Comments on: A little “DOLP” will do ya! http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/ Articles and essays on success, personal development, and personal improvement Thu, 28 Aug 2008 03:29:56 +0000 http://wordpress.org/?v=1.5.2 Comment on A little “DOLP” will do ya! by: Jacob http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-25088 Mon, 03 Mar 2008 02:06:07 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-25088 @slothX - I've come to realize that the general idea of the DOLP plan is to get you paying down debt, and to see small wins by knocking out balances more quickly. It's almost exactly what Dave Ramsey teaches, pay down your smaller debts first. It's not the best mathematically speaking, but you get to see small bills just "go away" and that keeps you motivated to keep paying on all your other bills. Once you get a few quick wins under your belt you'll be feeling good and on your way to making a significant change for the better in your life! So don't sweat re-doing all your DOLP numbers each month. Get a plan together that you feel comfortable with - be it DOLP or Dave Ramsey (or any others like these) - and start working to get out of debt! The most important thing is to cut up credit cards and cancel revolving accounts that might let you get back into trouble. It's not enough to pay debt off - you have to change the way you THINK about debt so you don't incur NEW debt along the way! Regards, Jacob @slothX - I’ve come to realize that the general idea of the DOLP plan is to get you paying down debt, and to see small wins by knocking out balances more quickly.

It’s almost exactly what Dave Ramsey teaches, pay down your smaller debts first. It’s not the best mathematically speaking, but you get to see small bills just “go away” and that keeps you motivated to keep paying on all your other bills.

Once you get a few quick wins under your belt you’ll be feeling good and on your way to making a significant change for the better in your life!

So don’t sweat re-doing all your DOLP numbers each month. Get a plan together that you feel comfortable with - be it DOLP or Dave Ramsey (or any others like these) - and start working to get out of debt!

The most important thing is to cut up credit cards and cancel revolving accounts that might let you get back into trouble. It’s not enough to pay debt off - you have to change the way you THINK about debt so you don’t incur NEW debt along the way!

Regards,

Jacob

]]> Comment on A little “DOLP” will do ya! by: slothX http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-25084 Mon, 03 Mar 2008 01:51:34 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-25084 I understand the DOLP thing. Yes, I too and drowning in debt, but what I wondered is when I create the list, do I pay off the lowest one each month when the DOLP is recalculated or do I calculate the DOLP once and that's it? I say this because I calculated the DOLP and each month it changes from card to card. One will have the lower DOLP and another the next month. Am I doing something wrong? I've recently paid off a car and am applying the amount that I paid toward the lower DOLP card. One more payment and it's gone for good! I've also heard to keep the cards with zero balance and not use them to build up your credit, instead of closing the account? Is this true to keep it open? Thanks for great tips. I understand the DOLP thing. Yes, I too and drowning in debt, but what I wondered is when I create the list, do I pay off the lowest one each month when the DOLP is recalculated or do I calculate the DOLP once and that’s it? I say this because I calculated the DOLP and each month it changes from card to card. One will have the lower DOLP and another the next month. Am I doing something wrong? I’ve recently paid off a car and am applying the amount that I paid toward the lower DOLP card. One more payment and it’s gone for good! I’ve also heard to keep the cards with zero balance and not use them to build up your credit, instead of closing the account? Is this true to keep it open? Thanks for great tips.

]]> Comment on A little “DOLP” will do ya! by: Im getting out of debt! http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-19227 Tue, 15 Jan 2008 13:43:36 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-19227 Ok, my spelling and typing sucks. So does debt, get over it. Ok, my spelling and typing sucks. So does debt, get over it.

]]> Comment on A little “DOLP” will do ya! by: Im getting out of debt! http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-19226 Tue, 15 Jan 2008 13:41:08 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-19226 "I don’t know if paying a 4.99% card over a 9% card is the best financial sense." Maybe it doesn't. But I must say, My wife and I (who are currently helb back by 152,000 in debt THIS INCLUDES OUR MORTGAGE) have implimented this program and in 1 month have paid off 3 cars. They wern't huge balances (3000 total) but the point is, that is an extra 150.00 per month towards the other debt. I've done the number crunching, numerous times, I DO IT OUT OF BORDEM AND FOR FUN NOW, if you made min pymnts on everything and paid a little more towards the highest card, (in our case the highest is 18,000) yes, you will see debt reduction, BUT you really don't have that much extra to put on other cards. God forbid if you had a situation that required you to pay something immediatly and you didn't have it b/c you were paying off the highest c.cc first. As I said before, we eliminated 3000 in one month, thats 150 towards our next card of 1500 w a min monthly payment of 50. Do the math. Now we're paying 300 a month. That's a 5 month payoff. After that, we have 350 to our next card. I worried about paying off the highest interest card first too. Believe me, DONT! By the time you get to it (in our case we'll have 1000 a month to pay towards it in 1.5 years) the balancewill drop quickly andso will the minimum. This really is a no brainer. By the way, di I mention our household income is 47k? That is just my wife's job. I'm out of work and we still have done this with success this month. This will still be true if I stay unemployed. IMAGINE WHAT WILL HAPPEN WHEN I GET A JOB! Another thing to note: our debt is 152,000. By our calculations, this will be paid off in 6 years; home, credit cards and all. Calculate your credit card payoff with you home on minimum payments using DOLP and do it with your motgage. That number you get (BALANCE / MIN. PAYMENT) that's how long in years it will take you if you pay only minimums. Scary huh? DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! “I don’t know if paying a 4.99% card over a 9% card is the best financial sense.”
Maybe it doesn’t. But I must say, My wife and I (who are currently helb back by 152,000 in debt THIS INCLUDES OUR MORTGAGE) have implimented this program and in 1 month have paid off 3 cars. They wern’t huge balances (3000 total) but the point is, that is an extra 150.00 per month towards the other debt. I’ve done the number crunching, numerous times, I DO IT OUT OF BORDEM AND FOR FUN NOW, if you made min pymnts on everything and paid a little more towards the highest card, (in our case the highest is 18,000) yes, you will see debt reduction, BUT you really don’t have that much extra to put on other cards. God forbid if you had a situation that required you to pay something immediatly and you didn’t have it b/c you were paying off the highest c.cc first. As I said before, we eliminated 3000 in one month, thats 150 towards our next card of 1500 w a min monthly payment of 50. Do the math. Now we’re paying 300 a month. That’s a 5 month payoff. After that, we have 350 to our next card. I worried about paying off the highest interest card first too. Believe me, DONT! By the time you get to it (in our case we’ll have 1000 a month to pay towards it in 1.5 years) the balancewill drop quickly andso will the minimum.
This really is a no brainer. By the way, di I mention our household income is 47k? That is just my wife’s job. I’m out of work and we still have done this with success this month. This will still be true if I stay unemployed. IMAGINE WHAT WILL HAPPEN WHEN I GET A JOB!
Another thing to note: our debt is 152,000. By our calculations, this will be paid off in 6 years; home, credit cards and all. Calculate your credit card payoff with you home on minimum payments using DOLP and do it with your motgage. That number you get (BALANCE / MIN. PAYMENT) that’s how long in years it will take you if you pay only minimums. Scary huh?
DO IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

]]> Comment on A little “DOLP” will do ya! by: Jacob http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-10391 Wed, 26 Sep 2007 02:56:48 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-10391 @Mabel - I don't know if paying a 4.99% card over a 9% card is the best financial sense. I've since read that one of the keys behind the DOLP strategy is that you'll pay off the cards with a lower DOLP number faster - and that gives you some encouragement to keep with the plan (since you see some tangible progress). Of course, if I were you I would crunch the numbers and figure out how much more it will cost you to carry a balance on a card at 9% interest versus 4.99% interest! @Mabel -

I don’t know if paying a 4.99% card over a 9% card is the best financial sense. I’ve since read that one of the keys behind the DOLP strategy is that you’ll pay off the cards with a lower DOLP number faster - and that gives you some encouragement to keep with the plan (since you see some tangible progress).

Of course, if I were you I would crunch the numbers and figure out how much more it will cost you to carry a balance on a card at 9% interest versus 4.99% interest!

]]> Comment on A little “DOLP” will do ya! by: mabel http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-10231 Sat, 22 Sep 2007 17:10:19 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-10231 I have figured my DOLP and I am confused I have 2 cards and the DOLP is telling me to pay off my 4.99% card first and then pay off my 9% card after. I am not sure this makes sense to me Can you explain it Mabel I have figured my DOLP and I am confused I have 2 cards and the DOLP is telling me to pay off my 4.99% card first and then pay off my 9% card after. I am not sure this makes sense to me Can you explain it Mabel

]]> Comment on A little “DOLP” will do ya! by: Steve B http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-4268 Fri, 27 Apr 2007 00:59:25 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-4268 Very very interesting. Good points made here. Very very interesting. Good points made here.

]]> Comment on A little “DOLP” will do ya! by: A little "DOLP" will do ya! - AllanCaguiat.com http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-2137 Fri, 09 Feb 2007 12:15:39 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-2137 [...] January Allan Caguiat03:46 amAdd comment “Okay admit it - statistically speaking - you have credit card debt.” [...] […] January Allan Caguiat03:46 amAdd comment “Okay admit it - statistically speaking - you have credit card debt.” […]

]]> Comment on A little “DOLP” will do ya! by: Get Rich Slowly » Carnival of Personal Finance http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-75 Tue, 16 May 2006 12:47:35 +0000 http://www.successminders.com/2006/01/31/a-little-dolp-will-do-ya/#comment-75 [...] This week’s Carnival of Personal Finance is up at 2million.  The host’s picks focus on 401(k)s, though there are many posts on a variety of subjects, including a great overview of David Bach’s DOLP method for eliminating credit card debt. [...] […] This week’s Carnival of Personal Finance is up at 2million.  The host’s picks focus on 401(k)s, though there are many posts on a variety of subjects, including a great overview of David Bach’s DOLP method for eliminating credit card debt. […]

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