So how do you get out of debt fast? Like let's break a land speed record and get
out of debt as fast as possible. My name is Kris Krohn and today on limitless TV
I'm going to share with you two very popular methods for cruising right out
of debt.
Getting out of debt is something that is critical and important for every one of
us to know how to do. But sometimes, how we feel about it and how we go about it
absolutely gets in our way and clouds our ability and actually keeps us from
being able to do it successfully. I'm going to share with you two very
different ideas and I want to start with the one that is really popular. If you've
been watching or have heard of Dave Ramsey this is a guy out there, he's
dominating the radio airwaves, he's written books and it's all about
different ways to snowball yourself out of debt. How to, how to pay off your worst
debts with your highest interest rate and when it's eliminated then take the
savings and apply it to your next biggest debt with highest interest rate.
And once it's paid off take that and you can spend years in an eliminate debt
mindset. And you know what? Dave is super popular. People out there love him and
you know what I'm even a fan of Dave if you don't have a more sophisticated game
plan. If you really don't know what your financially doing Dave is the perfect
mentor for you. Get his books and listen to his radio. Because what Dave will do
is he will help you over time get out of debt. But where I get for from Dave is
that getting out of debt is not the most important goal. Let me, let me put it to
you this way. When you retire and you have no debt, can you retire? Crap! I mean sorry.
No! I can't! Because if I go to the grocery store
I can't present my debt-free card and get groceries. They still cost money
right? Like the fruit that I want to buy. I want to buy this banana but guess wha?t
I cannot trade no debt for banana. So, so what I'm saying is, is that an income is
important and no debt is important and which one is more important? Well I'm
going to pose you a question that I sometimes ask people and you might
decide whether you really love me or hate me in my philosophy after I share
this question with you. I'll let you decide and I'm okay either way. Maybe I
hope you like me a little bit more than not like me. I could either right now
write you a check and pay off all your debts
or I could write you $10,000 check
every month for the rest of your life. Which did you choose? What do you want to do?
Which would you rather have? If you say, Kris I just want to wipe out
my debt. You may be operating in scarcity and unfortunately a lot of people
searching for videos like this, there is that scarcity. Scared City. Right? This,
this, this, this place where we're always living in Halloween viel when it comes
to oh my gosh I'm buried by my debts. They terrify me. I want them paid off. I
hate having to service my debts. I get it. Don't give in to the fear. Don't give in
to that feeling you don't make good decisions from scarcity. Instead I do
something very different and what I want to show you today is a different
philosophy that says, what would happen if I was able to eliminate debt by
controlling it? What if I could hold on to debt for a short period of time and
use it to eliminate my bad debts. Because what I'm going to share with you today
is how in the real estate investing world
I will acquire debts that are business debts and they make me money. They pay me
every single month, they write me a cash flow, they increase my net worth. I've got
equity in these assets. I'll hold them for 3, 4, or 5 years. I will then pay him
off and eliminate the debt and I got 50,000 extra dollars left over. And you
know what I can do with that? I can pay off my consumer debt and that's what I
want to show you next. So this is what sounds crazy. The way that I became a
multi-millionaire in four and a half years was not by getting out of debt
because I was in debt. It was by leveraging debt to create more debt to
get out of debt. It's this idea of what? take two steps backwards to take 10
steps forward. For this, for you to understand, once you understand that
there are two different kind of debts and one is good and one is bad. The bad
debt that Ramsey talks about is the consumer debt. It's buying a boat that
cost you five hundred dollars a month. It's, it's putting things on credit card
that you can't really afford and then you have a monthly obligation. That is
the debt you want to eliminate but some of you are so far behind that it could
take you months and years to snowball and pay all that off instead what do I
do? I'll go buy an asset which requires debt.
This is a good debt. It is a positive debt. It is a business debt. How do you
know that it's good instead of bad? It makes you money. It pays you. So I'll buy
a home, with let's call it, let's say I got $30,000 of debt that I'm trying to
pay off and at the rate that I save money it might take me five years to pay
it off. I'm going to go buy a house with $30,000 of equity and I will be
acquiring debt because the house might be worth 150. I might be paying 120 and I
have a hundred and twenty thousand of debt. I went from $30,000 of consumer
debt and I just piled on a hundred and twenty thousand dollars of debt but it's
good! Why? Because it pays me two, three hundred bucks every month. Does your
other debt do that? Do your credit card send you a $300 thank you check in the
mail? My real estate does. So now all of a sudden guess what? I'm controlling this
debt and it's a positive debt and I like the yummies that it's given me every
single month. And five years later, due to basic 3 4 or 5 percent appreciation, I
now sell this house and I get a $50,000 chunk. The debt is gone. I got 50 grand.
Guess what I can do with it? Pay off my consumer debt. And guess what? Have 20
grand left over. But now you're thinking, wait wait wait wait wait what if I took
the 50 grand and I bought two houses? Instead of paying off the debt
I kept servicing my debt. But what if I bought two houses and I was a quarter
million dollars in debt? Yeah!!!!
Why? because now I'm going to get equity here, equity
there. I'm going to sell those homes a few years later and guess what I got? Now
I got 150 grand. Shoot. What should I do with one hundred and fifty thousand dollars?
Now I can pay off my thirty thousand dollars debt. And I can take the other
120,000 and do what? I can go pile a whole bunch more real estate. In other
words, do you want to invest in investments that will make you money and
get your money working for you with positive debts? or do you want to just
focus everything on get out of that get out of debt get out of debt so years
later when you've done it, you're left with nothing. And remember, you cannot
retire on no debt. There's something more important than no debt. Do you know what
it is?
Food.
Food costs money. Clothes don't walk
around naked. You need money to live and survive. So for me, the priority is cash
flow that covers my expenses and then paying off my debt. It's the other way
around and this is the way investors think. This is the way successful people
think. But the way Dan Dave Ramsey talks, Dave Ramsey is the way that the consumer
thinks. And so I'm inviting you to become an investor, I'm inviting you to educate
and be more sophisticated. Heck you should come out to my three-day
limitless wealth intensive and let me teach you what the wealthy do. Let me
teach you the way that they think because if you do what poor people do,
paying off debt and if that's like the biggest dream and vision you have, sorry
friend. You're always going to struggle with debt your entire life.But if you
elevate yourself to the status of a business owner and investor, someone that
makes their money work for them then you'll pay off your debts. But you'll
create a surplus and that's what you really want because what you really want
is no debt and you want a cash flow because you can retire on that.
Thanks for watching today's video. Make sure you subscribe because I want to notify you
about tomorrow's video that sinks right with this it's on the power of
visualization and how you do it because it's getting out of debt is a priority
for you then I'm going to share with you how to align your heart, mind, and spirit
to make it happen as fast as possible. See you tomorrow.
you