Dave ramsey and consolidating debt
Plus, once you’ve written it all out, and it’s right there in black and white, it may not seem as insurmountable as it did before.As you begin to work this system, keep in mind that it’s not easy.Just like losing weight, losing your debt takes work, but if you genuinely want to slough of that stressful debt, your perseverance can make it happen.And don’t fret if you need to make adjustments along the way.As you work on your plan, you’ll need to make all necessary adjustments to your budget along the way so you don’t overspend and slide back into debt.
There are some reputable debt settlement companies that don’t charge up front fees and have A ratings with the Better Business Bureau (BBB). If Dave was sitting in a room with me this is what I would tell him. When I was spending money like Peggy Bundy in a flea market I had to consolidate to get out from under the high interest rates I was paying. When I declared personal bankruptcy it forced me take a full inventory of my life. I spent money on equipment, traveling, recording, hiring other musicians, pressing CDs, etc.
MMI would require me to make ONE monthly payment to them along with a small fee (total payment of about 2). A Debt Management Program is just that, the company will manage your debt for you by taking your monthly payments and negotiating settlement deals with your creditors. But in researching these programs, I discovered that they didn’t always follow through with their promise to work out a deal with your creditors and often times their clients find themselves having paid thousands of dollars to the DMP only to have one of their creditors file a law suit. After a few days of listening to Dave Ramsey, something he said really struck me strongly. He lays out his plan in 7 steps he calls the baby steps (Dave Ramsey’s Baby Steps). They advised me to allow them to manage MY money for me. My behavior was the problem and my behaviors will be the solution.
They told me that I would no longer have to deal with each creditor individually, but simply make the monthly payment to MMI and they would work things out with my creditors. This is how they are able to help you pay off your debt in what seems like a really small amount of time (in my case 4 years). Something that none of the other people I had consulted had told me. He teaches people personal accountability with their personal finance, he teaches, “personal finance is 80% behavior and only 20% head knowledge.” Finally, a plan that made sense. Turns out Dave’s financial advice, much of which comes from The Bible, is very similar to the financial counsel given by the LDS Church.
In other words, if my underlying problem with personal debt is my overspending, under earning, impulse buying, and lifestyle choices I still need to consolidate all debts into one and get a lower interest rate on the term. Dave’s post entitled The Truth About Debt Consolidation goes on to claim that debt consolidation “is nothing more than a con” because it dupes debtors into thinking they have a to get their financial affairs in order when they’ve actually just moved their debt from on creditor to another. It truly is a second chance if you take action to change your lifestyle, spending habits, and earnings.
What I decide to do after that is critical – I can make it a whole lot worse or a whole lot better. At the end of his short post he writes, “…get out of debt by changing your habits”. This doesn’t mean there is something wrong with the financial service – some people choose to continue their irresponsible spending.
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