My Debt Story (Dave Ramsey Collab)

Below is a video I made to introduce everyone to my new YouTube channel. I figured the best way to go about it is to just go ahead and lay out how much debt I have.

Right now, I’m sitting on quite a bit of debt, but actually – not too long ago – I was sitting on a lot more, almost twice the amount I have now. Yes, I started Broke Girl Rehab to keep myself accountable, but also to encourage other women like me to get on top of their finances.

I’m very much a person that connects through other people’s stories and by sharing my story, I hope to inspire other women like me to use money to improve their lives in a drastic way.

So, with that – here is my version of the Dave Ramsey Collab as introduced by Jennifer from the YouTube channel, A Path to Debt Freedom.

(Scroll down read the video transcript below.)

How long have you been doing the Dave Ramsey plan?

I started listening to him right after FinCon, which is an annual conference for financial bloggers, and if you’re interested in FinCon I actually talked about it in my last video.

But, anyway – I was at FinCon and I got so fired up from the conference because I met all of these people who had already completed their debt-free journeys and were doing AMAZING things, like full-time freelancing and traveling and creating these entire blogging EMPIRES by spreading the message of frugal living and financial independence.

And, so I was like, alright – I need to try something new because I am so sick and tired of carrying this debt.

So, I started watching different YouTube videos to get inspired, and I apologize because I completely forgot this YouTuber’s name but she made a video about the different financial videos she shares with friends, and the first one she mentioned was the live presentation of Dave Ramsey’s 7 Baby Steps.

And so, I watched that video and was TOTALLY impressed and so I picked up the Total Money Makeover audiobook, which I just finished last week.

What Baby Step are you currently working on?

I JUST got finished with Baby Step 1, which is to complete a starter emergency fund of $1000.

Now, I know a thousand dollars isn’t a crazy ton of money for some people, but – for me – it feels good to have a little bit of financial peace of mind, and know that if anything comes up – for the most part – I will be okay.

I’m really excited to get going onto Baby Step #2, which is to basically throw all of your money towards paying off debt.

What was your total debt when you started Baby Step 2? What is your total debt now?

Right now my total debt is about $29,000, but when I started paying my debt off in 2013, I was at a total of $57,847.

I actually remember when I first saw that number – my heart just sank because I couldn’t even comprehend being that much in debt. I was only 25 years old at the time!

When the letters first arrived, I called my mom, crying and asking, “What am I going to do?” and she was just like, “Ummm this is not new. You’re not the only person on the planet with debt. Just pay double of the smallest amount, and minimums on the rest and you’ll be fine.”

So, I did that for a while until 2015, when I discovered the personal finance community through the Listen Money Matters podcast, which inspired me to pay off a lot more debt until this year, where I got kind of lazy, but now here I am again – BACK ON TRACK!

What estimated date do you expect your Baby Step 2 to be complete, and your debt to be paid-off?

I’m not sure, but my goal is Debt Free Before 30, so I hope I pay it off before the year 2018.

Do you plan on doing a debt-free scream with Dave Ramsey, either on the phone or in person?

I might do a debt-free scream here on my YouTube, but I’m probably not going to do the actual debt-free scream with Dave Ramsey. I’m a bit too shy for that.

Did you take a Financial Peace University class either in person or at home, or did you read the Total Money Makeover book, or did you learn about Dave Ramsey online?

I listened to the Total Money Makeover audiobook, which I highly recommend. If you have never used Audible before, you can get a trial subscription for 30 days and listen to Dave Ramsey’s book there.

Did you do budget prior to learning about Dave Ramsey (whether zero-based, or not)?

I’ve always had some sort of budget, but they were definitely more like guidelines, not actually something I was supposed to follow.

Now that I’m doing Dave Ramsey’s plan, I plan to be way more intentional about my budget and post budget reviews each month to keep myself accountable.

Have you tried Dave Ramsey’s new free Every Dollar Budgeting website? If yes, what are your thoughts?

Nope! And, right now I have a subscription to the You Need a Budget app, so I probably won’t try it until that’s finished.

Do you consider yourself the free-spirit or nerd of your relationship?

Maybe the free spirit? But, as I’m getting more on top of my money, I’m definitely gravitating towards becoming the nerd of my relationship. (Hi Matt!)

Are you a hardcore Dave Ramsey follower? Or, have you tweaked/changed some things about the plan? If you have tweaked/changed some things about the plan, please share what and why.

So, already I know I’m not going to be a Dave Ramsey follower because I will still contribute to my 401K even though I need to pay off my debt. It’s 100% match, and it just doesn’t make sense for me to not get that money.

But, for the rest of it, I do plan on following it to a T.

Have you tried any of Dave Ramsey’s Endorsed Local Providers or other products/services he recommends? If yes, please give your feedback.

No, and I probably won’t because I already know what to do and my situation is very simple. I don’t own a house – I don’t even own a car – so all I need to do at this point is stick to my budget and throw as much money as I can toward my debt.

From your experience, do you think this plan works?

I’ve only been on this plan for about a month but it seems very common sense, so I have no doubt it will work.


2 comments on “My Debt Story (Dave Ramsey Collab)

  1. Awesome video, Katasha! I’ve been thinking about starting a YouTube channel for my blog too. I’ve tasked my husband with running the (potential) channel, because he wants to learn to do videos. He’s convinced that we need a $2500 setup (we don’t have a DSLR camera or good lighting in our apartment or anything). What equipment are you using, and what were your start-up costs (if any)?

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