Medicated Money

Sunday, April 02, 2006

The Debt Re-Payment: Reloaded

We recently received a comment from one of our friends in the NCN Network, Debt Monster, discussing our 2006 goals and if we knew of Dave Ramsey and this financial advice. As many of you know, Dave Ramsey is a financial counselor that is the host of the 'Dave Ramsey Show' that is syndicated throughout the country. His philosophy is broken down into 'Baby Steps' that allow one to achieve small, simple financial goals one step at a time. Through completion of many of these baby steps, one can achieve financial freedom over a period of time. (Read more of these baby steps here.) After reading our blog, Debt Monster recommended this plan for us. We definitely appreciate our readers comments, and this weekend, we sat down to re-evaluate our debt repayment plan.

In re-evaluating our plan, we decided to factor in many different ideas. We looked at 12 different plans. These 12 different plans are a combination of ideas that we took from many different sources. Some of the ideas came from what we have learned from Dave Ramsey, others from reading other blogs, and others from advice from friends and family.

In each plan, we looked at what our monthly debt repayment would be, whether we would use all available money except $1000 for a baby emergency fund for repayment, when the entire amount (-$122,345) would be completely paid off, total interest paid during the payoff time period, and payoff of our 2006 goal of $36,500.

Here is the evaluation of each plan:



In our next post, we will discuss our evaluation of this chart and our decision on which plan to proceed with.

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