WHAT IF YOU COULD PAY OFF

MORE THAN $5,000 WORTH OF

DEBT IN JUST 90 DAYS.

BELIEVE IT OR NOT, THOUSANDS

OF ORDINARY AMERICANS HAVE

DONE JUST THAT WITH THE HELP

OF FINANCIAL EXPERT DAVE

RAMSEY.

TAKE A LOOK.

UNCHAIN WALL STREET.

THEY'RE GOING TO PUT YOU ALL

BACK IN CHAINS.

Reporter: AS POLITICAL

RHETORIC HEATS UP --

THIS IS WHAT AN ANGRY AND

DESPERATE PRESIDENCY LOOKS

LIKE.

Reporter: AND

CANDIDATES AND PRESIDENTIAL

HOPEFULS POINT FINGERS OVER

THE DEBT CRISIS, DAVE RAMSEY

SUGGESTS THAT MAYBE AMERICAN

VOTERS SHOULD REDIRECT THE

FINGER AT THEMSELVES.

HE SAYS IT IS NOT JUST

WASHINGTON THAT IS

OVERSPENDING.

THE AVERAGE AMERICAN SPENDS

AND BA BORROWS MORE THAN

THEY CAN AFFORD. IT HAS LED

TO THE MORTGAGE CRISIS, THE

CREDIT CARD DEBT, AND THE

NEWEST BUBBLE, STUDENT LOAN

DEBT.

ENTER DAVE RAMSAY.

THE "NEW YORK TIMES"

BEST-SELLING AUTHOR IS

RELEASING A REVISED AND

UPDATED EDITION OF HIS

FINANCIAL PIECE UNIVERSITY.

THE NINE-WEEK COURSE THAT

HAS EQUIPPED THOUSANDS OF

FAMILIES WITH PRACTICAL

TOOLS AND SOUND BIBLICAL

PRINCIPLES THAT HAVE LIFTED

THEM OUT OF DEBT AND HELPED

THEM SECURE THEIR PERSONAL

FINANCIAL FUTURE.

Pat: I'M HOLDING IN MY

HAND A VERY HEAVY BOX.

IT IS CALLED "FINANCIAL

PEACE."

DAVE RAMSAY IS HERE.

TELL US ABOUT FINANCIAL

PEACE UNIVERSITY.

THANK YOU, PAT.

FINANCIAL PEACE UNIVERSITY

IS WHERE WE'VE GONE INTO

CHURCHES ALL ACROSS AMERICA,

18,000 CLASSES TAUGHT THIS

YEAR WITH THIS NEW VERSION,

IT IS NINE WEEKS OF HOW TO

HANDLE MONEY GOD'S AND

GRANDMA'S WAYS.

AND IT TURNS OUT GOD IS A

PRETTY SMART FELLOW.

Pat: OKAY, YOU'VE GOT

SEVEN BABY STEPS TO FINAL

PEACE.

GIVE US A COUPLE OF THEM.

FOLKS HAVE TO HAVE A

LADDER TO CLIMB.

YOU NEED TO VERY CLEARLY

OUTLINE EACH RUNG OF THE

LADDER.

BABY STEP ONE, YOU PUT

$1,000 CASH IN THE BANK.

AND JUST GET A LITTLE

STARTER, RAINY DAY FUND.

THE BIBLE SAYS, "IN THE

HOUSE OF THE WISE ARE STORES

OF CHOICE FOOD AND OIL."

AND WE'RE GOING TO LIST ALL

OF OUR DEBTS, EXCEPT OUR

HOUSE, SMALLEST TO LARGEST

AND ATTACK THOSE DEBTS.

GET EXCITED.

GET INTENSE.

GET FOCUSED.

SELL SO MUCH STUFF, THE KIDS

THINK THEY'RE NEXT.

GET ON FIRE ABOUT GETTING

OUT OF DEBT.

YOU'VE GOT TO MOVE THE

NEEDLE AND GET WITH IT.

AND KNOW THAT MASTERCARD IS

NAMED THAT FOR A REASON.

WE'RE GOING TO GET RID OF

THAT STUFF AND HAVE A

"PLASECTOMY."

AND IN BABY STEP THREE, WE

GO BACK TO THE $1,000, AND

RAISE IT UP TO A FULL FUND.

AND FOUR, START INVESTING

FOUR OUR RETIREMENT.

FIVE IS KIDS' COLLEGE, AND

SIX IS PAY OFF THE HOUSE.

YOU'RE DEBT-FREE, YOUR

RETIREMENT IS DONE, AND NOW

YOU BECOME WEALTHY AND YOU

GIVE LIKE CRAZY.

THIS IS WHEN YOU REALLY TURN

UP THE BURNER ON THE

GIVING.

Pat: THAT IS NIRVANA.

THE BUDDHISTS WOULD LOVE

THAT.

THAT IS PEACE.

HOW LONG WILL IT TAKE TO GET

SOMEBODY OUT OF DEBT?

WELL, IT DEPENDS ON HOW

INTENSE THEY'RE WILLING TO

BE AND HOW PASSIONATE THEY

ARE.

THE MORE HOPEFUL AND

PASSIONATE YOU ARE, THE

DEEPER YOU WILL SACRIFICE.

THERE IS A DIRECT

CORRELATION BETWEEN HOW DEEP

YOU SACRIFICE AND HOW FAST

YOU GET OUT OF DEBT.

THE AVERAGE FAMILY WE'RE

COACHING IS DEBT-FREE IN 18

TO 24 MONTHS, NOT COUNTING

THEIR HOMES, AND THEY'RE

PAYING OFF THEIR HOMES

SOMEWHERE BETWEEN SEVEN TO

10 YEARS.

Pat: DAVID, WHAT IS IT

WE'RE DOING WRONG IN

AMERICA?

YOU HAVE TO KEEP THE KIDS,

I'M SURE, BUT WHAT DO YOU

DO?

I THINK WHAT WE'RE DOING

IS WE'RE NOT PAYING

ATTENTION.

THE BIBLE SAYS, "WHERE THERE

IS NO VISION, THE PEOPLE

PERISH."

AND WHEN YOU LIVE YOUR LIFE

"THANK GOD ITS FRIDAY AND

OH, GOD IT'S MONDAY."

YOU'RE NOT THINKING ABOUT 10

YEARS OR 15 OR 20 YEARS OUT,

AND YOU MAKE REALLY BAD,

IMPULSIVE DECISIONS.

I'M THE SAY WAY.

I CAN, TOO.

BUT IF YOU'LL THINK ABOUT

WHERE IT IS TAKING YOU, AND

PUT A WHOLE NOBELITY ISSUE

OVER YOUR MONEY, MEANING I'M

GOING TO MANAGE MONEY FOR

THE GOOD OF MY FAMILY, TO

CHANGE MY FAMILY TREE, A

GOOD MAN LEAVES AN

INHERITANCE TO HIS

CHILDREN'S CHILDREN.

AND WHEN YOU THINK THAT WAY

YOU MAKE BETTER DECISIONS.

Pat: COLLEGE LOANS,

$1 TRILLION.

STUDENTS ARE IN DEBT.

YOU'VE GOT THE UNIVERSITY OF

PHOENIX, JUST TO NAME ONE.

THEY'VE GOT PEOPLE UP TO

THEIR EYEBALLS IN DEBT, AND

THEY'RE PROMISING THEM THE

END OF THE RAINBOW.

WHAT DO YOU DO WITH PEOPLE?

YOU'VE EVEN GOT AN AD ABOUT

MITT ROMNEY TALKING ABOUT

BORROW MONEY FROM YOUR FOLKS

TO GO GET AN EDUCATION.

WHAT ABOUT THAT?

I THINK IT IS OUT OF

CONTROL.

HONESTLY, THE RESEARCH WE

HAVE DONE, AND I'VE GOT MY

THIRD CHILD IN COLLEGE RIGHT

NOW SO I'VE PERSONALLY

EXPERIENCED IT, IS THAT THE

AVERAGE COLLEGE STUDENT CAN

GO TO THE AVERAGE IN-STATE

SCHOOL, IF THAT'S ALL THEY

CAN AFFORD, AND ACTUALLY PAY

CASH BY WORKING.

I KNOW IT IS A WEIRD IDEA,

AND IT KIND OF SOUNDS LIKE

CHILD ABUSE, BUT WORKING IS

A NEAT THING FOR KIDS TO DO

WHILE THEY'RE IN COLLEGE.

THE AVERAGE TUITION IS ABOUT

$7,000, AND THE DORM ROOM

AND DORM FOOD IS ANOTHER

$7,000, AND BOOKS AND SO

FORTH, SO SOMEWHERE AROUND

$10,000, $15,000, YOU CAN GO

TO SCHOOL.

PART OF THIS IS A LACK OF

PARENTING.

PARENTS NEED TO LOVE THEIR

CHILDREN WELL ENOUGH TO

GUIDE THEM TO A SCHOOL THEY

CAN AFFORD.

Pat: NOT HARVARD AT 70

GRAND A YEAR.

AGAIN, IF YOU CAN AFFORD

IT.

I'M FINE WITH GOING WHEREVER

YOU WANT TO GO.

BUT THE DEFINITION OF AFFORD

IT IS BE ABLE TO AFFORD IT

IN CASH.

Pat: YOU TALK ABOUT

DRIVING THREE CARS FOR

LIFE?

HOW DO YOU GET IT?

THE PROBLEM WITH CARS IS

WE ALL LOVE THEM.

I'M A BOY, AND I HAVE TO

ADMIT WE LOVE CARS.

THE AVERAGE CAR PAYMENT

RIGHT NOW IN AMERICA IS $486

OVER 82 MONTHS.

IF YOU WERE TO INVEST $486

IN A DECENT ROTH-I.R.A.,

YOU'LL HAVE $5.6 MILLION IN

THAT MUTUAL FUND.

I HOPE YOU LIKE THE CAR.

OH, MY GOODNESS, THIS IS

CRAZY.

YOU CANNOT DO THIS.

SO INSTEAD DO WHAT

GRANDMOTHER SAID TO DO, TAKE

THE $486 AND PUT IT IN A

COOKIE JAR.

IN 10 MONTHS, YOU'LL HAVE

$5,000.

I'M FROM TENNESSEE, AND FOR

$5,000, I CAN FIND A PRETTY

GOOD CAR TO GET ME BACK AND

FORTH TO SCHOOL.

THE INTEREST IN THE GROWTH

OF THAT MONEY WILL BUY YOUR

CARS FOR LIFE.

Pat: THAT'S A GOOD

PLAN.

I REMEMBER SEEING A GUY THAT

WORKED FOR LYNNE

BROADCASTING, AND HE SAID I

WANT TO SHOW YOU $1,000 -- I

MEAN A MILLION DOLLAR SUIT

OF FURNITURE.

AND PEOPLE SAID A MILLION

DOLLARS.

AND HE SAID THAT'S THE STOCK

THAT I SOLD IN MY COMPANY TO

BUY THIS STUFF.

IT'S NOW WORTH A MILLION

DOLLARS.

AND THIS IS A MILLION-DOLLAR

LIVING ROOM.

EXACTLY.

WHEN PEOPLE ARE THINKING

SHORT-TERM THEY MAKE BAD

DECISIONS.

Pat: HOW CAN THE

VIEWERS FIND THE BIGGEST

BARGAINS?

WHERE DO THEY LOOK FOR

THEM?

BARGAINS ARE EVERYWHERE.

WE'VE GOT

CRAIGSLIST, eBAY, AND

THERE IS ELECTRONIC

COUPONING.

THE BIG THING IS TO STOP AND

THINK, EVER OTHER COUNTRY IN

THE WORLD, YOU BARGAIN TO

BUY EVERYTHING.

ONLY IN AMERICA DO WE BUY A

LEASED CAR WITH CREDIT CARD

GAS IN IT, AND WE GO FOR A

SALE.

GO IN AND ASK FOR A

BARGAIN.

Pat: KRISTI HAS SOME

QUESTIONS FOR YOU, DAVE.

I DO.

AND I LOVE THIS.

JANE SAYS, "MY HUSBAND AND I

ARE BOTH IN OUR EARLY

50s.

MY HUSBAND THINKS THE

ECONOMY IS ABOUT TO CRASH.

SO HE WANTS TO CASH OUT HIS

401 RETIREMENT ACCOUNT, PAY

THE PENALTY AND USE THE

MONEY TO PAY OFF OUR

MORTGAGE, WHICH IS

APPROXIMATELY $80,000.

IS THAT A GOOD IDEA?"

IF THE ECONOMY CRASHES,

THAT'S A GOOD IDEA.

I'M NOT IN AGREEMENT THAT

THE ECONOMY IS GOING TO

CRASH.

I THINK WE HAVE SERIOUS

CHALLENGES, AND THIS

ELECTION COMING UP IS PART

OF THAT.

THE BIBLE DOES NOT SAY THAT

FEAR IS FRUIT OF THE

DECISION.

IF YOU MAKE DECISIONS BASED

ON FEAR, YOU'RE GOING TO

MAKE BAD DECISIONS.

CASHING YOUR 401K, ABOUT A

40% HIT ON YOUR MONEY TO PAY

OFF YOUR MORTGAGE IS A BAD

IDEA.

QUICK ANSWER, NO.

Kristi: NEXT QUESTION,

MIKE WRITES, "I HAVE ABOUT

$10,000 IN UNSECURED CREDIT

CARD DEBT.

I'M THINKING ABOUT GETTING A

DEAD CONSOLIDATION LOAN.

WHAT DO YOU THINK?"

I THINK YOU CAN'T BORROW

YOUR WAY OUT OF DEBT.

I THINK YOU NEED TO GET ON A

TIGHT BUDGET AND GET AN

EXTRA JOB.

MY GRANDMOTHER USED TO SAY

THERE IS A GREAT WAY TO GET

OUT OF DEBT, IT'S CALLED

WORK.

MARTHA SAYS, "I'M LIVING

PAYCHECK TO PAYCHECK, SO

WHAT'S THE BEST WAY TO BUILD

UP THAT EMERGENCY

CASHFLOW?"

STAY OUT OF THE

RESTAURANTS AND GET YOURSELF

ON A REALLY TIGHT BUDGET

AND, AGAIN, GO BACK TO THE

GARAGE SALE.

CONTINUING TO DO THE SAME

THING OVER AND OVER AGAIN

AND EXPECTING A DIFFERENT

RESULT IS THE DEFINITION OF

INSANITY.

IF YOU DON'T LIKE WHERE YOU

ARE, WITH GREAT FOCUS AND

PASSION, YOU HAVE TO CHANGE

WHAT YOU DO.

SO FAR YOU'VE BEEN SOWING

ONE THING AND IT'S NOT

WORKING, SOW SOMETHING

ELSE.

Pat: LET ME ASK YOU

ABOUT THIS FINANCIAL PEACE

UNIVERSITY.

HOW DO YOU SIGN UP?

THERE ARE ABOUT 5,000,

6,000 CLASSES BEING TAUGHT,

CHEQUE OUR WEBSITE AT

DAVERAMSEY.COM.

Pat: DAVERAMSEY.COM.

YOU'RE TERRIFIC.

COME BACK AGAIN, PLEASE.

THANK YOU, PAT.

IT'S AN HONOR TO BE WITH

YOU.