Financial author David Bach is out with a new book that focuses on those that can’t get rich yet because they’re in debt. Debt Free For Life: The Finish Rich Plan for Financial Freedom is the title and I’ll be focusing on chapter 5 which introduces the DOLP method.
What is the DOLP Method?
Step 1: Figure out how much debt you have. This can be an eye-opening practice for people who haven’t added it up all up before. Bach has worksheets to help you organize the bills, amounts, etc.
Step 2: Complete the DOLP worksheet which is self-explanatory but needed for the next steps.
Step 3: Calculate the DOLP number for each debt. Divide each debt by the minimum monthly payment.
Step 4: Assign a ranking. Rank the debts highest to lowest based on the DOLP number. The debt with the lowest DOLP number is ranked 1.
Step 5: Put the due dates on the calendar. Make sure you put a reminder for several days before the due date for payment. This will keep you from incurring late fees and higher interest rates because of late payments.
Step 6: Pay debt off fast. Pay at least twice the minimum for the highest ranked debt until it’s paid off and then move that strategy to the next debt.
The DOLP plan is very similar to Dave Ramsey’s ideas in The Total Money Makeover: A Proven Plan for Financial Fitness but I don’t think that’s a bad thing because it works.
Maybe Bach’s DOLP plan will resonate with someone while the seven baby steps won’t. I’m going to add this book to my list of recommended personal finance books.
For another take on the same chapter, read the article at Barb Freidberg Personal Finance .
You can buy this and any of the Finish Rich book series at Amazon. However, I will give away a copy to one reader.
Debt Free for Life Giveaway
You can enter the giveaway for this book one or all four ways listed below. For each entry, leave a separate comment.
1. Leave a comment with your tip on paying off debt.
2. Subscribe to Buck$ome Boomer and leave a comment saying if it is via RSS or email.
3. Follow me on twitter and tweet the giveaway.
4. Become a fan of Bucksome Boomer on Facebook.
This giveaway is open to those 18 or older and with an U.S. mailing address.
Entries close on April 6 at 5 p.m. Pacific Time and the winner will be selected via And the Winner Is… plugin. If there is not a response within 48 hours to request for mailing address another winner will be selected. Remember to leave an email address that you’ll be checking.