Video Transcript: How To Get Out Of Debt Fast!

So that's what we're going to talk about. And to do this, we're gonna go back to a story that we read at the beginning of today, which was called the camel trader, you guys remember the camel trader? How did he get themselves into trouble? Getting into debt, right. And eventually, he had an opportunity to escape slavery. But he had to come back with one purpose in mind. And that purpose was to pay off faces, creditors, pay off his debt and get his respect back. Right. 

So there was one key question he was asking himself, he said, Do I have the soul of the slave or the soul of a free man. And he realized that in order to become debt free, he had to take the first step, that first step was making a decision to become financially free, right? Doesn't matter how slow, you move? The point is, if you take that first step, you're already one step closer and right. Once you take that step, you take the second step, you take the third step, I always tell people, if you want to achieve any goal in life, if you advance 1% in the direction of your dreams, guess what? That's one step closer, you are every day, and before you know it, your dream seems very attainable. 

So slaves say, What can I do? I'm a victim, right? They want other people to take care of them. The main thing that you have to realize, nobody's going to come and save you. The government isn't here to help you out. The best hand, like Peter, Daniel says, that's going to come to your aid, guess where it is? Right here at the end of your arm. Right, you have to pick yourself up. You have to earn your own self respect. You have to be responsible for yourself. Now, before you borrow money, there's a couple of things you should ask yourself. 

First of all, the cost of borrow? Is it lower than the economic benefit I'm going to get from borrowing this money? Or putting it another way? Am I going to make a profit by borrowing this money? Because the answer is yes. Then maybe it's okay to borrow? Because the answer is no, then definitely don't borrow. For example, if you go, and you spend $100, to go entertain yourself with the credit card, what's the economic benefit to doing? There's nothing so don't do it. Don't use a credit card for that. 

Second, you have to have a guaranteed way to repay the money if something goes wrong. Why do banks lend on real estate? Because it's secure in case you can't make the payments, guess what they're gonna do? They're gonna take back the property and pay themselves back the loan that they lent you right now, or they're gonna lend you 100%? Typically not they're gonna ask you to put down some down payment. 

The next question you gotta ask yourself is, do my spouse and I have unity about taking on this debt? Before you take on a debt, make sure you consult with your wife or your husband. And make sure you guys are both on the same step. Same, same thing. Mind. The third question you gotta ask yourself is, do I have spiritual peace to take on this debt? If you're feeling uneasy about it, then don't do it. It's probably something that your spirit is trying to tell you. And lastly, ask yourself what personal goals or values in my meeting with this debt cannot be met in any other way? Is taking on debt really the only way you can solve this problem? So those are some of the questions you got to ask yourself before you get into debt. 

Now there's what I call four bad types of debt. The first one is pretty easy. It's a credit card. Usually credit cards have the highest rate of interest and are very tough to pay off. The next one is of the consumer debt. For example, when you go to a furniture store or car store, they usually lend you money for that. The third kind of bad debt is a mortgage on your home. Right? A lot of people tell you don't pay off your mortgage because you get a tax break. Well We'll talk about that in a minute. But no, yes, you should pay off your mortgage. 

And number four is investment opportunity. What does that mean? Means that some friend is going to approach and say, hey, you know, I have this great idea to great opportunity, I think you should invest in it. Well, there's a couple things you should do before you invest in your friends, first idea. First of all, ask him to explain it to you. And if you can explain to your wife or your husband, and they can understand that, that's great. If you can't explain to them how your opportunity makes money, or they don't agree with it, then don't do it. A lot of people lose money because they get all caught up, they talk to some fast talker, talk them out of their money. 

Now there's three types of debt that I put under quotes, good debt, I don't know there really isn't such thing as good debt. But I guess there could be debt that at times, could potentially benefit you, for example, to start a business. Sometimes it's okay to borrow money from a bank or from some other person. But you have to make sure that you really know what you're doing, and that you have a plan to pay it off very quickly. Now, there's usually two types of debt that you can take on in a business, there's what's called a term debt, which means they give you a fixed number of years, and a fixed interest rate. in what's called a line of credit and the line of credit, they can basically make it more flexible, but the interest rate might also go up over time. 

There's also what's called investment debt, some people like to borrow money to go invest. That can be dangerous, it can go both ways. If you make money, it can amplify your gains. If you lose money, it can multiply your losses. You have to be careful with that. In real estate, a lot of people like to invest in real estate, the same with OPM, right other people's money. But what I would tell you is, I'm an expert in the housing market, and I saw close to 10 million people lose a house in the last real estate downturn, because they were messing around with other people's money. 

So just because you can borrow money doesn't necessarily mean that you should. Now one thing I learned from Peter Daniels is he said, the good policy, the good policy is get out of debt, and stay out. Right? He says, The wicked borrow is in the pain out again. But the righteous shows mercy. A lot of people you've probably run into some people like this, they ask you for money, they say I promise, I'm going to give it back to you, and yet they never pay you back. 

The Bible says that those people lack integrity, in the sense they're dishonest, right? They're crooks. If you owe people money, one of the most courageous things you can do is go face up to that person and say, You know what, I'm sorry, I haven't paid you back. I'm going to make a plan. Even if I have to pay you $1 a month, whatever it takes. But I'm gonna start to lower that debt. A lot of people make excuses. But in reality is that they don't really have willingness in their heart to pay the money back. 

But you have to pay back what you borrowed. Compound Interest what is compound interest? Well, compound is something that grows over time. Anybody recognize so this man is the most intelligent man in recent times? Right? And what did ang Stein say about compound interest? He said compound interest is the greatest mathematical discoveries of our time. 

This other guy, maybe you haven't heard of him, Mayer Rothschild. He was part of the family that control all the World Banks. What he's saying compound interest is the eighth wonder of the world. Well, no kidding. That's how banks make all of their money. Right? Select what this guy says, Don't let interest work against you. If you do, there's no chance of success in life as far as money is concerned. And I also like what the Motley Fool says he says those who understand compound interest are going to collect it. 

Those who don't, are going to be the ones who are doomed to pay it. All right, so now I'm going to show you exactly how banks make their money and how you can do to turn this around once you understand this against them. And I'm going to explain this to you here with this little drawing. Okay, so right here, we have $100,000 debt. Right? And essentially, let's say that this debt is for 30 years it's to purchase a house and let's say they gave you a 7% interest rate 7% into 12 months is a point five 8% interest rates, which doesn't sound like a lot of money. And usually the banks are going to tell you here's your minimum payments. You got to pay in this case they said you got to pay A $665 a month. 

So here's how the math works $100,000 times point five 8% A month is how much money in one month? 583. Right. So 100,000 plus 583 is how much? 105 83? Okay, you make your minimum payment 665. So what's your debt now after one month 99 918. So of that 583 of that 665, how much went to the bank 583 This is their profit, how much went to pay down your loan at 197. So of your 665 8197 Basically, that's how much your debt went down by, and the bank made a profit of 583. So after one month of this debt, you now owe 9990. Okay, let's repeat this process the next month, you start off with a debt of 99 918, you make your minimum payments of 665 Of this amount, they're going to charge you this amount times point five 8%, which is 582. Point 86. After you make your minimum payment, now your debt goes down to how much goes down by 8245. And you just paid the bank another $582.86 of profit. So after two months, you've paid down the whopping sum of $164 on your $100,000 debt. If you keep going down this process after 12 months, how much money have you paid, you feed almost $7,000. 

And know that 7000 3000, another 8000 7000 went to the bank as a profit to 1000 went down to your debt. So after one year, you just dropped your debt from 100,000 to 99,000. So is it any surprise why banks are the most profitable businesses in the world and why people are always stuck in debt. So we're gonna get back to this in just a minute. But if you continue this process, year, after year, after year, you're gonna end up paying about two to three times the amount that you borrowed, that $100,000 home is really going to cost you $250,000 When you're all said and done paying for it. 

So this is what your debt looks like. Your debt goes down really slowly, over the first five years, first 10 years for 15 years. After 15 years, you still owe 75,000. So you've only paid down 25%, even though you've already spent 15 years. Now what do most people typically do some time after a year, five or 10 still buy another house, right? So they take on a bigger debt, and they start all over again. So they're always in debt. So this chart shows you how much we paid down towards the principal. So the true cost of a mortgage is what it says. It's not just what you borrowed. 

But it's also all the amount of interest that you're going to shift from yourself to the bank. That means that about two thirds of the amount that you pay is going to end up going to the bank as profit as interest. And that's the amount of money that we want to put into back into your pocket. So as this says, you know, if you borrow 250,000, with a $200,000 mortgage, you might end up paying close to three times that amount of money, that's half a million dollars in interest, that you have to earn a lot of work and that's a lot of money going to banks. I would rather let you figure out how to become your own bank tomorrow. In better put all that money back into your pocket. 

Now, some people say No, you shouldn't pay off your mortgage. Because for every dollar you pay in interest, the government's gonna give you a tax break maybe 20 cents, in this case, 28 cents. Well, that's like saying if you give $1 to the bank, the government's gonna give you a quarter. You know what I'd rather give a quarter to the government and keep the dollars from myself. All right, when it comes to credit cards, a lot of people make a mistake and they pay the minimum payments. When you make the minimum payments on all these credit cards, guess what, they're never gonna go away. Right? It's kind of like putting yourself into prison, except that you're the one that has the key but you're not using it to get out. 

The proper way to use a credit card is to go ahead and pay it off completely at the end of every month before the due date. If you reach a point where you can't pay off your credit card completely in the first thing you should do is grab your scissors and cut it up and stop using it because otherwise it's gonna start working against you. So the key to financial freedom is to basically become debt free, you have to turn this equation around on against the banks. Otherwise, you're not going to be able to make it happen. You have to make it a priority to become debt free. And you have to make it a top priority if you want to have a success at short cutting the banks. 

So I'm going to give you a formula for how to get out of debt, which comes from Ron blue. Stop number one, stop going into debt. In other words, don't keep charging that credit card, don't keep acquiring new things that are going to get you more into this. And number two, start a repayment plan. I know it sounds simple. But it really isn't that complicated, except that a lot of people they're so used to their habit of getting into debt, that they continuously keep getting more and more themselves into a deeper hole. 

So your goal has to be to eliminate all of the debts and begin building towards a stable economic future. And you do this by wasting, not wasting money on interest and not wasting money on things that you don't need. So here's kind of the goal of where we're going to go with this. Even if you're deep in debt, and you have a negative net worth, you have to set a goal to get out, you have to have the discipline to start paying the money back. 

And you're going to start to see results until at last you can celebrate financial freedom. It's going to take a little bit of time, but once you see the progress, you're going to see how this starts to snowball. And this in turn is going to motivate you. Now what we're gonna do is we're going to read how this guy dabbas here got out of debt when he was when he came back from Syria. From this we're going to read the next lesson, which is the amicus find in here to clean tablets from Babylon

All right. Can you help us read well, I'll tell you what, I read the intro and then you read the tablets. Just to set this up. Basically the you guys know Babylon existed many, many years ago, 1000s of years ago. Well, they found these clay tablets. These guys used to write their wisdom on there. And some of these tablets came to some professors of archaeology. And when they found them, they sent them to this one guy who could interpret what they said. So here's what I'm gonna read to you the introduction, says My dear professor, the five clay tablets from your recent excavation in the ruins of Babylon arrived on the same boat with your letter have been fascinated to no end and have spent many pleasant hours translating the roots inscriptions. I should have answered your letter at once, but delayed until I could complete the translations which are attached. 

The tablets arrive without damage thanks to your careful use of preservatives and excellent packaging. You will be astonished as we were in the laboratory, it's a story they relate. One expects the dim and distant past to speak of romance and adventure you know Arabian Nights sort of thing. When instead it discloses a problem of a person that was here to pay off his debts. One realizes that the conditions in this whole world have not changed as much in 5000 years as one might expect it's odd you know Professor but these old inscriptions rather rage me as a student saying in a college professor I'm supposed to be a thinking man being possessing of a working knowledge on most subjects. 

In here comes his old chap out of dust covered ruins of Babylon to offer a way I had never heard of to pay off my debts and at the same time required gold to jingle in my wallet pleasant thought I say an interesting to prove whether it will work as well nowadays as it did in Alta Avalon. Mrs. Shrewsbury nine or myself are planning to try out this plan upon our own affairs which can be much improved wishing to you the best of luck in your worthy undertaking in a waiting eagerly upon another opportunity to assist Yours truly, Alfred Shures very Department of Archaeology so now we're gonna read what's inside these tablets.

All right, the moon become full. I debit star who am but recently returned from slavery in Syria with the determination to pay my many debts and become a man or me and worthy of respect in my native city of Babylon. Do here engrave upon the clay, a permanent record of my affairs to guide and assists me in carrying through my heart. On the wise advice with a good friend, make Don, the gold lender, I am determined to follow an exact plan that would, that he do say, will lead any harmful man out of debt into means and self respect. 

The plan includes three purposes, which are my hope and desire. First the plan do it provide for my future prosperity, therefore 1/10 of all earn should be set aside at my own key from Matrox mirtrons Speak wisely with when he says the man who keep in his Perth birth, gold and silver that he need not spend is good to his family and law to his king. The man who has bought a few copper in his purse, is indifferent to his family and indifferent to his game. But the man who has nothing in his purse is unkind to his family and discord to his king, for his own heart is bitter. Therefore, the man who wish to achieve must have point that he may keep his jiggle in his pocket, in his purse that he have in his heart love for his family and Lord, loyalty to a scheme. 

Second, the plan do it provide that, once your support the my good wife, who have returned to me with loyalty from the house of her father, for mate, mate, do I say that to take good care of a faithful wife, put it self respect into our heart, into the heart of a man and add his strength and determination to His purpose. Therefore, seven tenths of all our Earth show me seven tenths of all iron shall be used to provide a home clothing close to where food to eat would have been extra to spend that are live be not lacking in pleasure and enjoyment. 

But he do further in enjoying the greatest care that we spend not greater than seven tenths of what I've earned for the worthy purposes therefore loathe the success of the plan I must live upon this portion and never use more nor by what I may not pay for that portion Okay, so if we review what he said so far number one he says he's going to pay himself what part first or second? First? How much 10% Second he's going to live with a much for him and his family 70% Okay. Let's keep reading tablet number 230 The plan do it provides that out of my earnings my debt shall be paying therefore each time the moon is cool to 10th of all I have earned shall be divided honorably and fairly among those who have trusted me into whom I am in debt in due time where all my indebtedness be surely paid. 

Therefore do I hear in grades the name of every man whom I am in debt to honor our mount honest amount or my debt should we read that? Just a few okay, we're proud the call we were to silver six copper jocks on your couch maker, one silver, Mr. My friend three silver and one copper van car my friend for civil seven copper as my friend I want silver, three copper and therefore go down and say from here on just entertainment cannot be deciphered.

So what did he do? He created a list. He's going to start paying his debt with the or 20%. And the first thing that he did is he created a list what did he do? He put the name right, the people he owes and the dollar amount didn't say there but the interest rates right? And he just made a list 1234 And on and on you have to kind of face the facts you have to become face reality right? What are we looking at how much money do I really owe? Claim Number three, tablet number three.

To these creditors, do I owe in total 119 pieces of silver 141 pieces of copper, and cars I did get all these songs and saw no way to repay. And my father did permit my wife to return to our father and did leave my native city and seek easy wealth elsewhere, only to find disaster and to see myself sewn into a deep denigration of slavery. 

Now that may Dawn doulas show me how I can repay my debts and small amounts of my earning, do I realize the greatest extent of my filing is running away from the results of my extravagance. Therefore, I have visited my creditors and explained to them that I have no resources which to pay resources which to pay itself my ability to an AI that I intend to apply to tempo all I earn upon my deafness evenly and honestly, this much can I pay but no more. 

Therefore, if they be patient, in time obligation will be paid in full Asmar whom I thought were my best friends. We bow me bitterly and I left him in humiliation better. The farmer pleased that I pay him first as he did his badly needed help. Alcohol the house owner was indeed agreeable, and insisted that he would bake me trouble unless I did soon so in full with him.

Okay, so what are we seeing here? That once he made his list and once he went to talk to all these people, were they all really happy to see him? Really, they were pretty upset, right? And they were taking different attitudes but they were all saying Hey, pay me right away. But he stood his ground and he said, Sorry, I got a plan and I'm going to stick with the plan if you want to be part of the plan. That's great. And if you don't, I can't really do anything more. Right? 

So he was gonna pay them 20% of his money All right, let's see what else all the risks willingly accept my proposal therefore am I'm more determined than ever to carry. being convinced that it is easy, easier to pay one just debt than to avoid them. Even though I can cannot meet the needs and demands of a few of my creditors I will deal impartially with what he's saying is you have to be fair to all these times right. All right, template number four.

Again, the moonshine. I have worked hard with all with a free mind. My good wife has supported my intention to pay my credit. Because of our wise determined nation I have our earning I have earned during the past. Buying camels of sound when and good legs for net net tore the summer of 19 pieces of silver. This I have divided according to the plain one tins have I set aside to keep on as my own 710 Five divided with a good wife to pay our for our living and to have our divider mama Crozier as evenly as to be done in copper.

So after one month, the first month he says plan right after one month of working. What you're doing is following the plan paying themselves 10% Living with 70% and paying down 20% amongst all his creditors right here If I did not see at my brother loved it with his wife by Rick was so pleased, he would kiss my hand accurate alone was grouchy, and said I must pay faster. To which I replied that if I were if I were permitted to be well fed, and not worry, that alone would enable me to pay faster all the others thanked me and spoke well of my effort. 

Therefore at the end of the one my deafness is reduced by almost four pieces of silver and I possess almost two pieces of silver besides upon which no man has claimed my heart is lighter than it has been for a long time. So what's starting to happen even after just one month, he's already started knocking down as his savings are going up. So what's happening to his self respect and his peace of mind is increasing his team's improving right so he's feeling better about himself All right. Next month what happened again the moon shines I have worked hard but with course a few candles have been able to buy only 11 pieces of silver have iron never left my good wife and I stood by the plan even though we had no new ringlets or even little herbs. 

Again, I paid ourselves 1/10 of the 11 pieces while we lived upon seven 710 I was surprised when at my command come commended my payment even though small, so did my jet flew into a rage, but when I told to give back his portion, he did not wish he became reconciled, and the others as well before were contained. So what's starting to happen even though he paid these guys less, right, he stuck to the plan, he had to shrink less than his own personal consumption.

 And these creditors are now starting to change their attitude towards them, right? Not all of them, but many of them are now pretty happy that they're seeing that they're getting the loan paid back. Even this last guy even though he didn't want the money at the end he's like okay, I'll take it let's see what happened the next month again the moonshine full and I'm greatly rejoice. I intercepted a fine heard of cameras involved many soft ones therefore, my earnings was 22 pieces of silver. This my wife and myself have bought much needed sandals and brainless also we have done well on meat and more than eight pieces of civil we have paid to our credit. Even l. L. did not protest. 

All right, so now he's starting to accelerate his results right. All right. So it says here Great is the plan for elitist us out of debt and gives us wealth, which is ours to keep three times the moon has been full since I last part of the pond display. Each time I paid myself 1/10 of all I earned each time my good wife and I have lived upon seven tenths even though at times it was difficult. Each time have I paid to my creditors to tempt so he's been going at this for several months. He says in my purse I now have 21 pieces of silver that are mined. It is marked my head to stand straight upon my shoulders and make me proud to walk among my friends. My wife kept well our home and is becoming the ground we are so happy to live together. The planners of untold value has not made an honorable man or an ex slave, marine tablet fine.

Again, the moonshine full and I remember that it was a long since I carried upon the claim 12 moons in true have come and gone. But this day, I will not neglect my record because upon this day, I have paid the last of my debt. This is the day upon which my good why am I thankful? am I thankful self celebrate with great feasting. On determination has been achieved. Many things occur upon my final visit to my of creditors, that I shall long remember at my bank my forgiveness for his unkind words and said that I was one of all others he most desire for friends. Oh, Alcott is not so bad after four he said that were once a piece of soft clay to be pressed and molded by any hand that touched it. 

But now, that piece of brown capable of holding image is dissolved needs silver or gold at anytime come to me. Nor is he the only one who are who hold me in high regard. Many others speak differently. To me, my good wife looked upon me with a light in her eyes, and in those makes a man have a competence. there anything better than being debt free and having your wife happy? Not too many things. That's a good life. So he says yet it is the plan that had made my success. It has enabled me to pay all my debts into jingle, both gold and silver in my purse. 

I do commend that to all who wish to get ahead for truly if it will enable an ex slave to pay his debts and have gold in his purse or not eat any man to find independence, nor a mind myself finished with it for I am convinced that if I follow it further, it will make me rich among men. What's gonna happen now that he's debt free with that 20%? goes into savings. Right? So now how much is he going to be paying themselves? 30%. That's awesome. Okay, so now we're going to get down to the nitty gritty with a specific example, how exactly do we get out of debt in a quick amount of time, we just finished reading the story of the man that was here who was in Syria and in Babylon trying to get out of debt. And what was his formula? 

Number one, he was going to pay himself 10%. Number two, he was going to live with 70%. And number three, he was going to start paying 20% towards his debt. Right. So the first thing that we see is that he needed a plan to start getting out of debt. So the plan is going to work. If you work the plan, right, you have to follow it, there might be times when it's might be a sacrifice to make things happen. But if you're committed to becoming financially free, and if you can see what's on the other side of that sacrifice, you're gonna realize that it's worth it. 

Especially right now when I show you how many 1000s and 1000s of dollars you can save by committing to this plan. I don't see how you wouldn't commit to it. But anyway, you're gonna pay one price for the other. So you're gonna pay the price of financial freedom, are you going to pay the price of maintaining yourself a financial slave to the banks, it really is your choice at the end of the day. So let's go through this plan. 

Number one, you have to learn how to pay off your debt before you try to save or invest a lot of fresh should really say invest a lot of people, they try to save money into their 401 k into their IRA. They're trying to put money away into all these things. At the same time they got a tons of debt. Well, you guys have ever tried to use a magnifying glass when you were a kid to turn something on fire. What's the secret to doing that? Focus, right, that one word focus, you got to focus all your efforts into one thing. 

If you spread it out, and if you spread your money out, it's not going to do anything for you. I've seen a lot of people who try to pay off all their debts at the same time. They send this one extra 50 Barb's and extra $100 and extra $75. On each step, they're throwing a little bit of money around sprinkling money around, that's a shotgun approach. That's not going to work. We need to be laser focused, targeted as far as paying off our debts. 

So the way we do this is I said before we create a list of all our debts, and we're going to put them in a specific order. Generally, we're going to start off with the ones that either have the highest, the lowest balance first or the ones with the highest interest but generally I'm going to end up going for the ones that have the smallest balance first Why do you think that is? paid off and apply it to the next one, right? Which 1am I going to pay off fast as the one with the small balance or what the huge Balance. Probably the one with the small balance may make some exceptions when I sit down with clients and I go through this, but right now we're going to assume that we're going to go with the one with the smallest balance. 

Once we pay that one off, we're going to take that cash flow and roll it over to the second one, once we pay the second one off, we're going to take that cash flow, roll it over to the third one. So right now we're going to use the power of focus, right? We're going to make minimum payments, on all the other debts, no matter how tempting it is to send them and let's a little bit extra money, we're going to collect all that extra money, we're going to just focus it on one debt. Once you've paid that one off, then you're gonna focus on the next one. And once that one is off, you focus on the next one, and so forth. With sufficient determination, I've seen many people who can become debt free in seven years or less. 

This is basically called the snowball effect, right? So, think of your financial life like this bucket. This bucket has a lot of holes, right? How much water can it hold? Not too much. Why? Because all that water is getting dispersed into many different directions. What are those holes? Those holes are your investments, your IRA, all your debts, all your term life insurance, all these things, right? All these pants were saying send me money? For we're going to learn to tell them no, because I'm going to focus on paying off one debt. Think about it like this, those red holes, that's where your money's going right. 

Now, where's your net worth? Where's your water level? Really low? So what do we got to do? We got to start plugging up those holes. And as we plug up the holes, what's going to happen to the water level, gonna start to go up. At the end of the day, when we finish plugging up all the holes, our water level is going to start going up even faster, right? Anybody ever seen this movie The Wizard of Oz? What's the end of the story? How do we kill the big bad witch? You throw water on it, right? That water is what's going to kill that which are in this case, the which is our debts? Right? So we're going through that water, I'm going to show you how some of this example I showed you of that debt before. 

How for every $665 Only a very little was going into to help us out. Okay. So I'm going to show you with the same example with this spreadsheet, how we can make this work on our behalf. And I'm just going to zoom in this to this just a little bit more. Actually, that's fine. Okay, so let's assume that we have this debt. And to me just compare one little thing here real quick. On $100,000 in debt 665 30. Okay, so let me just change one thing here. So that's correct. So this is $100,000 of debt. Okay, here we go. All right. So if we pay the debt exactly as it was planned, how much interest are we going to end up paying? By the time we're done? 

The time we're done. We're gonna end up paying 100 and 100,000, back to the bank, and $139,500 of interest to the bank. So that's a total payment of 239 509. That's a lot of money if you asked me. Now, if I showed you an investment, where you could make a lot of money without taking any risk, would you be interested? Okay, so check this out. Let's assume you had $100. Okay. And you paid it on top of your debt. So in other words, instead of paying 665, which is the minimum payment, let's say you paid an extra $100. What if I told you that that $100 essentially just saved you $700? Would that be of interest to you? Have you ever seen an investment where $1 makes $7? 

So if we look at our chart here with the debt, you may not see it here. But let's zoom in back here in our calculations, and let's look a little closer. When did we pay off the debt? We paid it off two months earlier than anticipated. meaning. So we instead of paying it off at 360 months, we paid it off here in the 359 plan. So what does that tell us? It tells us that if we paid an extra $100, we're gonna save $700. And we're gonna save a month of payment. So if it's good for one month, why don't we do it for a whole year? Right. 

So, here we are, after 12 months, how much are we paid? $200? Extra, right? How much have we saved? $7,800. Now let's look at how much time did we save? We finished paying off his debt. What a year early. Do you think if I could save you almost $1,000, you can come up with an extra 100 bucks a month? And if that makes you your mortgage one year, finish one year sooner? Okay, well, what if we keep going? And we do it for a second year and a third year? So let's do that and see what happens. So we keep going. We keep putting in $100 every month.

Let's see what happens. How much faster can we pay off his debt? We got to focus on this balance. How much do we still own this mortgage? 10 years have gone by 12 years, 13 years? I mean, that's a long time. But look at what's happening to our debt balance. It's going down. And now we just got to the end. What year are we in? Year 20? In a few months. So what did we save? We save almost 10 years. And we saved $50,000 that you will never have to pay to the bank. 

So if you look at this chart, instead of the debt going all the way out here. We just saved almost 10 years, and we save $50,000 What do you think you could do with 10 years of your time and $50,000? You do something nice, right? You can start putting that towards your retirement. So that's only with $100? Well, if this works at the $100 What do you think would happen if we did $200 $200 is basically going to turn this into it's just me sure picked it up everywhere. $200 is going to save us $72,000. And it's going to get us to the end of this debt even faster, instead of spending 20 years paying it off. Now we're just going to spend 16 years, so just save this 14 years and $72,000. 

So how much money do people get back typically on their tax returns? Some people get back a few 1000 bucks, right? Let's say at the end of every year, let's say you got back I don't know $1,000 Even if it was just $1,000 $1,000 in each other month we're going to stay with with the $200. So sorry, let me undo. So let's just do what we just did. Sorry. Okay, so let's do this again. So at the end of every year, let's just pretend we're going to do $1,000 From our tax return. Let's see what that does for us.  With this spreadsheet, you can really start to model out any kind of scenario that you can think about. It's really up to you what you can do with it. But basically, I've used this to help people get out of debt in a very short period of time. We're almost there.

So there we are, basically in about less than 13 years, 14 years, we're debt free. So as you see, the more money that you can put towards your debt, the more money that you're saving, in this particular case, for saving $83,000, and we're saving 16 years of time. So imagine what you could do with more and more money in your pocket, and more and more time. So let's go back to our conversation here.

So what have we done? What have we learned, basically, that if you make an extra payment on just one debt, and here it showed the biggest debt, which is the mortgage, but when you do it towards credit cards, you can knock out credit cards within a few months, I'm going to show you another example here to prove that point. 

But the point here is that you can really get out of debt way, way faster than with most other things you can do. Most people are dabbling in the market, trying to make an extra dollar here, here, you can make a huge return, you're not taking any risk whatsoever. Here's an example of a personalized plan. And I'm going to show you one from real life, how it works. But basically, what we show here is that what we do is we line up the debts for people. And then for example, this one, we were able to pay it off in two months. 

Two months later, we paid off a second debt. Couple months later, we paid off the third debt, and so forth. It's just kind of like bowling pins, we just knocked them down like dominoes, we knock down one after another after another. If you'd like to book an appointment with us, so that we can go through your financial situation, it's pretty simple. You have to bring us a list of all your debts, and all your assets. So we can help you create a personalized plan. Most clients that we've sat down with are able to pay off all of their credit cards within one to two years. Most people can pay off their cars within two to three years, and most people can pay off their houses within five to seven years. 

The point is that most people can be 100% debt free and never have to get back into debt. In sometimes seven to 10 years or less. That's of any interest to you, here's my contact information, make sure you write it down. You know, so we can book an appointment to help you do this. I believe that it's really worth your time to do this, because you're gonna save 1000s and 1000s and 1000s of dollars, believe me, and you want to put those dollars to work for you down the road. So if you call this number, you send an email here, my assistant will get back to you. And we can basically book an appointment to help you look at your death situation and how we can help you up.

There's a small fee involved, but it's really nothing that you're not going to get back 100 times over through the amount of time and interest that you're going to save. Okay, one last thing before we show you the example of how we help somebody get out of debt, you really have to keep watching your credit score. This is how a lot of the banks qualify you. And when you get out of school, nobody's ever going to ask you about your report card, what are they going to ask you about your credit score, right, so it's good to have a good credit score. It's also a good idea not to cosign for other people, sometimes people who have a bad credit score, they need somebody else to help sign for them. 

To think about it, if they have a bad credit score, there's probably a reason why they have a bad credit score. So what's going to happen if you take on their debt, you sign and you become responsible, and they don't pay, guess who's going to end up paying for their thing, their car, or their whatever their furniture you are. And so the Bible says, just don't do it. If you don't have an account with creditkarma.com, we recommend that you get one that shows you what your credit score is for free. We also recommend that you get us an account with mint.com mint.com is something that helps track all your finances. So those are two good websites to keep track of. And I really recommend them because they're free. 

They don't cost anything. So the conclusion of this seminar we're getting to the conclusion is make a decision make a determination make a commitment to become debt free. I really think that it's worth a peace of mind. I really think that it's worth securing your financial future. And I really think it's worth you enjoying that freedom so that you can And then spend your time more productively earning wealth for the kingdom of God and for your family. So, hopefully the lessons that we've taught you have been helpful in terms of understanding the basic principles of how you do it. This class is meant to be practical, so that anybody can basically put it to work in their own life. But if you still need help, you know, call our office and we'll be happy to help you. Our goal is to help. Like I said, a million people become debt free in the next 10 years. 

So we really hope that you'll be one of our success stories. And we'd love to help you and your family get there and, you know, reach your financial freedom. So just to review of what's what are the next steps that you need to take? First, you need to learn how to live within your means spend less than what you earn, you have to learn how to pay yourself, First, open up a separate bank account and put at least 10% into it. Tomorrow, we're going to show you what to do with that 10% If you'd like to become your own bank, but for now, just start that habit, put that money away, don't touch it, don't spend it with a savings, we're going to show you how to attack the first smallest debt that you have. 

And in a short period of time, you're going to become debt free from that one, then you're going to start rolling over the cash flow to the second one, I'm gonna show you an example right now. Then, once you've finished paying off the first debt, what's going to happen is you're going to basically start the cycle of freedom working for you, you're going to start the snowball effect. Right, then we'd like to ask you to join the financial freedom alumni group, so that you can share your success with other people and give us your testimonial. And other people are going to give you feedback and they're going to support you through your debt freedom process. 

Tomorrow, like I said, we're going to show you how to become your own bank, which helps you both protect your family and helps you get out of debt using the same amount of money. The more you pay off your debts, the more that you're going to see an increase in your level of motivation, the more that you're going to see an increase in your cash flow. Learn to invest in yourself. Don't be afraid to invest in your education and your financial education, and work to expand your income, learn how to make more money, and learn how to make money work for you.

 As you do this, and you start to see an acceleration in this process, you're going to start to see also an improvement in your standard of life. And this is what true prosperity is really all about. We have a group on Facebook called financial freedom and Success Institute alumni, we'd really love to have you apply to join, it's free. If you just have seen this video you've participated send us a request and we'll add you to that group. It's basically just to prove the father of people taking the seminar in the past and who definitely would love to we love to stay in touch with you. 

We send out announcements about future events and future seminars that we'll keep doing. Lastly, we'd like to ask you to give us a review on Facebook if you've seen a seminar and you really liked it you know, tell other people about it invite your friends to watch it here at Christian leaders Institute they're going to have a copy available for you to watch the review of or the preview or review if you haven't seen it and replay I'm sorry. So before we go on to the question and answer session, I just like to show you a quick example of somebody who we sat down with recently we were able to help them get out of debt

Okay, here we go. So this one was a couple was a couple and I hope you can see it here and try to zoom this in a little bit. Okay, this one's in Spanish, so I apologize about that. But I think you'll get the gist of it. So this is a couple so basically the husband made $200 a month in his regular salary. And the wife made $748 a month. They had a second job a second income and he makes an extra 1179 a month. She makes 194 a month. 

So in total, they make about $3,300 a month. This is where their their expenses are every single month. Rent, they pay 333 cell phone $55 car insurance $233 medical insurance $140 utilities $163 Food $166 parking, you know going to the nail shop water, Spotify, gasoline function went to other stuff Basically, their total expenses per month are 16 $1,600. Plus they also have several debts, which we'll talk about in a minute. Let's look at their debt situation. Here's their debt situation. So they've got $2,600, they own a car at 4% interest. And this is a minimum payment. It's basically, let's see here. 

So they owe a car they gotten missed by credit card for $3,000. At 26%. They got this other Citi card $6,000 at 40%, interest rate, Capital One $6,000 at 24% interest rate, this other Banamex card $4,000.20 6% interest rate, JC Penney $3,000 at 27%, interest rate and so forth. All together, they had $27,000 in debt. And they were making minimum payments of $1,355 a month, which is a very large percentage, almost over a third of their money was going to make minimum payments on the interest on these debts. So what we did with them, as he said, Okay, so you guys make about $3,300 a year, you're spending $1,600 and living expenses, you spending $1,300. On basically on debt repayments. 

So let's see how much that is. They're making 40% of their income was going towards debt. That's huge. But they were able to save about $387 a month. So I said to them, look, take $300, which is roughly your 10%. And you're going to put a label, I've labeled it blue, because I said, when you look at their assets, we made a list of all their assets. We have it here, right. So they have their car, their checking account, here's their savings. So I said to them, $5,300 here, every month, once the money is in there, what we're gonna do is we're going to line up these cards in such a way that we're going to attack one at a time, we determined that it was best to pay this one off. 

Now, you might say why that one, well, in part because their balance was pretty low. But what I also looked at was that their minimum payment was pretty high. So my rationale was, hey, you know what, we got these many months to pay this off. We got eight months to pay this one. So why not go after this one. Because once we pay that off in eight months, we're gonna get $335 extra on top of the $300 to start attacking the other debts. Right. 

So we lined we focused our efforts on that debt. And what we did was we created a timeline right here. So we said, okay, month one, which is me, you're going to take your first car, your first car payment, where you owe 2675. Right, you're going to make your minimum payment of 334. But we're going to add that $300 savings to it. So at the end of month one, your balance is going to drop from 2675 to $2,000. At the end of month two, you're going to make your minimum payment plus a $300 savings, your dead is going to drop to 1421. At the end of month three, you're going to make your minimum payments plus $300. Now you're gonna have a 791. 

Basically, by the end of month five, they became debt free instead of eight months, we shrunk that card debt became debt free in five months. This month, if you notice, they didn't apply that $300 extra payment that didn't even have to send the full minimum payment. So what did we do, we took that $300 plus the extra month that the still had leftover, and we sent it over to the next step, which was this credit card where they used to owe $3,000. So now that month, the minimum payment for this one was 151 50 Plus what was leftover from the other debt, they put the drop to 2155. 

The next month, we applied the $300 that we were saving plus the 334 that was coming from the minimum payment last month plus the minimum payment of 150 here so in how many months that we knocked out that debt 123. So in three more months, how many debts have a paid off To originally, that debt was supposed to be sticking around for 28 months. So we shrunk that debt from 28 months to eight months. So we basically saved them 20 months worth of time. The third debt, they started owing 6000 on that one where they had a 40% interest rate. 

So what that did, we then took the savings, the $300 savings plus the 335, minimum payments was 150, minimum payment, plus the 291 that they were already sending in. So we paid that debt off in 123456 months. So, we already knocked out three debts. Right, then we applied that money, which was 1075, to the next step. So we got rid of that one and 1234 months, then we attack the next step, we got rid of that one and 123 months, then we attack the next step that when we paid off in one month. So basically, in a matter of essentially two years, less than two years, we were able to pay off all of their credit cards. 

These guys didn't own a home, but we've worked with people. So basically became debt free from other credit cards in two months. And now guess what's going to happen with that $1,300 that they were throwing away? This minimum payments, right? So what is going to happen with this $1,300 plus a $300 of savings? 1655? Where do you think that money is gonna go in their savings into their bank on yourself. And that account is going to start to grow very, very rapidly, very quickly, all while being debt free, then at some point, they're going to buy a house, but they're going to use their bank on yourself to basically pay it. 

So hopefully, this helps you guys to kind of understand in a nutshell, what we do with people and why we use these concepts. It's not just meant to be a PowerPoint presentation are a pretty concept. This is really helping to change people's lives. And we really hope that it helps you guys, wherever you are in the world, to be able to apply this in your own life. These spreadsheets are available from us if you want to get access to them. As I said, you know, write us an email, let me put up my contact info here again. And we'd be more than happy to assist you to do this. There any questions, either here in the audience or wherever you're watching? Anybody have any questions before we sign off for today?

Okay, well, if there's no questions, I really want to thank you and appreciate your time today. Thanks for investing the time to be with us. Hopefully you have time to go back and review everything that we shared. And like I said, join our financial freedom alumni page, you know, get in touch with us. And we'll see you for the next session on how to become your own bank tomorrow. Thanks, everybody.