Credit and Debt

The following is from Dave Ramsey's "The Total Money Make Over" workbook. Chapter 3: Debt is not a tool: Debt Myths

1. In 1910, the Sears catalog stated, "Buying on credit is folly." Nearly a hundred years later, Sears now makes more money on the interest paid on its credit-card accounts than it does on the sale of merchandise.
2. The founder of JC Penney department stores was a man nicknamed James "Cash" Penney because he personally detested the use of debt or making time payments. Today, Penney's makes millions each year on their customers who use plastic.
3. Henry Ford thought debt was a lazy man's method of purchasing items. As a result of Ford's belief, the Ford Motor Company did not offer financing plans until ten years after General Motors offered them. Today, however, Ford Motor Credit is one of the most profitable divisions of Ford Motor's operations.
4. Proverbs 22:7 says, "The rich rules over the poor, and the borrower is servant to the lender."
5. If you want to know how to get and stay skinny, talk to skinny people. If you want to know how wealthy people get and stay wealthy, talk to wealthy people.

Barring any unexpected emergency I will be completely out of debt by following Dave Ramsey's plan by the end of 2010. This after having flounder for years with trying to get out of debt on my own. It has just taken a plan and focused hard work. http://www.daveramsey.com/