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But he wasnt always that way.
Ramseys personal struggles with debt have shaped the financial advice he now shares with millions of people.
Here are some of this main focal points.
But avoiding the problem only makes it worse.
Ramsey recommends breaking your debts into manageable chunks using the snowball method.
Heres how it works: Start by listing all your debts, ranked from smallest to largest.
(Breathe into a paper bag if you must, but this is a necessary step.)
From there, commit to making minimum payments on all debts except the smallest one.
Throw every extra dollar you’re able to spare at that smaller debt until its paid off.
Once the smallest debt is gone, pat yourself on the back but not for too long.
Use the money you were putting toward that debt to attack the next smallest debt, and so on.
The more debts you knock out, the more motivated youll be to keep going until youre debt-free.
For Ramsey, the bill collectors snarky comment became his driving force.
For you, applying the snowball method could ignite your own fire to tackle debt.
Consolidating your debts doesnt eliminate them; it just prolongs the time it takes to pay them off.
This is where budgeting is essential.
Start by prioritizing necessities like rent or mortgage payments, utilities, and groceries.
These are your non-negotiables the A-team of your financial life.
As Ramseys blog wisely notes: We know saying no to yourself is hard.
But getting out of debt takes some sacrifice theres no way around it.
Even financial experts like Dave Ramsey arent immune to harsh words from bill collectors.
But Ramsey turned that experience into a lesson and a mission to help others break free from debt.
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