A FATHER OF THREE, drowning in credit card debt, turned to the experts at Ramsey Solutions for help.
He was $126,000 in the red, but received a helpful tip to help review his financial future.
Tony from Rochester, New York, called The Ramsey Show after your credit card debt became almost unmanageable.
He racked up $126,000 in debt after being unemployed for a year.
Even though he was now earning $100,000 at his new job, he couldn’t pay off the debt any faster than the interest was accumulating.
His total minimum monthly payments were $3,500.
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“It’s gotten to the point where, after paying my bills, subscriptions and other things I’m doing, the amount of credit card debt I have pretty much takes over the rest of the paycheck,” he said.
Experts Jade Warshaw and Rachel Cruze listened sympathetically to Tony’s struggles.
“I can hear it in your voice, Tony. This is hard, it’s really hard,” said Rachel, who is Dave Ramsey’s daughter.
Tony’s family of four was down to just one car, but he also owed $30,000 in payments on it.
He was even considering selling his house or using a debt consolidation service.
Financial professionals told Tony that his wife, Inna, might need a job even though she was already caring for their three children.
“I think there’s room for you to work too because right now, most of the money you can bring in is what’s going to break that cycle,” Jade said.
“I always say, get a job until you can O work, because everything you do will help you.”
“Go leave the kids and go work at a bakery,” Rachel suggested.
Jade and Rachel also warned Tony against relying on debt consolidation services.
“Here’s the thing, what’s going to solve this problem is you,” said Rachel.
“It’s not rearranging this credit card and trying to find a lower interest rate – that’s not your problem.
Dave Ramsey’s 7 Baby Steps
Dave Ramsey advises his followers to follow a seven-step plan to save for emergencies, pay off debt, and build wealth.
Step 1: Save $1,000 for your initial emergency fund.
Step 2: Pay off all debts (except the house) using the debt snowball.
Step 3: Save three to six months of expenses in a fully funded emergency fund.
Step 4: Invest 15% of family income in retirement.
Step 5: Save for your children’s college fund.
Step 6: Pay off your house sooner.
Step 7: Build wealth and give.
“The problem is that you have lived through a cycle with your money that has put you in this problem and this mess.
“But the beautiful thing is that, yes, you were the ones who got into this mess, but you are the ones who are going to get out of it.”
See how one woman paid off $243,000 in debt in 31 months thanks to Dave Ramsey’s methods.
And find out how to make a 0% interest credit card work for you by using it responsibly.
This story originally appeared on The-sun.com read the full story
