On occasion, some kind of publisher sends me books to review and read. So far, most of these books have been a little out of my league. They have also been a bit obtuse (financially) for me. However, I got a call a while back from the Penguin Group. They asked if I wanted a copy of The Complete Idiot’s Guide to Getting Out of Debt. The book is by Ken Clark CFP. I said I would love to read this.
I am a big fan of The Complete Idiot series of books. They are usually an excellent introduction to the topic at hand. These books cover a large area of the subject. Hence, you had a good grounding on the topic. I have read many books on High Tech topics. I was curious to see what a Complete Idiot’s Guide to Getting Out of Debt book might be like.
Overall Review: Complete Idiot’s Guide to Getting out of Debt is a Good Read
Amazon Link
The book is what I expected. It provides an excellent general view on the topic of how to get out of debt. For my Canadian readers, it has a more Yankee angle on some specific topics. However, most of the topics are very good no matter which side of the border you live on.
The author takes the time to reassure his reader about being in debt. One of the biggest problems with debt is that a lot of people think it is impossible to get out of it. As a result, they don’t even try. However, Ken Clark CFP wants you to try, and he provides you with some constructive ideas.
More Details
In Part 1, Mr. Clark talks about how debt works, which is a good introduction or refresher for folks who may need some helpful hints about how they got where they are. An important review of the author’s opinion of good and Bad debt, while a little general, is informative. Mr. Clark does point out that Pay Day Loans are “… a ridiculously bad idea…”, which I concur and resonate with. After reviewing the math of compound interest (and how debt grows quickly), Mr Clark talks about Debt Denial and the steps to fight against it (de-nial is not just a river in Egypt), and the sooner you accept your debt and plan on how to get out of it, the happier you will be.
The book runs through the essential steps of getting out of debt:
- Creating a debt reduction plan ( a realistic one that you can stick with)
- Controlling your cash flow (not spending more than you make, in fact spending much less so you have funds to pay back your debt).
- How to make and stick to a budget (the B-word scares a lot of people, but remember a budget is just a plan).
- How your budget can fail, and how to get back on track, if you have a bump in the road.
Plans Can Backfire?
Mr. Clark also covers some getting out of debt ideas that can backfire if you are not careful. I think it's important to point these areas out so that folks don't simply latch onto any ideas thinking there may be risks involved.
There is a section about the other B-Word (Bankruptcy) that is very American, explaining how this procedure works in the U.S., but still interesting to read about how the process works down south.
The book ends with an optimistic and vital section about living after getting out of debt. There is a real danger of reverting to old habits once you have succeeded in getting out of debt. This is much like weight loss plans. Therefore, staying out of debt is an important skill to develop as well. I like the section about the importance of teaching your children good financial skills, so they don't make the same mistakes we made.
My Opinion
Overall, it was a very fun read for me. It served as an excellent refresher on the tools and tactics for debt reduction. It is well written, and the topics flow in good order, and I enjoyed Mr. Clark's attempts at personalizing the issue of debt (with his own experiences and other folks). I would strongly suggest folks read this book if they are in debt and feel like nothing they can do about it. This book will help get them moving forward.
Thanks to Penguin publishing for sending me this informative and helpful book. I would have taken the book out of the library eventually, but I never mind a free book either.
My list of debt commentary articles is quite long, so let's stick with the basics.
- Three Solid Ideas For Your HeLOC is a misdirection title. With interest rates going up, home equity lines of credit are becoming heavier anchors on your financial life.
- Pay Day Loans? Absolutely, positively NO! Go talk to a licensed insolvency professional before you do this.
- Surreal Paragraphs Found in Credit Card Bills, if you carry balances on your credit cards, you are in trouble. Look at their estimate for how long it will take to pay off the debt on minimum payments.
- A Mortgage Changes You, which is very accurate. When you get a mortgage, your life changes, and it will be a major element of your financial decision-making process.
- Make More by Reducing Debt with some elementary (maybe naive) arithmetic.
- Straight Talk on Your Money is not just a good book (and podcast). It explains how debt can get out of control quickly.
- Debt-shaming: Debt is Bad, but You Aren't having a poke at the "influencers" who say my commentaries about Debt being BAD is debt shaming.
- My coup de grace There is No Such Thing as good debt. Debt is a tool, like a chainsaw, and must be respected.
Re: Idiot’s guide to anything.
I suggested to a female friend that she should buy an
Idiot’s guide to Computers, as she was hard to get through to, regarding anything about computers.
Her answer:
What if after reading the book I still cannot understand anything about a computer, then I will be so depressed I wouldn’t want to use a computer again.
I am still accessed on occasion to explain how everything on a computer works, and I believe she is correct about her and the Idiot book.