"You've spent 90% of your brain power fighting custody for the last however many years. You spent almost 0% managing money. Agreed?"
"That's a 6 or an 8-month program and you're debt-free except the medical bills and the old landlord debt."
"The collections debt is the least urgent for one specific reason: once a debt is in collections, the damage to your credit score has already happened."
"The 28% credit card is the most expensive money D is borrowing. At that rate, every $1,000 sitting on that card costs $280 per year in interest alone."
D, a single father, faces $26,000 in debt and years of custody battles. Financial management was neglected due to personal struggles. Dave Ramsey advises focusing on high-interest debts first, specifically a $7,000 credit card at 28% interest and a $10,139 car loan at 13.63%. He suggests finding $1,500 monthly, cutting the budget by $1,000, and allocating $2,500 monthly to eliminate the $17,000 debt within 6 to 8 months. Collections debt is less urgent due to its limited impact on credit scores.
Read at 24/7 Wall St.
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