Davis Motor Sales banner ad

dave says1KENTUCKY (8/10/14) — This week Dave discusses freezing your credit report and keeping motivation up.

Dear Dave,

Do you recommend a credit freeze in order to protect against identity theft?

Eric

Dear Eric,

I absolutely recommend doing that, especially if you’re not borrowing money anymore. However, putting a freeze on your credit report only provides partial protection against identity theft.

Identity theft is where someone, for example, signs up for a credit card in your name. If Joe Crook signs an application with your name and address, and the credit card company issues the card without checking —they blind-issue cards about seven out of 10 times — then the card will be issued to the thief. Having your credit frozen does nothing to stop that from happening. Still, if they check your credit and it’s frozen, chances are they won’t issue the card.

I’d also recommend having a good identity theft protection program in place. I have it on myself and all my team members at the office. If you don’t have this, and someone gets a card in your name, the credit card company will demand that you pay the bill. You can insist it’s not you, but that won’t do much good. Then, you’ll have to go through the hassle of filling out affidavits and police reports.

You may get out of paying for it in the end, but you’ll still have to spend dozens, if not hundreds, of hours dealing with the credit card company trying to get the whole mess straightened out!

—Dave

Dear Dave,

I make $30,000 a year. I’ve just started Baby Step 2 of your plan, and I’m paying off my debts from smallest to largest. I have $55,000 in debt, including $15,000 on a car loan. I recently picked up a part-time job to help pay down the debt, but sometimes I’m working 70 hours a week. Do you have any recommendation for staying motivated during this process?

Brandon

Dear Brandon,

I understand, man. We can all get tired and run short on motivation from time to time. There’s an old saying that fatigue makes cowards of us all. I know sometimes, when I’m traveling a lot, I can lose some boldness, strength or compassion when I get tired. So fatigue is a real issue if you’re working long hours and facing additional pressure.

The balance on your car is awfully high. My general rule is that you don’t want to own vehicles equaling half or more of your annual income. If I’m in your shoes, I’d sell that car and move down to a little beater for a while. I’m not talking about a rattletrap piece of junk, just something lots less expensive. You can find a decent used car to fit the bill, and that would get rid of a big chunk of debt in a hurry.

At this point, I think you just need to feel like you’re making some measureable progress. Sometimes, that means throwing a stick of dynamite into the middle of your life. Also, try keeping your debt snowball list where you’ll see it on a regular basis. I knew one lady who kept in on the fridge, so she could look at all the little red lines drawn through things she had paid off. It was a visual reminder of the progress she had made, and it provided motivation to keep working hard and become debt-free!

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

One Lane Traffic on US 68 Eggners Ferry Bridge Saturday, Feb. 28

KENTUCKY (2/26/15) — A contractor for the Kentucky Transportation Cabinet plans to restrict traffic to one lane on the… Read More

MPD Charges Four Individuals with Theft, Criminal Syndicate Charges

MURRAY, Ky. (2/27/15) — According to a Murray Police Department report, following an investigation in cooperation with… Read More

Most Read This Week

February 21, 2015 6683

Traffic Advisory for Western Kentucky

in Top News For All Sites by KTC
February 25, 2015 5744

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
February 25, 2015 5734

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 24, 2015 5694

Two Charged in Central City Meth Bust

in Local (Muhlenberg) Top News by Trooper Stu Recke
February 22, 2015 5473

Easter Cuties Pageant in Memory of Shanice Bean

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
February 21, 2015 5185

Local Administrators Warn Employees to Watch for…

in Top News For All Sites by Tammy Holloway, SurfKY News

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
January 28, 2015

UPDATED: Several Involved in Two-Vehicle Accident

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News

Stories Trending Today

February 26, 2015 2602

Man Accused of Holding Woman against Will,…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 26, 2015 2558

Woman Charged for Allegedly Selling Hydrocodone

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 26, 2015 1683

Area College Students Touched by Cancer are…

in Top News For All Sites by Tammy Holloway, SurfKY News
February 26, 2015 1679

Hopkins County Health Department Food Scores Thru…

in Hopkins News by Barry Franklin
February 26, 2015 1648

Probation and Parole Violators - February 26,…

in Video by Crime Stoppers
February 26, 2015 1544

Madisonville Police Arrest Reports - Feb. 26, 2015

in Hopkins News by Madisonville Police Department
February 26, 2015 1368

Walmart Evacuated after Customer Alerts 911 of…

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
February 26, 2015 1344

Super Sunday Hall of Fame Alumni Honored College…

in Top News For All Sites by Joyce Riggs
February 26, 2015 1027

Lions Man, Woman of Year Announced

in Local (Hopkins) Top News by Chris Findley
February 26, 2015 919

Gov. Beshear Announces NASCO Expansion in Bowling…

in General News For All Sites by Office of the Governor