How to Get Out of Debt with Dave Ramsey
- 1). Take stock of where you are.
The first part of Dave Ramsey's system involves gathering information about all of your debts and taking stock of where you are. - 2). Place debts in order.
Ramsey recommends placing debts in order from smallest to largest and approaching the payoff that way. - 3). Begin attacking.
Start by "attacking" the first debt and throwing everything you can at it. - 4). Create a debt snowball.
Once the first debt is paid off, take the payment amount from it and add it to the payment amount of the next debt. Then begin attacking that debt. This technique is called a "debt snowball." - 5). Continue until complete.
Continue the debt snowball until all non-mortgage debts have been paid off. Then you're ready to move on with the rest of Dave Ramsey's plan.
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