November 30, 200718 yr Don't be confused. DR is eating out. He's not against eating out. He's just against it if you can't afford it. I don't think he has any worries as far as finances go. Much easier to live by his advice if you are in his position.
November 30, 200718 yr I owe my in-laws $1,000 at no interest. I owe $3,000 on a 0% interest loan on my car. I owe $5,000 on a 4% student loan. I ower $12,000 on my 18% credit card. I can afford to put $100 per month to one of those 3. Tell me how his numbers work out. I don't see it. It defies logic. Like I said, with reasonable income. Odds are you have more than $100 dollars a month to put to those three. I've heard him tell many many people, vut out cable TV, eat rice and beans, bag groceries, deliver pizzas, you can't expect it to be easy.
November 30, 200718 yr I owe my in-laws $1,000 at no interest. I owe $3,000 on a 0% interest loan on my car. I owe $5,000 on a 4% student loan. I ower $12,000 on my 18% credit card. I can afford to put $100 per month to one of those 3. Tell me how his numbers work out. I don't see it. It defies logic. Two ways: 1) get a 2nd job to aggressively attack the debt for more than $100 a month. 2) rework that budget and found other sources to cut to pay more than $100 a month.
November 30, 200718 yr Author I owe my in-laws $1,000 at no interest. I owe $3,000 on a 0% interest loan on my car. I owe $5,000 on a 4% student loan. I ower $12,000 on my 18% credit card. I can afford to put $100 per month to one of those 3. Tell me how his numbers work out. I don't see it. It defies logic. Pay the minimum amount on the 3,000, 5,000, 12,000 and do everything humanly possible to pay off the 1,000. Your example is a bad one unless you have a set amount to pay the in-laws each month. Once the 1,000 is paid, you attack the 3,000 payment + the amount you normally used to pay on the 1,000. In other words, you don't just pay the minimum, you devote all extra money to paying the debt. If you do this, you'll have it paid in no time and the interest isn't really a great factor. If its going to take you 10 years to pay this off, then yes, you should probably reconsider. This is all assuming that you suck it up and clear your debt in 2 years.
November 30, 200718 yr That type of teaching is short-sighted, simple-minded, and is costing people money long-term.If someone is in the situation you posted above, should they be putting money into a 401k? Someone living on minimum wage could pay off 21k in 2 years under his plan, if you cut to the bare essentials. No cable, no eating out, ride your bike to work. And work 2-3 jobs. I did it. It's not hard. But it definitely takes sacrifice. And it's worth it when in 2 years I can pretty much be very comfortable in going out whenever and whereever I want.
November 30, 200718 yr Like I said, with reasonable income. Odds are you have more than $100 dollars a month to put to those three. I've heard him tell many many people, vut out cable TV, eat rice and beans, bag groceries, deliver pizzas, you can't expect it to be easy. The amount I have to contribute is irrelevant to the debate. Explain why mathematically/financially it is better to pay off any of the first 3 prior to #4.
November 30, 200718 yr That type of teaching is short-sighted, simple-minded, and is costing people money long-term. Listen to his show 1 to 4 96.5 and call in with the question. TEll us when though, cause I would love to hear his answer.
November 30, 200718 yr Author That type of teaching is short-sighted, simple-minded, and is costing people money long-term. How so?
November 30, 200718 yr Author I owe my in-laws $1,000 at no interest. I owe $3,000 on a 0% interest loan on my car. I owe $5,000 on a 4% student loan. I ower $12,000 on my 18% credit card. I can afford to put $100 per month to one of those 3. Tell me how his numbers work out. I don't see it. It defies logic. If you only have $100 per month to go to those 3, you should probably sell your car immediately and pay off what you can.
November 30, 200718 yr Two ways: 1) get a 2nd job to aggressively attack the debt for more than $100 a month. 2) rework that budget and found other sources to cut to pay more than $100 a month. :thumb:
November 30, 200718 yr Like I said, with reasonable income. Odds are you have more than $100 dollars a month to put to those three. I've heard him tell many many people, vut out cable TV, eat rice and beans, bag groceries, deliver pizzas, you can't expect it to be easy. What about memberships to intenet chat sites?
November 30, 200718 yr Author The amount I have to contribute is irrelevant to the debate. Explain why mathematically/financially it is better to pay off any of the first 3 prior to #4. Because you are swiftly paying off debts and your list is shrinking, providing you the motivation to attack the debt instead of running from it. The interest isn't really a factor if you eliminate the principle.
November 30, 200718 yr Author What about memberships to intenet chat sites? If you can't afford it, cut it.
November 30, 200718 yr The amount I have to contribute is irrelevant to the debate. No it isn't. i don't care what order you pay them off in, if you only have $100 a month extra to pay your debt off (and I know you're speaking hypothetically) you need to take a new approach and find a way to have more income. The fact of the matter is, today's way of thinking that you will always be in debt is ridiculous.
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