Dianne-TX Posted June 17, 2009 Share Posted June 17, 2009 had to do the "draw the line" method? Above the line gets paid, below the line doesn't get paid. Has anyone had to forego paying some CC's? How did you go about it? Did you get harassed? We have his book, but have never "jumped in" to do this fully. Please PM me if you don't want to share with everyone. Thanks... Quote Link to comment Share on other sites More sharing options...
CactusPair Posted June 17, 2009 Share Posted June 17, 2009 bump curious about this topic:lurk5: Quote Link to comment Share on other sites More sharing options...
Joanne Posted June 17, 2009 Share Posted June 17, 2009 Has anyone followed Dave Ramsey's plan and... -------------------------------------------------------------------------------- had to do the "draw the line" method? Above the line gets paid, below the line doesn't get paid. Has anyone had to forego paying some CC's? How did you go about it? Did you get harassed? We have his book, but have never "jumped in" to do this fully. Please PM me if you don't want to share with everyone. Thanks... Well, yes. Here is the basic plan: Pre Baby Step: Get current on everything such as utilities, rent/mortgage, etc. 1) Save $1k for emergencies. Pay shelter, food, utilities and what you *can*. 2) Begin debt snowball after $1K is saved. This means paying the minimums on all cc's/other debts while you pile as much as you can into the smallest debt until it's paid. When that is paid, at that payment to the minimum on the next card/debt until it's paid. Other steps follow, but this is where the "line" you are talking about comes in. If you run out of money, you can't pay. Yes, they'll call. Yes, they'll "harass". Yes, they'll threaten lawsuits (relatively rare that they happen). Still, you can politely say "I am not able and HANG UP or ignore the calls. You can't pay what you can't pay. It's a nightmare but it's not *less* of a nightmare not following the plan. Quote Link to comment Share on other sites More sharing options...
.... Posted June 17, 2009 Share Posted June 17, 2009 Hi. I don't post much, but I really want to help you. I have been on the Dave Ramsey plan through the TMMO subscription on his website (you pay like 11 bucks a month or something) for almost 2 years (not quite). During that time, my family eerily thought I had joined a cult or something. I started Baby Step 1, finished within 2 months or so and then started Baby Step 2. I paid off 2 credit cards, paid off my van and bought a $2,000 beater truck and was starting the 3rd credit card when husband lost his job. :confused: I am not kidding you...we were unemployed for 7 months before he could find another job and we did not lose our house. Of all the people we know who lost their jobs, we were the only ones who kept our heads above water and it was due to the stuff I learned from dave ramsey's TMMO subscription (I think you can take the Financial Peace University class and it has the same stuff in it - but I'm not sure how expensive it is). We paused Baby Step 2 during our unemployment (Dave Ramsey says to do this) and I've started some "snowflakes" onto the 3rd credit card, but I'm moving soon, so...trying to hang on to some money right now. As soon as we move, I should start Baby Step 2 and be finished within a year. Then, you're supposed to do BS3, where you save 3-6 months of living expenses in a money market account. Anyway...you can go on his website and see the list of steps and what you're supposed to do in each one. Also, for the first time in my entire adult life, I have NOOOOO car payments. I can't tell you how much money that frees up (like 800 bucks a month). It doesn't sound like a lot of money, but it goes a long way. :auto: OK, enough rambling, sorry... So, I would ABSOLUTELY recommend the dave ramsey program to ANYBODY who really wanted to get out of debt. It's really hard to cross that line when you first start (he recommends doing some really drastic stuff like getting rid of your cars and buying beaters - which is what I did at a huge loss), but when it's over with, we can call in on Debt-Free Friday and scream, "I'm debt-free!!" :) So, the book is ok, but the website is much better. Also, check out the Financial Peace University - I don't know anyone who has done it yet, though. As far as your credit cards, if you can pay 5 bucks on each one, at least you have made a payment. If you go into his website subscription service, DR has a "Ask Dave" section and he talks about what to do if you are harrassed by credit card companies. There are even pdf files of letters you can mail to them. Also, there is a really active forum where you can post all kinds of questions and there are a bunch of DR veterans on there. Good luck and I've been there!! :grouphug: Quote Link to comment Share on other sites More sharing options...
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