How to Get Out of Debt with Dave Ramsey

Dave Ramsey is a popular author and radio show host who gives practical advice on getting out of debt. He has his own system of "baby steps" for getting out of debt and . Read on to learn more about the portion of Dave Ramsey's system that deals with getting out of debt.

Difficulty: Moderately Easy

Instructions

1. Take stock of where you are.
   
   The first part of Dave Ramsey's system involves gathering information about all of your debts and taking stock of where you are.

2. Place debts in order.
   
   Ramsey recommends placing debts in order from smallest to largest and approaching the payoff that way.

3. Begin attacking.
   
   Start by "attacking" the first debt and throwing everything you can at it.

4. Create a debt snowball.
   
   Once the first debt is paid off, take the payment amount from it and add it to the payment amount of the next debt. Then begin attacking that debt. This technique is called a "debt snowball."

5. Continue until complete.
   
   Continue the debt snowball until all non-mortgage debts have been paid off. Then you're ready to move on with the rest of Dave Ramsey's plan.

Tips & Warnings

• Dave Ramsey has a complete system for getting your financial house in order called "The Total Money Makeover". You can read about it in his book by the same name.
• You can listen to Dave Ramsey on radio stations across the country. Visit DaveRamsey.com to find a station in your area.

Resources

• Dave Ramsey's The Total Money Makeover
• The Total Money Makeover Workbook
• The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family's Financial Health
• More Than Enough: The 10 Keys to Changing Your Financial Destiny

[PearlsWisdom]

on 9/13/2009 Gotta love Dave Ramsey. Good tips.

[missbeth]

on 5/8/2009 Great article with lots of info about getting out of debt the Dave Ramsey way! Thanks for sharing here. 5*s

[ScarlettOHairy]

on 2/16/2009 Good info on reducing debt. 5*

[TandLMommy28]

on 1/7/2009 I love Dave Ramsey almost as much as I love my husband. He's a real American hero! We are definitely living like no one else!

[tylamac]

on 1/3/2009 Dave is the man for anyone who truly wants to change their financial life. If more people followed his advice we wouldn't have so much panic every time the economy is in a downturn.