Five Cent Nickel has written two posts about Dave Ramsey, and Ramsey’s Debt Snowball. The first post, Nickel’s most popular post, was written a year ago and is entitled: Dave Ramsey is Bad At Math. Wow. That particular post stirred up quite the reaction. Over 90 comments later, Nickel decided to write another post, which comes at the same subject from a different angle: Dave Ramsey is Good At Psychology. (I used Dave’s snowball method to get out of debt, and I’m a big proponent of his “Baby Steps”. Nickel was kind enough to ask me for a quote. Check out Nickel’s article and you can read my quote and the other comments.)
The REAL issue that Nickel should have addressed? Which blog is cooler, an awesome bright green blog or a boring dark green blog?
In all seriousness, when you get ready to pay your debts, I feel that you need the emotional boost that paying off those smaller balances provides. I know that when I was getting out of debt, I LOVED knocking off those smaller debts.
NCN,
From time to time I have minor issues with Dave’s advice, but you can’t argue that the man is on to something big.
On the matter of the debt snowball he is dead on. People deeply in debt need a place to start and trying to overcome $20K crerdit card debt is not the place to start. The $350 one is.
Merle.
Dave Ramsey is bad at math, but his baby steps are an easy to understand and easy to follow plan. Someone who follows his plan will likely pay more in interest, but they will pay a lot less in interest by paying of their debts.
Your awesome bright green site is clearly better. You rock. 🙂
NCN I agree. Although I did it in reverse, you need definable goals and to see success. if you try to tackle an entire mountain at once, you are sure to fail. if you break up the climb up, it is much easier to manage. it may take you longer, but you are more likely to succeed. the reason why people get into debt is because of compulsive spending, so being impatient in getting out of debt, will more than likely cause you to be in farther debt. the first time i paid off debt, i wanted to do it quickly and get it over with; however, i went quickly back into debt, because i didn’t establish foundation for post-debt.
it’s all fine and good to focus on getting out of debt, but you must plan for post-debt. perhaps one of you pf bloggers can write some good things about post-debt planning. Something like, ok so you paid your last 50% credit card, now what?, article.