Debt Free: Is It Only A Dream?

Is it possible to be out of debt? The answer is yes. I want to introduce you to a good book by Dave Ramsey called "The Total Money Makeover." It describes in seven plain and simple steps how to get out of debt and stay out. It's not a scheme or a quick fix. Depending on how far in debt you are depends on how long it will take to get out of debt. The idea is to take one baby step at a time. The very first thing you must do is set up a written budget each month. This is truly a must. All your income must be budgeted so you don't over spend. And, QUIT BORROWING! Your days of going in debt are over....... Now, here are the baby steps:

1. Save $1000 Cash as a Starter Emergency Fund

2. Start the Debt Snowball by paying off one debt at a time starting with the smallest and paying the minimum on the other debts.

3. Finish the emergency fund. Save enough in case your income stops for 6 months.

4. Invest 15% of Your Income in Retirement

5. Save for college (if you have kids at home). If not, skip this step.

6. Pay Off your Home Mortgage

7. Build Wealth

Now these are very simple directions. You need to read all the detail for each step plus debt myths in detail. Read the book and if you really want to get out of debt, get to work.

Hope this helps. Also check out Dave Ramsey's website: www.daveramsey.com.

Have a blessed day,

Pastor Gary