Is Debt A "Tool?"

Dave Ramsey Writes...

Myth: Debt is a tool and should be used to help create prosperity.
Truth: Debt is not a tool; it is a method to make banks wealthy, not you.

Debt is dumb.

Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt then you're a slave, in the sense that you do not have the freedom to use your money to help change your family tree.

According to a recent USA Today article about debt, 78 percent of baby boomers have mortgage debt, 59 percent have credit card debt, 56 percent have car payments.

It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done.

Imagine how much you could put toward retirement if you just didn't have a stinking car payment? This is how the wealthy build their wealth.

Debt is really dumb. Welcome to the real world! Start your Total Money Makeover Now.

Visit DaveRamsey.com for more information and the tools to get out of debt.

The Truth About Debt Reduction

What a powerful change in our lives since, as a family we adopted the principles taught by Dave Ramsey that in turn are based on the statement from the Bible that the "borrower is slave to the lender". (Proverbs 22:7 - The rich ruleth over the poor, and the borrower is servant to the lender.)

Below is an article dealing with the "myth" of believing that only the rich can be debt free.

By Dave Ramsey

Myth: Only the rich can be debt free.
Truth: Anyone can become debt free. True debt reduction is plain common sense and hard work.

Many hard-working people get into debt because of mistakes. I work with those people every day. I'm talking about them - those who are willing to keep working hard - when I promise that there's hope to get out of debt and have a financially peaceful future.

Beware of Quick Fixes

But then there are lazy people who look for a quick fix, such as debt consolidation or debt management. Real debt help is not quick or easy. Laziness is a character flaw. You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped.

Are you willing to get another job and work a few 80-hour weeks? If you are in financial stress because of something you've done, you need to get yourself out of the mess by working. If you think that it is too hard, you will never get out of the debt that you brought upon yourself.

Laziness is a sickness, and it will get you absolutely nowhere in life. We all make mistakes, but the question is whether you are willing to take responsibility for your mistakes! You need to learn from your mistakes or you - and your children - will be doomed to repeat the cycle. How badly do you want to be out of debt?

How to Get Out of Debt

We've developed a little process called the Debt Snowball to do one thing at a time and keep the debt reduction process simple. I have been broke. I know how scared I felt, and I know how fast I wanted to get out of debt. I know how you feel, and I have learned that what really works is unbelievably fierce, focused intensity.

Visit DaveRamsey.com for more information and the tools to get out of debt.

The Truth About Budgeting

Since going on the plan by Dave Ramsey and developing a Budget every month, our family has experienced greater freedom, and as Dave says, it feels like we received a raise.

Too many families find themselves in great financial trouble because they don't take the time to develop a Budget. I used to think that a budget had to be "perfect", as well as laid out for the entire year, but have since come to realize that the farthest ahead we can predict with any sense of accuracy is 1 month. Even then, it may not be exact, yet the discipline of doing a budget is one of the greatest things we have done for our family.

Dave Ramsey writes:
"The dreaded "B" word. Budget. The only other word that starts with "B" that might generate a worse reaction in most people is the word bankruptcy. Unfortunately, the word budget has gotten a bum rap. It is basically just a plan. When you budget, you're spending on paper, on purpose, before the month begins. But many people view a budget as a straight jacket that keeps them constrained. Freedom and budget just don't seem to go together.

However, when you see that a budget is just spending your money with intention, you'll actually experience more freedom than before. Many people say they found even more money when they created a realistic budget and stuck with it."

The Bible tells us: Proverbs 22:7 The rich ruleth over the poor, and the borrower is servant to the lender.

If you find yourself "hopelessly" in debt, rest assured there is an answer for you. It is not a "magic pill" and it won't happen overnight, but for most people who go on the plan are debt free within 2-3 years, except for their house. This is not a guarantee of course, because there is no way to predict how intense people will be, but this has helped our family in great ways, and I encourage you to take a look for yourself and see the benefits of this great plan!

Get Out of Debt

We live in a nation where being in debt is "normal", and almostexpected of families right from the moment of marriage throughtheir entire lives.

A few months ago, we came upon the tremendous resources offeredby Christian Financial Expert, Dave Ramsey. Until this point, Ihad only heard of his name, but had not taken time to actuallyreview the resources he offered, but decided to take a look ingreater detail.

After further examination, all I can say is "WOW"! Why didn't Ifind him earlier? In just 10 short months, we have paid off about$16,000.00 in debt, and are well on our way with a tremendous plan for Debt Freedom. Dave often says, "this plan will work if youdo." In other words, it is not by any means a "get rich quick"scheme, but is simply a powerful resource to enable people tobecome better stewards of the finances God has blessed them withas they practice budgeting, restraint, and the "debt snowball".

I have recommended many great resources in this ezine, but nothing with so much potential to change America's families forthe good as this.

As Dave often says; "America, it's time to act your wage"!

Check it out here...