Me
My name is Bean and this is my blog. Hence the name. If you have comments or questions, just leave them in the comments area.
(old search)
BEANBLOG.COM
WE'RE DEBT FREE! (sorta)
Posted May 25, 2006 at 10:54:05 AM by Bean
Stef and I have been on the Dave Ramsey plan for about 15 months now. As of yesterday, we've finished step #2 - we are debt free except for our home - no car payments, no student loans, no home-equity line, no credit cards, NO NOTHIN'! We paid off around $25K total.

Math nerds and naysayers often think that the plan outlined here (warning: PDF) is a bad one - because it doesn't always make sense when you look strictly at the numbers. But I can tell you that it does work for me, and when it does, I get stoked, and when I get stoked, it works even mo betta.
TTags: ,
26 comments
Finch (May 25, 2006 at 11:21:43 AM):
I am not so much "sinking" in debt as being pulled down by a gigantic weight attached to my jugular.
bean (May 25, 2006 at 11:33:54 AM):
Finch: huh?
bigD (May 25, 2006 at 12:07:23 PM):
regarding jugulars, bean's hyster
corbin (May 25, 2006 at 12:12:58 PM):
i'm slowly getting ote of non-house debt, but i'm in no major rush to pay off student loans, although i am paying a little more than required on them.
Bigwillis (May 25, 2006 at 12:23:54 PM):
Debt free for one month and counting! FREEEDOM!!!
celeb (May 25, 2006 at 01:11:44 PM):
congrats!
foo (May 25, 2006 at 02:44:42 PM):
great job bean! way to stick it to the man!

we have about $7k of credit card debt. other than that it is just student loans and eventually, a house. no cars.

our ed loans are about 45,000, soon to be 100,000. but, 20,000 of that is in a 2.75% loan spread out for 20 years, and another 25,000 is in a 4.75% loan spread out for 20. so, i don't feel bad about those loans.

did dave ramsey mention how it is good to have debt sometimes because you can write off the interest on your taxes. wait a minute, that doesn't count for educational loans. i dont' feel as good about all that money I owe anymore.

I'll look into the plan regardless.



bean (May 25, 2006 at 02:51:53 PM):
re "good to have debt" : I hope you are kidding.
foo (May 25, 2006 at 03:06:10 PM):
i am not.
don't patronize me a-hole.
bean (May 25, 2006 at 03:10:48 PM):
at the very best, being able to write off debt gets you back to even, right?

and being able to write off intrest is a joke. I mean, if you have it, fine, but it's much mo betta not to.
m1 (May 25, 2006 at 03:14:15 PM):
You know who has the most debt? The richest people.

unsubscribe ramsey
subscribe math
m1 (May 25, 2006 at 03:15:10 PM):
Also, congrats. Seriously, if it works for you, go for it.
foo (May 25, 2006 at 03:22:41 PM):
well maybe I should go ahead and win the lottery, like i have been meaning to do, and then i can pay for everything with cash.

what i was saying, is that sometimes debt can have some small payback. if dave ramsey didn't want you to go in debt, he would tell you to rent an apartment. which i am sure he does nto, because going into debt in the form of a morgage allows you to pay money (the same rent money) into an investment, and also take money off of your taxes.

what does this mean:

"at the very best, being able to write off debt gets you back to even, right?"

do you mean that your write off of your taxes equals your interst payment? no, you just don't pay taxes on the interest. so it isn't a wash. it is just a little, somin' somein'.

foo (May 25, 2006 at 03:24:18 PM):
I also shoudl say i have only listened to him once, and he said that a listener was getting too much withdrawn on his paycheck then he needs too, which is essentially loaning the gov. money. that is good advice, i think, so far i like what he has to say, when is he on?
bean (May 25, 2006 at 03:28:41 PM):
2-4pm, AM970.

as for "do you mean that your write off of your taxes equals your interst payment? no, you just don't pay taxes on the interest. so it isn't a wash. it is just a little, somin' somein'. "... I habba no ideer what you are trying to say.
Jewfish (May 25, 2006 at 03:30:05 PM):
My opinion is that there's nothing wrong with debt, as long as you're smart about it. It depends on what the interest rate is, what it's doing for you, etc. I have 2k on a credit card that I'm paying off at $23/mo right now, normally I'd say that's stupid, but since I have 0% interest until 2009, I'm not sweating it.
foo (May 25, 2006 at 03:30:09 PM):
I was trying to guess what you meant by this statement:

"at the very best, being able to write off debt gets you back to even, right?"

you must listen to it at work then. i guess that is why i never hear it.

foo (May 25, 2006 at 03:31:07 PM):
0% until 2009? WHAT? whos dick did you suck to get that? where is the application for that one?
bean (May 25, 2006 at 03:42:23 PM):
I usually catch the last 10 minutes on the drive home.

As for debt - like m1 said - whatever works for you. I, for one, feel very liberated now that the only debt I have is a "necesary evil" (ie. home loan (ie. fingering)).

foo: I guess the root of the misunderstanding is the follwoign statement, which I would like you to clarify please: "did dave ramsey mention how it is good to have debt sometimes because you can write off the interest on your taxes."
bartow (May 25, 2006 at 04:12:58 PM):
subscribe 0% interest until 2009
foo (May 25, 2006 at 04:32:45 PM):
we'll rap at lunch tomorrowie.
bean (May 25, 2006 at 04:37:31 PM):
Jewfich got's a CC soooo good.
HOW GOOD IS IT ?
It's soooo good, even Dave Ramsey want's one !
DRUMSOUNDS !

rushing (May 25, 2006 at 05:33:16 PM):
got one from discover 0% for the life of the loan. Thinking about buying a house on it.
corbin (May 25, 2006 at 08:19:12 PM):
my discover has 0% on balance transfers for the life of the balance
Jewfish (May 26, 2006 at 04:46:53 PM):
It's a Best Buy Credit Card. I got the no interest deal when I bought my new TV. Unfortunately, the 0% interest does not apply on new purchases (at least I don't think it does). Still it makes it pretty easy to pay off that one purchase.
BigDumb (January 28, 2007 at 05:49:25 PM):
I used to think the rich borrowed and then invested to make money. I found out those who get rich then go broke do that. Then I tried it Dave's way. I'm two weeks debt free INCLUDING the house.

You see, I started reading books like The Millionaire Next Door and I figured out that spending less than you make and investing WITHOUT debt is how most millionares (like 90%) become that.

I'm not totally anti-debt, but after you interview a few people who owe nothing to anyone and have invested and built a huge nest egg you'll find out almost all of them swear debt is prison.

The debtor is truly slave to the lendor..

Name: (required)
Email: (optional)
No HTML markup allowed

<-click here if you are not a robot
Page contents copyright Bean 2003-2017
Admin