Getting Out of Debt

We just recently heard a program called The Dave Ramsey Show. He answers a lot of questions about what to do to get out of debt. He has written a book, actually, that has helped many people get out of debt and live a better life.

We just recently got this book and have started working on the baby steps that are mentioned in it to help us pay our debt.

It's called the Total Money Makeover. You can find this through amazon.com, or if you sign up on his website, daveramsey.com and subscribe, you get the book mailed to you for free!

7/24/2014 Update:

It has been two years since we started using The Total Money Makeover, and let me just say... it has been a whirlwind of heartache and excitement all at once! We have gone through a move and having three more children, to get to where we are at now.

We have made many material sacrifices (going from a smartphone to a your most basic phone, to qwerty keyboard upgrade...no cable TV). I do have to say by making these sacrifices, our bill has been cut down in half! I do miss my smartphone, but I keep telling myself "Live like no one else so we can live like no one else." It is one of Dave Ramsey's mottos and it has helped out immensely to keep our heads and our hearts on track to becoming debt free.

We have paid off a lot just within this last year. We do not have any car payments or a mortgage (we are military so we move around a lot....), and zero credit cards. We just recently paid off my husbands's student loans so now he "owns" his brain. I have two more student loans left, but those should be paid off by November if we keep within the means of our budget!

My advice to anyone looking to pay off debt or are wanting to do the Total Money Makeover is this... stick with your budget! Once you get a budget down, it will make things a lot smoother and you can see where your money is going. Without a budget in place, you will see yourself get into more debt because you go straight for your credit card when you find something you really want to buy.

Which brings me to my next advice....when you want to buy something, save up your money! It will be a long wait to do this, but you will feel exhilarated knowing that you have the means to buy it instead of "putting it on the card." We have done this a few times since we have started our journey to becoming debt free. Now there are other circumstances that you cannot see coming (car accidents, hospital bills from surgeries, ect.) that can prevent you from saving up your money, but that is where your emergency fund comes in. I know starting out, your first step is to get a baby emergency fund ($1,00), then work on having a bigger emergency fund (at least 6 months worth of your income) after paying off your debt, but you do have insurance that can help you out with some of those expensive bills. For example, if you happen to get in a car accident and you get money from your insurance, use that money as if it was your budget. Look for a car within the means of the amount you receive instead of finding that one vehicle with all the gadgets and whistles.

I wish you luck on your journey to become debt free!