Dave Ramsey is one of the first names that popped up when you started searching the web for advice for your debt relief.
What makes his program any different from the many others? Is he just another financially smart guy taking advantage of those less savvy? I'm not on Dave's preferred financial counselor list, but I have recognized the benefits of his program over others.
Here are some contrasts.
Get Rich Quick vs.
Work Your Tail Off Dave's not going to sucker you into a money making scheme that's "sure to win.
" He's going to tell you to cut your expenses and increase your income.
Best part is, he'll tell you how! Warning - it ain't easy.
Transfer Your Debt to Lower Interest Rates vs.
Pay Off Lowest Balances Sure, the math makes sense.
Pay off the ones that charge the most interest first, right? Dave's going to tell you to line up your debts smallest to largest and knock out the smallest first.
He explains why - makes sense.
Pay Off Debt ASAP vs.
Build an Emergency Fund I've never heard a financial counselor say you need to pay minimum balances.
That's what you're going to hear.
You'll find that you'll be able to build a fund to cover your emergencies that come up.
Alternator.
Root canal.
Accidents.
You'll have peace of mind - wouldn't that be nice.
Hope.
That's probably the biggest difference.
Believe it or not most people see a major turn around within two years.
What happens if you follow Dave's lead? You'll take the bull by the horns, and you'll start to see your financial mess turn around.
You'll experience some short term costs, but you'll avoid lifelong financial stress.
You'll even avoid foreclosure on your house - a very scary thing today.