Pay It Down...
I will be debt free
- Posted:
3/17/2009
There are so many books geared on getting us out of debt these days, and so many with different opinions. Some writers agree on how to get out of debt while others disagree. We can't please everyone so we have to do what works for us, and what works for us might not work for someone else.
Dave Ramsey wrote
Money Makeover and he suggests that you tackle your smaller debt first. Once you see that you have one debt paid off you can work towards the next one. He also believes that you shouldn't worry about the interest rate, but should concentrate more on the "debt snowball."
Yesterday, I came across this book
Pay It Down From Debt to Wealth on $10.00 a Day by Jean Chatzky. Jean's views of course are different from Mr. Ramsey's. I did not have enough time to read the entire book, but it does look like an interesting read. Chatzky believes that any money that you are saving should be thrown at debt, as does Mr. Ramsey. The biggest difference is that Chatzky believes the highest interest rate debts should be paid off first, because they are creating the most debt. I think I agree with this philosophy as well. Chatzky also believes you will save $10.00 a day by not purchasing that cup of coffee, buying those happy meals for your kids at McD's, or going to the movies every week.
Another theory that Chatzky points out in the book is being able to assess why you got into debt in the first place, and it could be any number of things: losing a job, going to the hospital, going through a divorce. Once you know the reason why you are in debt, you can work on fixing it.
Chatzky discusses other factors in the book as well, knowing and managing your credit score, tracking your spending as well as learning how to make the harder choices: selling assets (if you have them) and earning more money. If you have the time, I would definitely suggest checking out this book. It looks like it might be a valuable tool in controlling your debt.
Comments
