July 17th, 2008 at 03:11 am
I have read Dave Ramsey's book and really enjoyed it. I've also listened to his show and got some wonderful advice and ideas.
I just stumbled across this new method called the Debt Avalanche
Text is http://www.consumerismcommentary.com/2007/08/01/paying-off-debt-6-steps-to-building-a-better-snowball/ and Link is
http://www.consumerismcommentary.com/2007/08/01/paying-off-d.... It's basically the same but puts paying off debt before creating an emergency fund. I dont see why they can't be done at the same time. I mean I understand the point of having an emergency fund because stuff happens. But you can tuck money aside while paying off debt. Now I wonder...which one would really eliminate my debt quickest??
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3 Comments »
July 17th, 2008 at 03:25 am 1216261545
If you have no emergency fund because you have concentrated so single-mindedly on eliminating credit card debt and an emergency comes along, what do you have to do?
C H A R G E !!!
@@ You have just defeated the whole purpose.
July 17th, 2008 at 03:55 am 1216263303
Personally I think you should concentrate on one or the other. Most people are not making enough to concentrate on both. If you had an extra 2k or 3k a month you could probably do both. That why he also says to stop retirement savings.
He wants you to get out of debt as quickly as possible and then steps 4,5, and 6 are all done at once. So 1,2, and 3 should take less then 2 years.
July 17th, 2008 at 05:29 am 1216268941