You can wander into debt, but you can't wander out.
With all those payments going out each month, there's nothing left for you. To get out of debt, you've got to change your habits. Create margin. Earn extra income. Live on rice and beans.
You can be debt-free. We'll show you how.
76% Of Americans Live Paycheck To Paycheck
The average student loan balance is $29,400
90% Of Americans Buy Things They Can't Afford
See What Dave Has To Say About…
Americans owe $783 billion on their cars. 84% of people who bought a car in the last quarter of 2013 borrowed the money. Scary! With the average loan being $26,000, a car payment is a great way to ensure you stay broke! Car loans will rob from your future. Save up and pay cash. Don't miss Dave's rant!
Josh asks if using a credit card is okay if he pays it off each month. Dave's answer? You spend more with plastic than you do with cash. In fact, those who use cash spend an average of 22% less. 22%! Give debit some credit too. Debit cards protect you from overspending and chasing cash-back rewards.
You won't accidentally get out of debt and start winning with money. It takes intentionality and discipline. Debt is a behavior problem. The debt snowball is the behavior-based solution. Start by attacking your smallest debt first. Turn off the TV and get crazy! Fix your life starting today.
How the Debt Snowball Works
Get the ball rolling and attack your debt!
List your debts in order from smallest "total payoff" balance to the largest.
Don't worry about the interest rate, unless two of the debts have a similar payoff balance. In that case, pay off the one with the highest interest rate first.
Attack debt by paying as much as you can on your smallest payoff balance. You need quick wins.
Only make minimum payments on all the other debts and put everything you can into the first debt. When you knock one out, cross it off. This will show you how close you are to becoming debt-free and keep you fired up!
Once you've paid something off, move that entire payment to the next item on the list.
As the payments roll over, watch how fast your payoffs grow. You can be out of debt sooner than you think.
Six Ways to Get Intense!
Stop Borrowing More Money
You won't get out of debt if you keep swiping your credit card or taking out loans! Stop digging the hole first. Then start digging your way out.
Sell Some Stuff
Get serious about paying off debt! Sell everything you can. Hold garage sales. Post stuff on Craigslist and eBay.
Get a Part-Time Job
Even working a few extra hours at night or on weekends will help you save up enough to throw some weight behind your snowball.
Watch Our Videos
Watch "debt-free scream" videos from The Dave Ramsey Show to get inspired and stay disciplined.
Work Some Overtime
Your employer may offer the opportunity to make extra cash. Work a few extra hours each night and you'll be surprised how quickly your debts get worked off!
Plan regular check-ins with your spouse or a trusted friend to help keep you on track with getting rid of debt.
Use These Tools to Dump Debt
Financial Peace University
Take control of your money! The average family pays off $5,300 in debt and saves $2,700 in the
first 90 days!
The Total Money Makeover
Learn the seven easy-to-follow steps that lead you out of debt and into a new future!