Does Anyone Have Any Info on Debt to Wealth?

bankrate.com has a lot of free calculators for "How long will it take" to pay down debt in various sceneraios: you can adjust the amount owed, percentage rate, how big a payment you can make or how soon you want to pay it off, etc. It also has articles about various finacial concerns (though I admit I mostly have only tooled around with the calculators).

I haven't tried the program you mentioned, but just from looking at info about it, I would not spend money on it. It looks like advice that you can get free other places. If you pay extra on your debt, of course you will pay it off faster and pay less in interest. Take that money you would pay for the program and make an extra payment on your credit card instead.

I like the method Crown Financial advises on paying off debts faster. You can read about it here: http://www.crown.org/LIBRARY/ViewArticle.aspx?ArticleId=765.
And here's a calculator you can use to see how it would work for your situation: http://www.crown.org/Tools/Calculators/Debt_AcceleratedPa...

Basically, the method is to first stop adding to your debt. Second, make a list of all of your debts--the amounts, interest rates, and minimum payments--and put the list in order from highest interest rate to lowest.

Then each month, pay the minimum payments on all the debts, except the first on the list--the one with the highest interest. Any extra money you can pay each month should be applied to that first debt on the list. ANY extra money you can pay means less interest you will owe and the quicker you will pay it off, so pay as much extra as you possibly can.

When the first debt on the list is paid off, don't consider that amount you were used to paying (say it's $100 a month) as free money now. Instead, "roll it over" to the amount you will pay to the second debt on the list. So now you are paying extra on the second debt every month. When the second debt is paid off, take that same amount and apply it every month as an extra payment to the third debt. Each time a debt is paid off, the whole amount gets rolled over to the next debt, so pay off is accellerated.

Another thing to keep in mind, as your debts are paid down and the minimum payment required is less, don't lessen the payment you send. For example, if you used to send in a required payment of $50, and the minimum payment is lowered to $40, keep sending the $50. That extra will help pay the debt quicker.

Good luck with it all. And Happy New Year!

PS--I looked up Dave Ramsey and his method is similar to this one. He calls it the "snowball" instead of "rollover", but it's the same idea. Only, he has you list the debts in order of smallest amount owed to largest. If you do that, you'll see the first debt paid off more quickly and be encouraged to continue. But the advantage to paying off the highest interest debt first is that you will save money by throwing away less in interest.

You could always compromise by alternating low balance and high interest debts on your list. But the main idea is to pay as much extra as you can, and when each debt is retired to move that amount you've been used to paying and apply it as additional payment on the next debt. It takes self discipline, but you can do it!

Yes, I will show you for free. Please don't put out any money for it. Yes, it does work and it is up to you not to spend and put any extra money on the first bill to be paid off. Then you use that money on the next bill when the first is paid off. It is great to get rid of debt. I might even have some downloads that I can give you. It is simple once you see it. There is actually a class on it at Santa Rosa JC. I don't know where Orangevale is but with computers and phones that does not matter. I see someone mentioned Dave Ramsey and I have his book which I will sell for $5.00 if you wish. It was brand new when I bought it.

It is good there is this venue for asking questions. Save your money anyway you can. Jan 1 was my stop date for any spending.

the response below is correct.

Just want to chime in another plug for Dave Ramsey. His book is great, his radio show is good as well. We are on board to eliminate credit card use altogether and put $$ in savings, so excited to be on a plan to get rid of our debt! Good luck and congrats to you for asking and for getting interested in debt reduction, we all could use it!
D.

There are MANY reputable FREE debt advice counselors. I would not suggest paying anyone to do this. Talk to your bank. They probably will have suggestions. Also, go to http://www.techcu.com - Their front page has a link to an excellent budgeting and advice page with suggestions on finding free counselors. Don't fall prey to a scam.

-T.

It sounds like a program I read about. It's very basic and simple. However, you might try checking out a book called "Debt Free on Any Income" first. It teaches the same basic principles, but it is also full of other ideas as well. It also comes with a CD with spreadsheets all made up for you to just plug in your info and go from there. It's been really helpful for me. The book is geared towards Mormons because it does talk about tithing and stuff like that, but most of the information is good for anyone of any faith (or non-faith). I'm sure you can get the book anywhere, but I know for sure you can get it at the Deseret Bookstore off Fair Oaks blvd (it's in the corner shopping strip you pass if you were to go to Sunrise Mall the back way).

No I wouldn't. Those things are usually a waste of money. I would go to dave ramsey's website. He is incredible. He has different steps for you to complete to get out of debt and take control of your finances. His book is very good as well. A lot of info on stuff I would never have even thought about. I love it. Good luck getting out of debt!!

Check clarkhoward.com to see if he has commented on this program. Then, few any tips he has on his website for doing it yourself. That's nine dollars you could use to pay down your debts.
Happy New Year,
G.

Hi Tiffany-
I have not heard about that, but depending on personal beliefs, I recommend the Crown Financial program. It teaches you to live within 80% of your actual income. 10% then goes to tithing- if you agree/believe in that, and the other 10% goes into your savings account. It allows you to chart your payments, redo your budget, etc., and is taught through a number of churches. The deacons at the church I work for paid for me to go, and it was a life changer. Also, my parents did this when they were younger and my sister did it the year she got married. Out of the entire family, though, I was apparently the only one who did not know how to manage debt, and my husband and I have been through the ringer. We even went to a debt counselor, showing her what we had learned through Crown and asking if there was any more they could do for us. She said we were doing more through that self chosen program than any debt counselor could do for you, and that was just last year! My best advice is to find a church, even if you don't wholeheartedly agree with the reasoning, the principals are the same and the debt relief , etc will be the same. ALSO, the last bit is that it comes with a computer program for your budget and bill payment schedule to keep you on track and to show you what is left.
I hope this helps!
-E. M

Paying for a program is not always bad. I'm using a program that I paid for and have paid off more of my debt than I would have using any of the other systems mentioned in the responses ... which more than paid for the cost of the program. Do what you think is right for your situation, but be careful of scams and do your due diligence. Someone once told me that the internet is like a bathroom wall: you can write whatever you want on it and it's usually only someone's opinion. To see what I mean, Google "Mother Theresa" then Google "Mother Theresa bad". You'll find 999,000 posts about how badly people thought about her. Search the Better Business Bureau site and also see if you can find a reputable company who stands behind the program such as Ernst and Young. The key is to know how much "extra" to pay and the right time to pay that "extra" :) Good luck because there are lots of programs out there...

Hi Tiffany
I would NOT send in any money whatsoever. However, you might want to pick up one of Dave Ramsey's books. He was once in debt and made his way out of it and now he has his own talk show and does seminars where he talks about getting out of debt and how you can do it.
One thing he does recomend is getting rid of credit cards and begin paying by cash. Buying NOTHING on credit. if you can't pay for it with cash, his opinion is... you can't afford it. Many people have gotten out of debt using his suggestions. If you don't want to buy one of his books, maybe check it out at the library.

best of luck to you!

Don't pay. Simply do it. A lot of it is learning (which is FREE at the library) and then it all boils down to self discipline. Don't spend more than you make. Pay off more than the minimum balance (preferably in full each month). Watch your pennies (ie, the starbucks, the movie rentals, the snacks, the lunch outs, etc)