The Truth About Debt

“Money is the poor man’s credit card.”

- Marshall McLuhan

“Debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice!”

- Dave Ramsey

“Whether your annual household income is $20,000 or $100,000, living on a budget is probably the single most important thing you can do to get out of debt and to avoid debt problems down the road.”

- Managing Your Money all-in-one for Dummies

“If you have debt I’m willing to bet that general clutter is a problem for you too.”

- Suze Orman

“Debt makes arrogant assumptions about the future.”

-Mary M. Hunt in Debt-Proof Living

Statistics:

“Over 40% of US families spend more than they earn.”- Consumer Debt Statistics

“Americans carry, on average, $8,400 in credit card debt. If one were to make a 2% payment every month at an annual APR of 15%, it would take about 30 years to pay off and include about $13,000 in interest.” -Consumer Debt Statistics

“Roughly 37% of the debt in America comes from credit cards.”- America Debt Consolidation

“The typical household debt totals more than $38,000.” The Consumer Reports Money Book

The Basics:

Warren Buffett, one of the richest men in the world, gives his advice on debt in the following video. He refers to it as living on leverage. As Dave Ramsey says, “You don’t take diet advice from a fat person, and don’t take hair advice from a bald person. So don’t take money advice from a broke person.” Taking that advice it would be good to take Buffets advice on money principles.

Begin by understanding the meaning of debt and what it takes to escape. Here are some simple resources that will explain and offer help.

Debt Resources

1. You can’t live in denial any longer with Dave Ramsey’s piece on the truth about debt.

2. Escaping the mountain of debt: http://www.mint.com/blog/how-to/debt-cycle-11182010/

3. What is debt? from Investopedia

4. Want some debt guidelines from an expert? Follow Suze Orman’s 12 step program:

5. Statistics on Debt in America: http://blog.creditreport.com/?p=19581

6. Here is a living example of dealing with debt and moving forward. He shares the truth that after aiming you must eventually fire. You must begin to actually tackle the debt: Man vs. Debt

7. Another example of walking away from a life of debt, this blogger shares her story and life:

8. The Simple Dollar is a personal finance blog about facing debts and financial exploration. He shares his victories in paying off debt, as well as, daily struggles:

9. Follow Jen on her incredible journey from filling coffee pots to becoming the “Millionaire Mommy Next Door.” Here she shares some advice on debt and getting out of debt:

10. Suze Orman provides 10 points to be aware of in paying off debt, whether it involves credit cards or other variables:

11. If you are looking to live a debt-proof life, scan through expert Mary M. Hunt’s site here:

12. Blunt Money answers simple questions like, “Why do we get into debt?” This resource offers simple solutions for big problems:

13. This blogger breaks down the concept of “snowflaking,” popularized by Dave Ramsey. Here we get the perspective of someone actually applying it and how it works:

Interviews:

Take some advice from debt experts as they share their thoughts on debt live. These resources provide a little visual backup for all the articles and testimonies of others.

Suze Orman on addressing credit card debt and how to conquer the mountain:

Here is a video Dave Ramsey answers questions live about debt. These are real scenarios coming from the average public