| Purpose of Loan | | The purpose of my Prosper loan is to pay off two high interest credit cards. In December of 2007 we found Dave Ramsey and began applying his principals to our lives. We created an allocated spending plan, began living out of envelopes, and began our debt snowball. In close to three months we have now been able to pay off 3 things for a total of $7,000. |
| My Financial Situation | | I have good credit and have always made my monthly obligations. Before Dave Ramsey we were living pretty much like most Americans, paycheck-to-paycheck, and it felt as if we were always going to have payments. I have read every book that has been written on getting out of debt, tried many get rich quick schemes (where do you think some of this debt came from) but really never was getting ahead or felt like we were making any progress. But when I read ?My Total Money Makeover? I began to get excited. Dave Ramsey said that money is about 80% behavior and only 20% about knowledge. This immediately made sense to me and I began to truly study his teachings and listen to him daily on his radio program. When we first began we had the modified Dave Ramsey plan, because I felt I knew our situation better than Dave could; however, after about one month of trying it our way we decided to go back to the book and figure out what Dave said and where we went wrong. We found that really we were doing many things our way and we were just calling it the Dave Ramsey plan ? so we sat down one night and created a budget, figured out what debt we had and how much we owed, created a whole bunch of envelopes, and then funded them with cash. It is truly amazing what a little planning and forethought can do for your financial future. We are now enrolled in Financial Peace University through a local church. We are on our 5 out of 13 lessons. |
| Allocated Spending Plan | | Monthly Income: | $7,300.00 | | Outflows | | Tithes and Offering: | $700.00 | | Housing: | $1,800.00 | | Utilities: | $680.00 | | Food: | $400.00 | | Transportation: | $400.00 | | Clothing w/Dry Cleaning: | $200.00 | | Medical / Health: | $75.00 | | Personal: | $800.00 | | Recreation: | $50.00 | | Left for Debt: | $2,195.00 |
|
