On June 28th, we had our 4th class of FPU and it was all about DEBT. I think this is the part that drives people to look into Dave, they hear bits and pieces about his program and getting out of debt, but when they hear him talk about never BORROWING money again they are quickly turned off. For Felicia and me, we liked that part. This lesson is about how to get out of debt, taking an honest look at what it cost to finance things you could save up for, and what you could do if you had no debt.
How to get out of debt? Listening to Dave on the radio, I know that when I hear a new caller talks to Dave the first things he will tell them is to get on written cash plan, stop borrowing money, start saving money, and work the debt snowball. I know what you are thinking, "you need to listen to a radio show to know that." Well, sometimes you do. Sometimes you need a stranger to knock some sense into you! If it was that easy to do, we already be doing it. It would not take an economic meltdown for the national savings rate to finally increase. I guess it doesn't matter how got here, but that we are her. Now, we are on a written cash plan, and saving money. We are almost done with Step One and will be moving to Baby Step 2 in August.
Our homework for this week is to put the Debt Snowball together and figure how long it will take for us to be debt free.
When are you considering if you should follow Dave's plan or not, ask yourself this: How much can I SAVE, INVEST, BLOW, and GIVE if I had NO payments?