2 of 2 people found the following review helpful
This review is from: Debt-Proof Living: The Complete Guide to Living Financially Free (Debt-Proof Living (Paperback)) (Paperback)
This is a book that I really wish I could have read 20 years ago! Mary Hunt, in this book shares ideas and tips that helped her erase about hundred thousand dollars of what she would classify as "stupid debt" or non-secured debt. Probably the most common form of non-secured debt would be credit card debt. Mary Hunt's strategy is encouraging for a couple reasons. First it does not contain the word "budget" which many times can be intimidating and constraining. Second it can be tweaked. She gives suggestions for goals that can be obtained, but she stresses constantly in the book to go with what the individual feels they can accomplish. This does not take away from her encouraging the reader to push themselves. Her strategy seems doable even for those deep in debt.
Some of the highlights of her plan include the 10-10-80 model. The first 10 percent of the net paycheck should be given away. This can be given in many different places, but the best place is the church one attends. If a person does not attend a church, there are several places one could give. Hunt lists four reasons to give: Giving proves the condition of the heart, Giving connects one to the world, Giving connects one to God, and Giving teaches one's brain that they have more than enough.( Pg56-57). The next 10 percent is for saving. This is to "start building your defenses so that soon you will not have to depend on credit-card companies. You will be funding your own emergencies." (Pg 60) The remaining 80 percent is to pay the bills, get the groceries, and the rest of the living expenses that one has. Another highlight is what Hunt calls the RDRP or Rapid Debt Repayment Plan. "This plan is specifically designed for unsecured debt--not your mortgagee, home equity, loans or auto loans." (Pg 91). Hunt list four rules for the RDRP--1) No more new debt. That is do not charge anymore on the credit cards. 2) Pay the same amount each month, each month the minimum payment will go down, but keep paying the same amount each month. 3) Line up your debts according to the number of payments required, and 4) As one debt is paid, take its payment and redirect it to the regular payment of the next debt in line.
This book is well written. Hunt mixes in humor along with personal stories that help make her point. It is a fairly easy read especially considering the topic. Oftentimes finances can be a bit of a bore to read, but this book flows nicely. The advice in this book can help those that have gotten caught in the debt trap, but it can also help those that have not fallen to stay out!