What debt guru has a better method for getting out of debt? If you were to match Suze Orman up against Dave Ramsey and their debt free plans, who would win?
How does Suze Orman tell you to get out of debt?
Here are the steps that Suze Orman says to take to get out of credit card debt,
1. Figure out how much you are able pay each month towards a monthly debt payment for all of your debts.
2. Put an extra $10 on each minimum credit card payment you are required to pay.
3. Add up all of your minimum credit card payments and add $10 to each card.
4. If you are lucky the difference between the numbers in step 1 is more than the figure in step 3. It it is then apply the difference to the credit card with the largest interest rate.
5. One you have a card paid off, you continue on with the process until all of your credit cards are paid off.
Dave Ramsey uses the Snowball method for paying off credit cards
1. Get a list together of all of your credit cards. Put them in order from the highest balance to the lowest balance.
2. Pay as much as you can with the card that has the smallest balance and pay minimum payments on the other credit cards.
3. Once you have paid off a card, take the money you were paying and apply it to the next smallest balance credit card.
4. Keep on doing this until all of your cards are paid off. This method has also been referred to as the roll up method.
This information is of general interest only. Please contact a professional for financial advice.
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