pride that Junior got into a good college, are signing away their financial stability and retirement right now. The interest payments can be crushing. Look at some alternate routes to a college degree, such as doing two years at community college and transferring to a state university. Private schools with large endowments might actually give better financial aid than public schools, so comparison shop carefully, considering the value and not just the prestige of the degree. Also -- tough love here -- some 18-year-olds are not mature enough for college, and a year or two of CC or work before going off to school will help ensure you get value for your tuition, rather than squandering your retirement savings on keg parties and incompletes. Also question whether a tuition-based Master's degree is a good investment, or just a source of oppressive debt.
Jennifer. If someone would have told me or explained to me the amount of students loans that I would have to pay back.................I WOULD NEVER EVER WOULD GONE TO COLLEGE.........................
I agree! I tell people this all the time.I don't understand how all these people think its ok to take on so much debt.It's so normalized.They push 4 year schools in high school and really don't give a lot of options to the students.This was how it was at my daughters school.
Yeah, it's usually very shocking to me how much I hear people have in student loan...its just too sad that yound people are trained to start off their life with so much debt. However, depending on how the Masters degree is planned, I beleive that in many cases, it's helpful-but has to be very well planned
financial aid depts at schools prey on kids to take out huge loans they dont understand. happened to me. it sucks. cant buy a house at that age but u can get a loan for the same amount for school. make that make sense 🤦🏼♀️
I became debt free last year and it's the best feeling ever. I avoided students loans and I think that's the best decision I've made in my life. Seems a large amount of people's debt comes from student loans. Now I'm working on saving for a house, that is if I decide to buy one. Still debating on whether it's worth it.
Thankfully I was never in an unmanageable amount of debt. We were able to use the stimulus checks to pay off all debt (except mortgage). The feeling of being debt free is awesome
We're in a good spot. We haven't taken on any new debts and we are are close to 4 months in an emergency fund. I've also started funding a sinking fund for big purchases like cars.
I started following Dave Ramsey in 2014. I have paid off over $154k in student loan debt, have a hefty emergency fund and have money in a high yield savings account. I do still have debit but I feel so free with having an emergency fund in cash and money in savings. I would be totally out of debt but my husband still hasn’t gotten on board with saving and not spending.
This was actually helpful I appreciate the specific steps . Most experts and I saw that loosely just want you to sign up with them and never give any info or how to’s
People have to SEE the problem before they can want to get out of debt. There is a shopping/spending addiction going on that has to be addressed. I have had $23k in debt ( with minimal overhead expenses) and I was in full denial. I got counseling for it. I had to take a look at why I didn't want to be debt free..it was a black cloud over me. It was shame disguised as debt. It is also a punitive parent substitute. My parents could no longer nag and hassle me with their authority, but creditors and legal situations had the same punch. I just switched the appearance of my parents. I had to be under their thumb and had to stay in their good graces. Those days are almost over..
If you are sick and tired of being in debt and got to a place where you are really disciplined with your budgeting either because of necessity or practice you might want to look into velocity banking. It’s not for everyone but those who are ready to really hunker down it might be a good option
I did this Dave Ramsey course back in the early 90's and got out of debt and stayed out for many years! Today, I'm back in debt due my business, which is a little different... but I want to get out of That, as well. I Hate debt, but they say without debt, we have no economy.
Rob, a few years ago I did just what you're talking about I was so sick of all the credit cards that's how they were draining. I did start with my biggest one that had 22% interest. And took the extra money that I had when I paid it off to pay off the next bill and it went so much faster than I had imagined. Now I'm taking that extra money and puting into a Roth ;)
I so appreciate your great tips but with a gentle manner, I think it’s important with the guilt attached to money issues. Feeling self compassion is vital for me to feel I can tackle it, otherwise I get stuck in a cycle of feeling bad about my spending, putting my head in the sand and making the same mistakes again.
I am thankful that I've never experienced this so far in my life. I am grateful to God that I didn't have student loans from BSc-MSc-PhD, as I received full scholarships at all three levels with additional funding and support from research grants and other opportunities. I've always been a saver, so that makes it easier. I feel for folks who are in debt and hope you all can turn it around. ❤
Your minimum payments are set. You can't not pay any. They simply all have to be paid at the set amount regardless of loan size, credit car or interest. I've never missed a payment!,
Thank you for this video, very clearly explained and step by step. Question: I have a credit card debt of $3,000 and I got a new credit card with a balance transfer 0% apr for $1,000. do you think is worthy to take it and pay this to my cc debt? thanks for your response.
I've always had a £500 car. I've never had a streaming service or purchased any nice things. Sold anything good on ebay. It's living hand to mouth waiting for a pay cheque that makes it hard. Interest racks up!
Hi Rob: Can you give advice for someone who doesn't have a mortgage but is trying to save for a down payment on a house? Should the Down payment be "considered" your first "bill" to be paid? Otherwise how do you get out of renting? (Owe Student loans and a car loan, no credit cards) Thanks
Having a house is a lot of expense. Payments are mortgage, insurance, home repairs, taxes, etc. If you'll own a home, find ways for the home to help you pay it like renting a room, renting basement, etc. If still renting, you can minimize cost while saving for a house by having roommates if it's possible or getting a cheaper apartment.
Hmm to me it depends. People talk about Insurace, taxes, repairs but there's nothing like owning your own home If you're paying rent you're covering the owners taxes, insurance and mortgage. I'm blessed I bought a fixer upper 19 years ago. It was cheap because it was a dump Husband and me remodeled it over a 9 year period. It could have taken less time, but we did all the work and paid as we went The mortgage Is down to 52,000 and our low interest rate affords us a... Ready? 359.00 a month payment and that's including taxes 4 bedroom, 2 full baths You can't refinance rent Good luck I hope you get a house
I am working on 4% monthly interest rate now. whenever it will finish, I will go with Ramsey rule but right now I must pay off this monster. whatever you say on credit cards, I consider it as a gateway of hell. I have already closed two. Still three to go. within this month one will go. next month another one and in December the last one.
Thank you for such a great video! You have a calming presence which really helps the anxious nerves as I'm going through tabs of spreadsheets, statements, and TH-cam videos about debt. This has been my favourite!
We are debt free with a payed home, two cars and two kids and much more at 40, we have never had any kind of help. Just don’t buy things you don’t really need, and live in a way where you can put away half or at least a third of your income. Don’t take credits unless it’s your home.
Rob has a lot of great advice here. I think the most important is the first step of understanding the details of your situation and track progress monthly.
You CAN get out of debt even on a low income. One strategy that has helped me is every time you get paid, take minimum 10% and move it to savings which will be used to pay down debts. You start to see how easy 10% is and then on many pay periods you will be able to do maybe 20%. When you get out of debt, continue to take that same 10-20+% and put in savings which is there for you in the future.
Stop buying stuff to impress other people. Live within your means. Also Stay home - every time you leave your house - you’ll be spending money somewhere. Stop giving your adult children money for anything ! Their young - they need to go out & get a 2nd job - they have more years ahead of them to make money !!! This I see happening all the time ! In the end … start saying NO to yourself & everyone else ! Real good video tho !
In one of his books Robert Kiyosaki had a system for getting out of debt also. Similar to yours. He said start by finding $120 extra a month, use that to pay down your smallest debt first, then snowball (like your method) into other debts--every time you pay something off add that payment to the amount you are paying to the next debt. He said by this method in about 4 years you can pay off all your debts. He said some other things about it too, very interesting. I'm not even sure which book it was, I've read several of the Rich Dad series of books. Hope this helps someone God bless. His books are worth reading, don't remember which one it was though.
120 a month is 4 a day. i like that idea, could be cut out the daily coffee, or start a sideline and make a profit of 4 a day. or look at all expenses and try to cut the total by 120/month. a lot of food for thought there. thanks.
I have about 7k in debt right now.... This is easy to said than done for those with a low income..... I have money and can afford to have debt too many are suffering from destitution.....
Excellent presentation I totally agree with you , working on lowering the interest has really worked on me for a long time . Thank you for those excellent inputs.
I've noticed almost everyone that has a TH-cam video on how to be debt free has a high paying job. People that live on a low income feel like it's impossible or you have to get a second job. The debt snow ball method is the best way if you can be patient trust the process and give yourself credit for making such a great and sensible decision.
This was so helpful Rob! It gave me hope haha. You explained everything perfectly and in a way that didn't sound overwhelming.Thanks for making this video!
I’m looking for resources of how to get out of significant debt at 65. I’m trying to determine if it makes sense to take my Social Security a little early and put that towards debt. Since I am self-employed, it shouldn’t impact my Social Security eligibility.
Thanks, Rob. My question is, in mid fifties, do we add a bit more to our mortgage payment (interest rate is 4% 5% ish and if we did nothing but pay the minimum we could pay it off in five years), or do we add that to our 401ks, which are over full match contribution but aren’t at maximum for the year - and we are behind in the size of our nest egg due to about fifteen lean years.
Kelsey you’re not the only one- not by a long way. We ALL make mistakes. They do not define us as people however. You are not your mistakes. You are so much more than that Bigger, brighter, stronger, more beautiful, intelligent, loving, resourceful, creative, kind and compassionate. As are all of us in Debt for whatever reason. So hold your head high, smile, take lots of deep healing breaths and tackle the problem day by day, bit by bit. Never give up Much love Rae xx
Thank you. I'm learning. New with these credit cards. By choices, but I need to bring these cards down to zero! No longer uses them and paying them off SLOWLY!!!
I tried to do a zero balance transfer. No one wanted to play ball with me for more than a few thousand. My Fico score was in the low 700s. My credit union would not consider a loan because I had too much debt at $15k. I got it under $10k. I was able to turn revolving cc debt into a straight loan at 10% not 15%. The debt could only go down, not up with revolving debt.
Thank so much for sharing this video, this was perfect timing because I just came across it. This very is very knowledgeable and very interesting of the breakdown to become debt free which I'm thriving for .
Im taking all these steps but I have already defaulted in 1 credit card with 10 k in debt. I heard there is some government help for this. Any thoughts?
Thank you for sharing. I didn't like you're wording, "we failed." You should have said that by that date, you had made great progress but it did take 2 more years to reach the goal and another few years to wipe out your mortgage.
Hi Rob, we have everything paid off including our residence. We have two rental mortgages with 3% interest rates. Do think its wise to pound to pay those off or take money and instead of investing, Ramsey would say to pay off but what is your perspective?maybe an video on this subject. Thank you for your thought and time.
As long as you’re not living off of the rental income and have healthy reserves to deal with vacancy/repairs I’d take the profits from the rental income and make additional payments on their mortgages. Almost like reinvesting a dividend.
I have a rental with a very low interest and payment and balance The way I see it, if you sold hats for instance, you have a store front that you pay rental on to make a profit off the hats. There's no difference in having a mortgage payment to make money off the house Unless you're selling digital downloads for Income, every business will have sone cost to run it
I'm drowning in debt, and I just don't know how to get out. I pay too much in rent and can't move because my credit is bad. I lost a job, and I owe taxes every year. I currently work two jobs and don't sleep, but I still can't make it. I really need help getting back on track.
Great advice Rob - really easy to follow tips and ideas that anyone can do. It will make a difference - may 2023 be the year everyone starts their debt free journey - I like how you termed that. Question should a person go into debt in order to make money - like renovating to rent out?
I did. It worked well for a while. I have an Airbnb. Bookings dropped off a cliff last November. It was great for 7 years. I'm waiting to see if it recovers in the spring However, if it doesn't we can always sell ths house and still make a profit I do not agree with stock market investing. The return comes to slow. With real estate you have the value asap. Good luck
I have only mortgage on our home. I have an emergency found and we have a retire fund, but I think this scenario isn't enough for me and my family, cost of living skyrocket and even if we are able to increase our income I felt I miss some investment for the future. One question why you want to pay your mortgage? My % pay on my house is so low can I have more with interest on the most secure investment. Thanks
Somewhat I did that, great advice, it works: sold my motorcycle, moved out to a smaller place so lower bills (it takes less to heat and cool our house now), the new place is out of a gated community so no more mantainance fee, changed one of the cars to a hybrid so less gas (looking forward to do the same with my wife's car), cheaper vacations, installed solar panels so no more gas bill and little to none electricity bill, cooked more, no more monday through thursday dine outs, no more gym membership but bought a cardio machine and dumbells and walked more my dog :) (I already recover the investment vs gym), I took a nigth school job as a teacher (pays for the monthly gas of a hybrid car, and 2 weeks grocery)... no more debt and we live a confortable life.
Thank you for sharing. Still on step 2. Geeze. I'm still afloat. My only car for work died (I'm required to drive). Garage & plant sale this spring will pay that replacement off.
Other things you can do it cut out unnecessary entertainment and leisure expenses. For example going out to socialize, concerts, movies and dinners. Do them on a budget or only if it is necessary. You be amazed how much you will save just by not going out to socialize on a daily or weekly basis. Just saving 20 on tips from eating out 4 to 6 times a month which is 80 to 120 just in tipping makes a difference.
“What if” getting out of debt is the wrong objective? In an inflationary environment, future debt payments are made with less valuable dollars. Instead, “what if” the focus should be on (1) restructuring debt with collateralized lending and (2) acquiring cashflowing assets that will self-amortize the debt. Hedge retained and principal amortization put on automatic
Yes it does. My wife and I are not on the same page. She still spends and I am selling all of my toys and books and clothes on ebay / garage sales. Not eathing out. No tv service. No coble. Disney+ only 1 to 2 times a year. The worst is eating out and Amazon shopping for toys! Agh. Now with kids they need 15,000 for college this year alone! I used to have 2 jobs but my wife only works part time. (1 job). she just bought a newer car!
We never, ever eat out. Not because of the expense but it taste terrible compared to home cooked food so we cook daily The icing on the cake is it saves a ton of money We do get a coffee and pop a few times a week at McDonald's and were always so floored at how many people are in the drive through. We look at ths screen to see what they spend. 25,39,15 oh my! Who can afford that
I'm not American so I'm just here to learn, rather than put into practice the steps into practice. I was interested in everything and found some contrasts. The first thing is, I've heard of a 'deductible 'but I'm not sure what that is. Another thing is having 'medical debt', which is something people in other English-speaking countries don't need to worry about so much. That goes into the need for a 6-month emergency fund. Perhaps there isn't quite the need for that due to the lack of need for personal medical insurance (everyone is insured by the state). One more thing is the student loan debt: again though there are 'student loans', it doesn't get that bad in the UK for example. In parting, I would like my US cousins to think on the fact that Walter White wouldn't have needed to do what he did if there had been a more equitable society (in terms of medical expenses). On the other hand, having the state take on this and other responsibilities might make you lazy. Saying that, if your goal is getting debt free, most Europeans, for example, don't get into debt in the first place - but they do pay higher taxes. There you have it.
Stop thinking you cant do it because you can! Ive met an Uber driver who was able to pay off all of his debts and it was in the 100 of thousands. Stop worrying about how long it'll take when people soend years in college racking up those student loan debts. Be strategic and before you know it it'll be paid off!
Hi I use the avalanche agghh not sure whether to go snowball as yes don’t see anything as it takes u soo long. Does save interest but confusing! My debt is going down lol thanks
I got out of debt one month before my 40th birtday. I'm now 56. I can tell you it never gets old being out of debt. I think about it all the time and am filled with gratitude. After ]paying off my debt, my net worth was basically the value of the house, as I used all savings to achieve it. So basically my net worth was 140,000. I swore I would never borrow again and instead I would invest in the market consistently and automatically. 16 years later, I'm just shy of a 2 million net worth. Again, not bragging. Just hugely grateful!
Wow! Incredible! How did you invest and what did you invest in to become a millionaire?
@@FaithfullNess I invested everything in VTSAX!
It took me 5 years to pay off 40,000, and now I am debt free house and car is paid off and no credit card debt, fico score 842 , and it feels good
Congrats!
@ToOpen6seven thank you, I was determined, to be debt free,except for utilities and insurance, and maintaining, my house 🏠
I’ve been debt free since at least 2010. I refuse to borrow anything. I went years where I put a wad of cash in my wallet at the beginning of the week, and would only spend that. And I only used the credit card to buy gas. Now I’ve lightened up and regularly use the credit card. But I always pay off the balance during the month. I paid cash for my most recent vehicle purchase.
You should have borrowed when interest rates were at 1%.
@@marcoprolo7318 missing the point.
Goals 🙌🙌
Becoming a minimalist made a huge difference for me. I culled and gave away what I really didn't use/need and learned to really really really appreciate what I already own.
Absolutely. I also did that it has helped in so many ways. Best thing I ever did!
I was born a minimalist. Truly, I hate junk, I hate excessive.
It's such a freeing way to exist. Oddly, I'm an independent housekeeper of 20 years. Let me tell ya America's got junk and a lot of it.
The unessessary garbage people buy and hang onto boggles me
However it gave me a job and a means of support😊
I listen to DR and got out of debt and paid off my mortgage in 2022. I was 37 years old working in public safety.
What you said at the 2:30 mark is right on- you have to WANT to be debt free. You have to make it a priority every day. I made this decision back in 2020. I bought a car and my goal was to pay off by 12/31/21. I met that goal. We our currently working on our last debt, our mortgage which will be paid of May 2024. We are making 4 payments per month and we are able to do that because we have no other debt.
There is no feeling like going to work knowing if you got laid off, you are not a slave to car notes, mortgages, student loans and credit cards. You are at Unicorn status of life when you are without obligations -- to any form of loans out here.
To me, being debt free to those things i mentioned, allows to enjoy walking through life instead of running through it. You can enjoy pure time that is an obligation to yourself instead of someone else.
You know, your honesty about not achieving your goal and not giving up is so helpful. It is such a blessing to have the flexibility to adjust a goal date. Eventually you will achieve it.
I walked the steps by Dave Ramsey long before I knew him - somehow it seemed the most logical way of doing it. Debt extracts so much value, it’s unbelievable. I’m now at step seven and working to create a passive income stream from investments that will cover most of my fixed costs. Many people criticise and mock Ramsey as “outdated” however common sense is never outdated. It worked for millions of people so I don’t care about the critics.
This was just suggested to me by good ol' TH-cam, and I must say that I love how you calmly share the message...not yelling or judging people. Thank you
the best thing I ever did was follow a budget. It allowed me to see where all of my money was going and then the left over money after bills could be redirected towards savings, investments, debt etc. It took a good 3 to 4 months to have a solid foundation of a budget for me, but now about 10 years later I am rolling and things are running smoothly. You MUST know where every dollar you earn goes.
Thank you for this video. I follow Dave Ramsey and we are about to move from our large house to a smaller place. We want to be out of debt and our goal is to do it within 3 years and 10 months. The funny thing about making such a decision is I feel God has opened so many doors for us because we are willing to let go of what we do not deserve at this moment, which is this big beautiful house. I also want to start a TH-cam channel like you. I appreciate sharing your journey and helping others. Sending you blessings.
Cutting spending with maximum living style.
What a wonderful comment. Us to God opened doors for us to live comfortably but humbly and we're grateful every day. Sometimes hourly.❤️
Why don’t you deserve a nice house? If it is because it’s out of your budget, I get that. But, if it is you thinking you are not good enough, you need to think better of yourself!
This is an interesting comment...how people prioritize and justify their spending is revealing on many levels...and what you choose to deny yourself, especially if it is something you could afford, is an opaque window into your psyche.
Rob - Excellent video. As a boomer I remember what my father told me after I bought a Schwinn Sting Ray bicycle witth the banana seat with my paper route savings. He congratulated me and said that I earned it but remember one thing "nothing is a good deal if you cant afford it" (I bought on sale). His defination of affording something is still having savings in the bank and paying cash for what you buy. I never forgot that wisdom my father passed on. Retired at 60 with no debt. Unfortunately too much tempatation to buy too much "stuff". Like you also have one car and do just fine. Keep cars for 10-15 years and take good care of them is a fantastic way to control/get out of debt. Keep doing what you are doing - helping a lot of folks out there!!!😊
I just wrote your father's quote down on a piece of paper and put it on my fridge, to keep me balanced. This is a great advice. Thank you.
I'm still paying off my college debt 10 years later. From 30k to 3k.... now is the hardest since my bills are higher than ever before due to inflation and raised rent and less hours of pay.
Hang in there...soon you will pay It off....
Hang in there man, so close! But also if things are that bad you might need to find a cheaper place to live and also a job that gives you full time hours with adult pay. You know the cost of groceries and gas isn’t the real problem brotha 🖤 (even if it sucks)
Stay the course you're almost there.
I have 3,500 left to pay on 23,000 truck. I have that in savings fs but it's all I have so I gotta just keep plugging away at it.
We'll get there
You can do it!
We love Ramsey and his team! We followed the baby steps to get out of debt and build wealth. On average people who follow the baby steps can get out of debt and reach baby step millionaire in less than a decade.
I'm so glad you said increase your income. If that wasn't in this video i was going to blast off! You have to increase your income in all of this. You can't be lazy.
Avoid taking on student loan debt, either for yourself or for your children. So many of my peers, flush with pride that Junior got into a good college, are signing away their financial stability and retirement right now. The interest payments can be crushing. Look at some alternate routes to a college degree, such as doing two years at community college and transferring to a state university. Private schools with large endowments might actually give better financial aid than public schools, so comparison shop carefully, considering the value and not just the prestige of the degree. Also -- tough love here -- some 18-year-olds are not mature enough for college, and a year or two of CC or work before going off to school will help ensure you get value for your tuition, rather than squandering your retirement savings on keg parties and incompletes.
Also question whether a tuition-based Master's degree is a good investment, or just a source of oppressive debt.
Jennifer. If someone would have told me or explained to me the amount of students loans that I would have to pay back.................I WOULD NEVER EVER WOULD GONE TO COLLEGE.........................
I agree! I tell people this all the time.I don't understand how all these people think its ok to take on so much debt.It's so normalized.They push 4 year schools in high school and really don't give a lot of options to the students.This was how it was at my daughters school.
Banks/credit card companies prey on teens
Yeah, it's usually very shocking to me how much I hear people have in student loan...its just too sad that yound people are trained to start off their life with so much debt.
However, depending on how the Masters degree is planned, I beleive that in many cases, it's helpful-but has to be very well planned
financial aid depts at schools prey on kids to take out huge loans they dont understand. happened to me. it sucks. cant buy a house at that age but u can get a loan for the same amount for school. make that make sense 🤦🏼♀️
I became debt free last year and it's the best feeling ever. I avoided students loans and I think that's the best decision I've made in my life. Seems a large amount of people's debt comes from student loans. Now I'm working on saving for a house, that is if I decide to buy one. Still debating on whether it's worth it.
I also don't listen to Dave Ramsey much, but listening to him several years ago was the "kick in the pants" I needed.
Thankfully I was never in an unmanageable amount of debt. We were able to use the stimulus checks to pay off all debt (except mortgage). The feeling of being debt free is awesome
Until you get into debt again !! Ha once you pay it off you feel rich again ! And that’s the problem you get back into debt quickly enough
We're in a good spot. We haven't taken on any new debts and we are are close to 4 months in an emergency fund. I've also started funding a sinking fund for big purchases like cars.
@@sd0753 congrats bro, don't listen to negative people. You're in good spot, keep that positive you gonna go far.
@@sd0753 I need to pay 500 dollar debt
@@iamasmurf1122 control your self
I started following Dave Ramsey in 2014. I have paid off over $154k in student loan debt, have a hefty emergency fund and have money in a high yield savings account. I do still have debit but I feel so free with having an emergency fund in cash and money in savings. I would be totally out of debt but my husband still hasn’t gotten on board with saving and not spending.
Got mine paid off except the mortgage this year. About $85k in 3.5 years.
Totally worth it. Will start chipping at the mortgage here soon too.
Take home pay?
This was actually helpful I appreciate the specific steps . Most experts and I saw that loosely just want you to sign up with them and never give any info or how to’s
People have to SEE the problem before they can want to get out of debt. There is a shopping/spending addiction going on that has to be addressed. I have had $23k in debt ( with minimal overhead expenses) and I was in full denial.
I got counseling for it. I had to take a look at why I didn't want to be debt free..it was a black cloud over me. It was shame disguised as debt. It is also a punitive parent substitute. My parents could no longer nag and hassle me with their authority, but creditors and legal situations had the same punch. I just switched the appearance of my parents. I had to be under their thumb and had to stay in their good graces. Those days are almost over..
If you were truly broke you wouldn't have anything in your savings or checking account. If you've got 100k debt and low income it's seriously hard.
If you are sick and tired of being in debt and got to a place where you are really disciplined with your budgeting either because of necessity or practice you might want to look into velocity banking. It’s not for everyone but those who are ready to really hunker down it might be a good option
Paid off all consumer debt in 2014 but went all in on rental houses. Retired early years ago. Not all debt is bad.
God paid my debts!
I did this Dave Ramsey course back in the early 90's and got out of debt and stayed out for many years! Today, I'm back in debt due my business, which is a little different... but I want to get out of That, as well. I Hate debt, but they say without debt, we have no economy.
Rob, a few years ago I did just what you're talking about I was so sick of all the credit cards that's how they were draining. I did start with my biggest one that had 22% interest. And took the extra money that I had when I paid it off to pay off the next bill and it went so much faster than I had imagined. Now I'm taking that extra money and puting into a Roth ;)
Smart
I so appreciate your great tips but with a gentle manner, I think it’s important with the guilt attached to money issues. Feeling self compassion is vital for me to feel I can tackle it, otherwise I get stuck in a cycle of feeling bad about my spending, putting my head in the sand and making the same mistakes again.
I am thankful that I've never experienced this so far in my life. I am grateful to God that I didn't have student loans from BSc-MSc-PhD, as I received full scholarships at all three levels with additional funding and support from research grants and other opportunities. I've always been a saver, so that makes it easier. I feel for folks who are in debt and hope you all can turn it around. ❤
Your minimum payments are set. You can't not pay any. They simply all have to be paid at the set amount regardless of loan size, credit car or interest. I've never missed a payment!,
Thank you for this video, very clearly explained and step by step. Question: I have a credit card debt of $3,000 and I got a new credit card with a balance transfer 0% apr for $1,000. do you think is worthy to take it and pay this to my cc debt? thanks for your response.
I've always had a £500 car. I've never had a streaming service or purchased any nice things. Sold anything good on ebay. It's living hand to mouth waiting for a pay cheque that makes it hard. Interest racks up!
Hi Rob: Can you give advice for someone who doesn't have a mortgage but is trying to save for a down payment on a house? Should the Down payment be "considered" your first "bill" to be paid? Otherwise how do you get out of renting? (Owe Student loans and a car loan, no credit cards) Thanks
Having a house is a lot of expense. Payments are mortgage, insurance, home repairs, taxes, etc. If you'll own a home, find ways for the home to help you pay it like renting a room, renting basement, etc. If still renting, you can minimize cost while saving for a house by having roommates if it's possible or getting a cheaper apartment.
Hmm to me it depends. People talk about Insurace, taxes, repairs but there's nothing like owning your own home
If you're paying rent you're covering the owners taxes, insurance and mortgage.
I'm blessed I bought a fixer upper 19 years ago. It was cheap because it was a dump
Husband and me remodeled it over a 9 year period. It could have taken less time, but we did all the work and paid as we went
The mortgage Is down to 52,000 and our low interest rate affords us a... Ready? 359.00 a month payment and that's including taxes
4 bedroom, 2 full baths
You can't refinance rent
Good luck I hope you get a house
I am working on 4% monthly interest rate now. whenever it will finish, I will go with Ramsey rule but right now I must pay off this monster. whatever you say on credit cards, I consider it as a gateway of hell. I have already closed two. Still three to go. within this month one will go. next month another one and in December the last one.
Thank you for such a great video! You have a calming presence which really helps the anxious nerves as I'm going through tabs of spreadsheets, statements, and TH-cam videos about debt. This has been my favourite!
I only have around $1800 in debt, if these steps would save you they can sure help me.
We are debt free with a payed home, two cars and two kids and much more at 40, we have never had any kind of help.
Just don’t buy things you don’t really need, and live in a way where you can put away half or at least a third of your income. Don’t take credits unless it’s your home.
Rob has a lot of great advice here. I think the most important is the first step of understanding the details of your situation and track progress monthly.
You CAN get out of debt even on a low income. One strategy that has helped me is every time you get paid, take minimum 10% and move it to savings which will be used to pay down debts. You start to see how easy 10% is and then on many pay periods you will be able to do maybe 20%. When you get out of debt, continue to take that same 10-20+% and put in savings which is there for you in the future.
Debt free totally debt free feels great. A decade with nothing but taxes feel good. Sleep good
Unloaded the wife, and beater vehicle
Within 2 years I was debt free.
Nice! 😂😂😂
Right on!
This is the most realistic way/advice I've seen. And very doable. Thank you
Stop buying stuff to impress other people. Live within your means. Also Stay home - every time you leave your house - you’ll be spending money somewhere. Stop giving your adult children money for anything ! Their young - they need to go out & get a 2nd job - they have more years ahead of them to make money !!! This I see happening all the time ! In the end … start saying NO to yourself & everyone else ! Real good video tho !
In one of his books Robert Kiyosaki had a system for getting out of debt also. Similar to yours. He said start by finding $120 extra a month, use that to pay down your smallest debt first, then snowball (like your method) into other debts--every time you pay something off add that payment to the amount you are paying to the next debt. He said by this method in about 4 years you can pay off all your debts. He said some other things about it too, very interesting. I'm not even sure which book it was, I've read several of the Rich Dad series of books. Hope this helps someone God bless. His books are worth reading, don't remember which one it was though.
120 a month is 4 a day. i like that idea, could be cut out the daily coffee, or start a sideline and make a profit of 4 a day. or look at all expenses and try to cut the total by 120/month. a lot of food for thought there. thanks.
I have about 7k in debt right now.... This is easy to said than done for those with a low income..... I have money and can afford to have debt too many are suffering from destitution.....
Excellent presentation I totally agree with you , working on lowering the interest has really worked on me for a long time . Thank you for those excellent inputs.
If you can’t afford it now, what makes you think you can afford it later with interest?
This was by far, the most helpful video on this topic that I've watched. Thank you!
I'm working this plan. Thank you. Working more going forward. I'm blessed
Thank you! This is an extremely simple guide to follow.
I've noticed almost everyone that has a TH-cam video on how to be debt free has a high paying job. People that live on a low income feel like it's impossible or you have to get a second job. The debt snow ball method is the best way if you can be patient trust the process and give yourself credit for making such a great and sensible decision.
True..👍
well said
Can you talk more about how it feels to be debt free and the benefits? Or point me to a video that has that info? Thank you
This was so helpful Rob! It gave me hope haha. You explained everything perfectly and in a way that didn't sound overwhelming.Thanks for making this video!
I’m looking for resources of how to get out of significant debt at 65. I’m trying to determine if it makes sense to take my Social Security a little early and put that towards debt. Since I am self-employed, it shouldn’t impact my Social Security eligibility.
Thanks, Rob. My question is, in mid fifties, do we add a bit more to our mortgage payment (interest rate is 4% 5% ish and if we did nothing but pay the minimum we could pay it off in five years), or do we add that to our 401ks, which are over full match contribution but aren’t at maximum for the year - and we are behind in the size of our nest egg due to about fifteen lean years.
I got myself in debt because of stupid mistakes
It’s going to be greater feeling once you are out of debt no matter how you got into it you can get out of it with a good strategy.
Kelsey you’re not the only one- not by a long way.
We ALL make mistakes.
They do not define us as people however. You are not your mistakes.
You are so much more than that
Bigger, brighter, stronger, more beautiful, intelligent, loving, resourceful, creative, kind and compassionate.
As are all of us in Debt for whatever reason.
So hold your head high, smile, take lots of deep healing breaths and tackle the problem day by day, bit by bit.
Never give up
Much love
Rae xx
Thank you. I'm learning. New with these credit cards. By choices, but I need to bring these cards down to zero! No longer uses them and paying them off SLOWLY!!!
Thank you for your vulnerability & sharing. It was practical & left me better 🙋🏻♀️
I tried to do a zero balance transfer. No one wanted to play ball with me for more than a few thousand. My Fico score was in the low 700s. My credit union would not consider a loan because I had too much debt at $15k. I got it under $10k. I was able to turn revolving cc debt into a straight loan at 10% not 15%. The debt could only go down, not up with revolving debt.
Excellent presentation. Keep presenting these practical pearls of wisdom.
Thank so much for sharing this video, this was perfect timing because I just came across it. This very is very knowledgeable and very interesting of the breakdown to become debt free which I'm thriving for .
How do you feel about debt alvanche method?
Im taking all these steps but I have already defaulted in 1 credit card with 10 k in debt. I heard there is some government help for this. Any thoughts?
Excellent video! Thank you and congratulations!
Thank you for sharing. I didn't like you're wording, "we failed." You should have said that by that date, you had made great progress but it did take 2 more years to reach the goal and another few years to wipe out your mortgage.
I like this video and very thought out presentation. I will be out of debt very soon.:)
I enjoy your calm presentation.
Great video, the examples and personal experience shared made your steps so practical. Thank-you
Hi Rob, we have everything paid off including our residence. We have two rental mortgages with 3% interest rates. Do think its wise to pound to pay those off or take money and instead of investing, Ramsey would say to pay off but what is your perspective?maybe an video on this subject. Thank you for your thought and time.
As long as you’re not living off of the rental income and have healthy reserves to deal with vacancy/repairs I’d take the profits from the rental income and make additional payments on their mortgages. Almost like reinvesting a dividend.
I have a rental with a very low interest and payment and balance
The way I see it, if you sold hats for instance, you have a store front that you pay rental on to make a profit off the hats.
There's no difference in having a mortgage payment to make money off the house
Unless you're selling digital downloads for Income, every business will have sone cost to run it
Thanks for patiently taking us thru all the advise,... Very good!
Dear Rob - What camera do you use? I love your video and really like the lighting you have!
I'm drowning in debt, and I just don't know how to get out. I pay too much in rent and can't move because my credit is bad. I lost a job, and I owe taxes every year. I currently work two jobs and don't sleep, but I still can't make it. I really need help getting back on track.
hey man, i believe you can make it through, have faith
@Daniel Tene thank you. Our God is able, and He is a way maker.
Great advice Rob - really easy to follow tips and ideas that anyone can do. It will make a difference - may 2023 be the year everyone starts their debt free journey - I like how you termed that. Question should a person go into debt in order to make money - like renovating to rent out?
I did. It worked well for a while. I have an Airbnb.
Bookings dropped off a cliff last November. It was great for 7 years.
I'm waiting to see if it recovers in the spring
However, if it doesn't we can always sell ths house and still make a profit
I do not agree with stock market investing. The return comes to slow. With real estate you have the value asap.
Good luck
No rollin in the debt!!!!
Great advice. 👍👍
Good advice throughout....
I have only mortgage on our home. I have an emergency found and we have a retire fund, but I think this scenario isn't enough for me and my family, cost of living skyrocket and even if we are able to increase our income I felt I miss some investment for the future.
One question why you want to pay your mortgage? My % pay on my house is so low can I have more with interest on the most secure investment.
Thanks
You have to use your credit cards, even if it's only $10 every few months or you will lose them.
Somewhat I did that, great advice, it works: sold my motorcycle, moved out to a smaller place so lower bills (it takes less to heat and cool our house now), the new place is out of a gated community so no more mantainance fee, changed one of the cars to a hybrid so less gas (looking forward to do the same with my wife's car), cheaper vacations, installed solar panels so no more gas bill and little to none electricity bill, cooked more, no more monday through thursday dine outs, no more gym membership but bought a cardio machine and dumbells and walked more my dog :) (I already recover the investment vs gym), I took a nigth school job as a teacher (pays for the monthly gas of a hybrid car, and 2 weeks grocery)... no more debt and we live a confortable life.
Thank you for sharing. Still on step 2. Geeze. I'm still afloat. My only car for work died (I'm required to drive). Garage & plant sale this spring will pay that replacement off.
I'm stuck in that and I can't pay anymore. First time my credit card payments will be missed. 20k and no work currently. Where to live April 1st.
If you have more than $5000 in debt all spending and trips needs to come to zero, no movies , no dinners , no buying stuff on Amazon , nothing
Other things you can do it cut out unnecessary entertainment and leisure expenses. For example going out to socialize, concerts, movies and dinners. Do them on a budget or only if it is necessary. You be amazed how much you will save just by not going out to socialize on a daily or weekly basis. Just saving 20 on tips from eating out 4 to 6 times a month which is 80 to 120 just in tipping makes a difference.
“What if” getting out of debt is the wrong objective? In an inflationary environment, future debt payments are made with less valuable dollars. Instead, “what if” the focus should be on (1) restructuring debt with collateralized lending and (2) acquiring cashflowing assets that will self-amortize the debt. Hedge retained and principal amortization put on automatic
Agree. Inflation is 9%. Must factor that in. I prefer OPM, unsecured.
Yes it does. My wife and I are not on the same page. She still spends and I am selling all of my toys and books and clothes on ebay / garage sales. Not eathing out. No tv service. No coble. Disney+ only 1 to 2 times a year. The worst is eating out and Amazon shopping for toys! Agh. Now with kids they need 15,000 for college this year alone! I used to have 2 jobs but my wife only works part time. (1 job). she just bought a newer car!
We never, ever eat out. Not because of the expense but it taste terrible compared to home cooked food so we cook daily
The icing on the cake is it saves a ton of money
We do get a coffee and pop a few times a week at McDonald's and were always so floored at how many people are in the drive through. We look at ths screen to see what they spend. 25,39,15 oh my!
Who can afford that
Make yourself the ONLY name to use your CC...
😮
Thank you so much for this practical advice. Brilliant!!
I'm not American so I'm just here to learn, rather than put into practice the steps into practice. I was interested in everything and found some contrasts. The first thing is, I've heard of a 'deductible 'but I'm not sure what that is. Another thing is having 'medical debt', which is something people in other English-speaking countries don't need to worry about so much. That goes into the need for a 6-month emergency fund. Perhaps there isn't quite the need for that due to the lack of need for personal medical insurance (everyone is insured by the state). One more thing is the student loan debt: again though there are 'student loans', it doesn't get that bad in the UK for example. In parting, I would like my US cousins to think on the fact that Walter White wouldn't have needed to do what he did if there had been a more equitable society (in terms of medical expenses). On the other hand, having the state take on this and other responsibilities might make you lazy. Saying that, if your goal is getting debt free, most Europeans, for example, don't get into debt in the first place - but they do pay higher taxes. There you have it.
I listen to dave ramsey and think he does a great job. I like you too. thanks
Can you please tell me the name of the online debt consolidation chart you spoke about.
Stop thinking you cant do it because you can! Ive met an Uber driver who was able to pay off all of his debts and it was in the 100 of thousands. Stop worrying about how long it'll take when people soend years in college racking up those student loan debts. Be strategic and before you know it it'll be paid off!
Thank you for your kind and sensible advice!
You can also use 0% balance transfers to your advantage to get things paid off quick
Thank You!
Thank you for making this!
amazing Calculator. Tnks so much!!!
I made a consumer proposal and I almost finish to pay my debt I feel better
Hi I use the avalanche agghh not sure whether to go snowball as yes don’t see anything as it takes u soo long. Does save interest but confusing! My debt is going down lol thanks
Is mortgage a debt too when you have only 5 yrs to retire ?
Excellent advice very good steps.