dave says 2016 aKENTUCKY (12/10/17) — This week Dave Says pay off debt faster with increased salary from a new job.

Dear Dave,

I just accepted a new job that will pay me $30,000 a year more than my old position. I’ve got about $55,000 in debt I’ve been working hard to pay off, and I know now I need to adjust my budget. Do you have any advice?

Mitch

Dear Mitch,

The first thing I’d say is don’t go crazy on any big-ticket items while you’re paying off debt. Keep it simple, and go out to celebrate with a nice dinner after you get your first paycheck. Remember, the more you put toward debt, the faster it goes away.

For the time being, I want you to remain passionate about getting out of debt. Your thought process needs to be, “Wow, I got a new job making more money. I can get out of debt even quicker!”
Again, I’m okay with you adjusting a bit that first month and having a little fun to celebrate your good fortune. But after that, I want you to turn around and attack that debt with even more intensity than before. Then, once you’re out of debt, you can celebrate that with something a lot nicer.

Congratulations, Mitch.

—Dave


. . .
 

Dear Dave,

You say to never give collectors access to your checking account. Does that include debit cards, too?

Sue

Dear Sue,

Yes, it does! Collectors are looking to get as much as they can on a bad, late debt. I’ve seen numerous situations where collectors have taken more than the agreed-upon amount from someone’s account once they gained access. To be fair, the collection business does have a few good people in it. But it also has those who will lie and make threats.

If you’re doing something like scheduling utility payments to come through your debit card or out of your personal checking account, that’s perfectly fine. But there are much safer ways to handle situations with debt collectors. You can send a money order overnight, or wire the cash to them. You can also send a cashier’s check. Some folks have even used pre-paid debit cards that aren’t attached to any of their accounts.

The pre-paid debit card isn’t my favorite way to handle these things, but it’s a lot better than giving a dishonest collector the opportunity to really mess you up.

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.
 
SurfKY News

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.

sitelogosm© Copyright 2008 - 2018 SurfKY News Group, Inc. All rights reserved.
This material may not be published, broadcast, or rewritten without permission.

Click here to subscribe to receive daily updates by email.

Most Read This Week...

Jul 16, 2018 17735

UPDATE: Authorities Report Felony Drug Arrest in N. Madisonville

by Doreen Dennis, SurfKY News
Jul 17, 2018 7937

UPDATE: Driver Charged with DUI, Texting after Crash

by Nick Risley
Jul 17, 2018 6533

UPDATE: Ruptured Gas Line Repaired in Cairo

by Nick Risley
Jul 16, 2018 6202

Henderson Man Accused of Striking 3 Pedestrians with Truck

by Doreen Dennis, SurfKY News
Jul 16, 2018 5614

CCPD Charges 2 with Meth Trafficking

by Rita Dukes Smith, SurfKY News Director
Jul 15, 2018 5292

Green Street Collision Results in Injuries

by Nick Risley
Jul 17, 2018 4830

Ohio County Man Named Post 16 KSP Trooper of Year

by SurfKY News
Jul 18, 2018 2863

Duo Charged with Meth Trafficking after Woman Gives Birth at Home

by Rita Dukes Smith, SurfKY News Director
Jul 17, 2018 2810

Ohio County Sheriff's Reports Released - July 17

by Janice Stone

Most Read This Month

Jul 11, 2018 19546

UPDATE: Several Injured in Greenville 3-Vehicle Accident

by Rita Dukes Smith, SurfKY News Director
Jul 17, 2018 17735

UPDATE: Authorities Report Felony Drug Arrest in N. Madisonville

by Doreen Dennis, SurfKY News

Weather brought to you by

84°
28°
°F | °C
Partly Cloudy
Humidity: 78%
Fri
Partly Cloudy
74 | 94
23 | 34
Sat
Thunderstorms
72 | 84
22 | 28
Sun
Scattered Thunderstorms
69 | 81
20 | 27
Mon
Partly Cloudy
68 | 83
20 | 28

Stories Trending Today

Market Report

Market Report brought to you by