Get Out of Debt Forever

Recession is a bad time for everyone. Businesses are down, prices go up and people lose jobs. In turn, they lose their houses, dig into their savings (if ever they have any) and fall deeper into debt. Americans are growing more concerned on how to live on cash everyday and not be dependent on credit card debt and loans to get what they need for the mean time. It is really frustrating and harassing when debt piles up and debt collection agencies start calling in everyday, sometimes more than once a day.

This where the ideal principle of Dave Ramsey comes to mind. He believes the freedom from debt is the only way to live and he highly encourages families to pay off all debt before buying and doing anything. I have a friend who did what Dave Ramsey has been telling in his book. He and his wife paid all debts in two years maintaining only a $1000 emergency cash refund. After that it was easier for them to save because all the money that went into paying for debt before became savings automatically once they have closed their accounts. It is also good practice because shortly after his wife got pregnant, they decided to live on his sole income and even survived with savings to boot.