So got a question for you today. How do you get out of debt as quick as possible, there's really two functions of how to get out of debt that quick. The first one is how much you pay each month, are you paying the minimum payment, if you're paying the minimum payment, it's gonna take you a lot longer than if you're paying above the minimum payment. Then the second and most critical part of getting out of debt quicker is the cost of the debt or set another way, the interest rate. So what's key in getting out of debt is the ability to keep those interest rates as low as possible throughout the process. Or this season, as we'll talk about, of getting out of debt, getting those lower interest rates, getting them from the you know, a lot of people are paying 27% interest rates, getting them down into the teens, maybe get them into the lower teens.

It's going to cut the cost down of debt and more of the amount of money that you're paying each month is going to go to debt liquidation. So one of the things I want to do in this teaching course, was talk about, you know, some practical ways, maybe some ways that you didn't think of, and to get out of debt the quickest way by getting those interest rates lower. Let's start with the first one. And I call it the balance transfer game. This is something that a lot of people do, where they'll have a high interest rate debt, say maybe they're paying 18 19% on a credit card debt, they'll get an offer in the mail, the offer says, If you transfer the balance of that high interest rate debt towards the new credit card, we're going to give you zero percent for 18 months. Now on the surface, that sounds like a pretty good deal.

In fact, you might even start to think, boy, they're giving me a great deal. The bank is being friendly. I think I'll go ahead and initiate that transaction. The reality is, is that banks and credit card companies are not there to be your good friend. They're there to catch you in. hopefully make money from the mistakes that you make.

They're smart enough To know the statistics This was suggest that if you transfer this balance over to this zero to 18 month period, that they're going to make that you're going to make a mistake and they're going to be able to capitalize on it. I mean, that's how credit card companies make the money. They set these current credit card traps, to show that they make money when you make a mistake. They set the deals up to where it's so easy to make a mistake. I mean, life can happen, anything can happen. And you can make a mistake and you're going to pay dearly for it.

So here's the issue with the balance transfer game. I've got no problem with it. In fact, that's a beat the credit card companies at their own game. The key though is to know what you're doing and not make the mistake. So the very first thing you want to you want to look at is the fine print. Now, here's the way the credit card companies actually trick you.

They give you this single page that says here's your terms and conditions. Here's your interest rate. Here's the penalties. Here's the fees. It's just all concise into one page. And then they send you after you start using the card, the card member agreement at that one page of fine print just went to about 18 pages.

And they talked about how the different ways that they can put you into default, how the different ways they can troll you once you move that money over. So you know, it's one of those things where I think it's very unfortunate that credit card companies decide to send you that after the fact. In fact, you probably won't even pay attention to it because it's mail. It's 18 pages, and it's about your credit card. Let's face it, you got better things do correct. So you get that credit card agreement before you sign on the dotted line by going and doing a Google search.

Fortunately, you can find it out on the internet they have it they do have a posted they just don't have it posted to where you can easily find it. Read through that make sure that you are comfortable with what that term those terms and conditions say because I got to tell They're more abusive than ever. I did a teaching course on this. I don't know if you've watched yet, but they are abusive, even with all the regulation that has gone out. Back in 2009, President Obama signed the card act to curb consumer abuse with credit cards, they're still at it, they're just doing it in different ways and getting away with it. So read the fine print the card member agreement, make sure that you're okay with it, and then transfer it if you're okay with it, if you know the rules of the game transferred, and then enjoy that zero percent for 18 months pay additional if you can, and then at the end of that term, look for the next credit card deal transferred again.

Now, my disclaimer is that's going to have a little bit of a negative effect on your credit card, excuse me on your credit score, but I think that that's minor in comparison to the advantage that you get of lower interest rates. And this next one, strategy number two, is collateralize. Your car and I had really never thought about this until a buddy of mine said hey, you know what I did. I had a paid off To paid off cars, I went to my credit union and said, Can I borrow money against those cars. And of course, it's like taking out an auto loan, just reinstating an auto loan to devalue those cars and you get this small interest rate, you take that money and you pay down your high interest rate, credit cards, not a bad deal. Because you're you've just instituted an installment contract and you know that you have a certain low interest rate, it's going to pay off at a certain date, and you're going to be in pretty good shape.

It's a it's a great way to lower interest rates because the interest rate for a an auto loan is so very small in comparison to double digit interest rates for credit cards, it's a great way to lower your interest. Number three is peer to peer lending. Now this is one that's starting to really catch a lot of popularity. Unfortunately, I don't think people really understand how it works. And I'm going to be very general in explaining this. But you have an online lender that you go to a portal if you will That portal brings together borrowers and people who want to invest their money into debt.

So let's say that I have $10,000 I go to this online lender and I say, Listen, I want to invest this $10,000 into somebody's loan, then they take that $10,000 and they match that $10,000 up with a borrower who's looking to borrow the money. And so let's say that they're charging them you know, X percent of interest, you're gonna get as the investor five or six maybe percent of interest along the way, as long as they don't default. It's a great deal for everybody. But if they default, of course, you have problems which you probably will not get back the the money that you put into it. But I will say this is that these peer to peer lending companies, they do a great job and making sure that you understand the risk, and that they underwrite the borrower to make sure that the borrower will not have trouble paying the money back.

Now, this is a installment loan, which is great. Because you went from having an open credit card line to an installment loan that is better for your credit score, in, in most cases, depending what else is on your credit report, of course, will increase your credit score because you made that switch. Now the fourth thing, and I think I started off the slide with the three, we added one, so there's four, and this is to create your own consolidation program. Now this is nothing new. This is nothing that I made up or came up and been put together. I do write about it in my book deceptive money.

Generally speaking, I want to go over the highlights of how this works. There's two components that are very important. As you see on the screen, you have this consumer, they've got all these credit cards in two car payments, they want to get out of debt. Now if they just pay it out over time, it's going to take a very long time to pay it to pay it out. And so what you're looking to do is you're looking to to determine what the single payment is every month, which is $1,153. They're paying in total of all the credit card payments.

So the first thing that you want to know you've got to commit to paying that $1,153 a month until you're completely out of debt. Now, that means if you pay if you're paying $100 on credit card one, you pay off credit card one, and you had the temptation say, Well, I'm going to shift this hundred dollars to something else, or I'm going to start saving this and if you can't do that, you have to shift that hundred dollars to another one of your debts, which one. The second key part of this is that you shift it to the highest interest rate card. So that money goes to an add to that highest interest rate card. Now, once another card is paid off, you simply shifted to another highest interest rate card, and it works unbelievable and get you out of debt a lot quicker than you thought.

I've talked to many people in my office you've come in in industry. Bear and stressed out because they have all this debt, they have all these credit card come these credit cards and they look him in the go, I'll never get this done. It's gonna take me 1520 years to get out of debt. It's not true if you follow this methodology. And there's other various ways of following this methodology. For instance, you could instead of going to the highest rate interest credit card, you could go to the lowest balanced credit card and some radio, radio hosts in the media and financial media do support that you do this, it's not going to get you out of debt quicker, you want to go to the highest interest rate and make sure that that had that that gets paid off first because this the higher cost of debt that's making all this work against you.

And so you want to get that reduced as quickly as possible. Now, if you look here on the screen, you can see that if you went normally like you're doing you're just paying off these debts and one by one, it's good to He's 65 months if you do this consolidation plan, that takes it down to 30 months, not a bad deal. Now what I wanted to do was take this in real time. And I'll actually only back up, what I want to do is show you on a simple way how this works. You see for debts, you're paying 250 a debt. And it's very simple.

If you didn't catch the how this works when I what I just went through it. Now I'm going to show you a very simple way you pay off the first debt, the 250 goes to the second debt, which we'll just assume as the higher interest rate credit card, that's $500. You pay off the $500 until that debt number two is paid off, then it goes to 750. And that's debt number three, you pay 750 until that's paid off, then the full thousand dollars goes to the fourth debt until that debt is paid off. Very simple concept. But it's got to be managed and it gets you out of the higher interest rate debt as quickly as possible.

Another advantage of going through this process as you pay off debt, guess what starts coming in the mail offers for zero percent transfers. And so then now it's a new game, you have the ability to lower your interest rates, your credit score starts to go up as you pay off debt. And you have options. And that's the problem with someone who's facing a big debt situations, they don't have options, but you do have options as you pay this debt down. Now, this is a slide that shows this this particular situation broken down through every credit card company and payments. And as you can see, I just want you to catch the visual of this.

And if you if you want to slow this down and study it, you can, but you can see that in the first column, that debt gets paid off, it goes to the second column. And you can see as debts get paid off, you start to shifted that to the other debts, and you keep going and you remember your shifting to the higher interest rate debt. And then it comes down to where you've only got two debts. And then actually now you're down to one debt. You can see that we're down to one debt and in the 30th month we are debt free works out really great. And it's it's a, it's a way to get out of out of debt quicker.

The problem is, is that most people don't know about this very simple concept. And it can work even if you have high high interest rate debts, where people feel hopeless, and they have no solutions, but it works. The fourth strategy is dealing with debt collectors. Now, in my book, deceptive money. I've written a chapter on how to deal with debt collectors. It's the largest chapter in the book, I find that people don't know that the law is on your side.

This is a way to get debt eliminated by taking advantage of for the protection of the law. There's the Fair Debt Collection Practices Act, which is a set of legislation that says what a debt collector can and can do if they violate your rights. You can file a lawsuit again against the debt collector, oftentimes wiping out that debt. And then depending on how agree just the offense was, you might even get a settlement. Now the key is is finding an attorney that will do that. There are attorneys that specialize in debt collector law, and they actually work for you for free until the settlement comes, and then they get a pretty large chunk of that settlement.

So that's on a contingency basis, which is nice. But that's another way if you're being harassed by a debt collector, and there's a teaching course on dealing with debt collectors that you need to watch anyway to make sure if you haven't watched it yet, how to deal with all this, but the law is on your side, and it's something that you need to know. I think it's important to know that to get out of the emotion of being in debt, first of all, you know, it's one of those things where you've accumulated it, it's done. The past is not here to haunt you. The present is here to do Something about. And so I've always said that I think it is about viewing it as a season of your life.

And getting through that season as quickly as possible because you have options once you get to that season. I talked about the US economy, how can you make yourself your own economy? How can you add income, extra income to pay down debt? How can you get extra jobs. And once again, you may look at it from the standpoint of going but I don't want to work an extra five or 10 hours a week, on top of what I'm already doing. You're only doing it for a season, create that extra income and pay down the debt.

It's extremely important. Now here's the cool thing about it. If you're you say you're going through this debt consolidation plan that we just talked about in this teaching video, and you get to that point to where you are debt free, and you're used to let's use the example of $1,253. Now you have one that you have over $1,000 that you You've used to that you're used to paying, you've been paying it for a long time you're debt free. Now you can take that $1,253 and apply it towards your financial goals. Maybe you apply it towards your retirement, college education, maybe building up your emergency account, but you have that cash flow that you that you've been paying this entire time.

And you can use it to your advantage. I gotta tell you, really, it comes down to this, it comes down to being smart about getting out of debt, and utilizing the techniques and the options that are available to you. The problem is, is that most people don't know the options that are available to them. They don't know that there are strategies that you can undertake. And I'm hoping that as you go through the course, especially the course the core course on debt, that you learn that there are options you can get out of debt the right way.