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No. of Recommendations: 2

You wrote, I'm close to being out of debt and followed Dave Ramsey's program (google it),

1. save $1000 in CASH for emergencies (true emergency..not something is on sale emergency).
2. make a budget and assign every dollar a place to go.
3. all funds left over after necessities go to paying off debt.

4. pay off all debt except house before working towards 6 months bills.

If you don't watch your money and tightly budget then you probably waste a large amount in what I call nickle and dime leaks.

Look at his (Dave Ramsey) program for getting out of debt. I don't necessarily agree with his investing advice but his debt strategy has worked for me. I'm about 15 months (barring any major issues) from being out of debt except for my house.

I'm sure most of the regulars here know of Dave Ramsey's debt reduction program. He hardly makes any secret of how it works. He uses a modified snowball program that pays off the smallest debts first.

More power to you if it works for you. A lot of us argue Dave's program makes a foolish mistake - it lists debts by size, not interest rate. The fastest way to snowball your debts is always to pay down your highest rate debts first. There is just no arguing with the math - paying higher rate debts first simply saves money and time.

However Dave's method does appeal to people's need to feel they are accomplishing something. Regardless how artificial it is, knocking a creditor off the list does seem to give people an emotional boost. And some times that's what you need.

Of course if you'll go back through the board's posting history, you'll find Dave's program has been discussed to death ... though it has been a while since we've had a healthy argument [I mean discussion] about it.

- Joel
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