[0:00] as a person that has struggled with high
[0:01] interest debt in a sense that it was
[0:03] debt that was costing me the most to
[0:05] have and it made me feel like I was
[0:07] working backwards because I would wake
[0:09] up every day go to work get paid and I
[0:12] felt like most of my income was going
[0:14] towards servicing my debt I became very
[0:16] intentional to get rid of the debt
[0:18] because I understood the freedom it will
[0:20] give me and so on today's video I'm
[0:22] going to be sharing with you some of the
[0:24] things that have helped me in terms of
[0:26] just getting out of that fast and so
[0:28] those are the things that we're going to
[0:29] be looking at today as much as we
[0:31] expected to pay each and every month the
[0:33] minimum towards our debts but the
[0:35] concept here is how to get out of debt
[0:37] fast fast enough that the banks cannot
[0:39] catch you so let us get into some of
[0:41] those points first things and foremost
[0:42] let me introduce myself my name is jeno
[0:45] if you new here I would love for you to
[0:47] join us by clicking that red subscribe
[0:48] button on the bottom and also do not
[0:50] forget to smash that like button because
[0:51] it does help with the YouTube algorithm
[0:53] and so let us get to the point the thing
[0:55] that I did which I felt like actually
[0:57] propelled me much quicker to deal with
[0:59] my personal loan was going back to my
[1:01] bank and restructuring my loan it's like
[1:04] it's like that thing whereby someone has
[1:05] owned a car or has owned a house for a
[1:07] certain period of time and then they go
[1:09] to refi refinance it so this is
[1:12] basically similar to that it's a way of
[1:14] restructuring your loan setting new
[1:16] terms in terms of how long are you going
[1:18] to pay for this how much money are you
[1:20] going to be paying per month in order
[1:22] for you to get out of that quicker what
[1:24] people do normally which I highly think
[1:27] that it is a not it's not a wise
[1:29] decision however if you're struggling
[1:30] with a lot of debts this is what these
[1:32] debt review companies do is they will
[1:35] basically clamp everything in one place
[1:38] decrease the term of Lo increase the
[1:40] term of loan meaning that you end up
[1:42] paying more and decrease the installment
[1:44] that you're going to pay now when you
[1:46] trying to get out of debt that will take
[1:48] you a very long time to get out of and
[1:50] it comes with other repercussions such
[1:52] as you being blacklisted not being able
[1:55] to do anything not being able to get any
[1:58] sort of funding from the bank what
[1:59] whatever and so this one it's different
[2:03] in a sense that you do it yourself you
[2:04] go to the bank and actually you do the
[2:06] opposite you say I want the temp to be
[2:08] shorter and I want the installment to be
[2:11] higher and then see if the bank will be
[2:13] able to do this now I would say that
[2:15] this is largely dependent on your credit
[2:17] score your credit score needs to be very
[2:19] good when it comes to this you need to
[2:21] be up to dat when it comes to your
[2:22] repayment you need you need to not have
[2:24] missed dates you need to have a credit
[2:26] score a good credit score because a good
[2:28] credit score will allow the bank to be
[2:30] able to even say okay we are willing to
[2:33] do this for you n because they will
[2:36] literally be giving you a loan again and
[2:39] you do not want to be going to them with
[2:41] a bad credit score because what will
[2:43] happen is they will want to give you
[2:45] that loan again but at a higher interest
[2:47] which will end up costing you more and
[2:49] so I would say if you know that your
[2:51] credit score is good and when I say
[2:52] credit score is good check with um what
[2:55] is this clear score clear score will be
[2:57] able to show you your credit score and
[2:59] they will tell you which which one is a
[3:01] good credit score and so just do that
[3:04] before you go and approach banks for
[3:06] this because you want to make sure that
[3:07] as you going to the banks you know that
[3:09] you are likely to get a good interest
[3:11] rate so what I did was I went back to
[3:13] cap Tech and I said I want to
[3:15] restructure my my loan I want to pay
[3:17] this quicker and I want to pay more and
[3:20] what they did was they decreased the
[3:22] term of my loan so instead of paying for
[3:24] 20 something months I decreased it to 18
[3:28] months and then what we then did was we
[3:30] increased the installment so instead of
[3:33] paying
[3:34] 2,800 I said let's pay four let me I'm
[3:36] going to pay 4,000 into the personal
[3:39] loan this allowed the loan to be shorter
[3:42] in terms of how long I have to pay for
[3:44] it and also increasing the installment
[3:46] means that that I get to CH I get to
[3:49] deal with the the principle much quicker
[3:51] than to service the interest so that is
[3:54] the that is one of the things that I
[3:56] would say do and I say as I said this is
[3:59] lar depend on your credit score you want
[4:00] to make sure that as you're approaching
[4:01] banks for this that your credit score is
[4:04] just as good so that will be one of the
[4:06] things that I would say think about
[4:07] doing especially if you are expecting to
[4:12] if you just got a promotion you got a
[4:14] new job that pays you more and you've
[4:15] got this debt I would say that the first
[4:17] thing that you would do is just figure
[4:19] out if you can restructure your loan now
[4:22] but if there isn't that option of
[4:24] restructuring your loan there are other
[4:26] options that are there as well it's not
[4:27] the end of the world there are other
[4:29] things that you can do in order for you
[4:30] to get out of that Fast N the second
[4:33] thing that I did or one of the another
[4:35] thing that I did which I feel like
[4:37] actually helped me a lot when it comes
[4:39] to dealing with all of my debts and that
[4:41] is including the credit cards as well as
[4:43] well as the personal loan was to not
[4:46] count my bonus as mine now what what
[4:48] most people do is whenever they're going
[4:50] to get a bonus like we're approaching
[4:51] December and people are going to get
[4:53] bonus but I can tell you that majority
[4:55] of the time majority majority of people
[4:57] who know very well that they're
[4:58] struggling with de they have a lot of
[5:00] debts they are not thinking that I need
[5:02] to use this money in order for me to
[5:04] attack one or two debts they are
[5:06] thinking where can I spend it and so
[5:09] what I did was because I became very
[5:11] intentional to pay off my debt I told
[5:13] myself that this money that I'm going to
[5:15] be getting as my bonus which in
[5:17] government you get for your birthday I
[5:19] told myself that I'm going to be using
[5:21] this money to attack my debt whenever I
[5:23] would get my bonus I would just Channel
[5:25] it I would Channel majority of it into
[5:28] one of my Deads I'll Channel majority of
[5:30] it into one of my debts and this really
[5:32] helped me so much and just getting out
[5:34] of debt quicker and another thing that I
[5:36] did was I was due to receive some of the
[5:39] money that I that my employer had been
[5:41] saving me for housing because you can
[5:44] save if you're still renting they can
[5:45] save for for you and then when you buy
[5:48] you claim that money back and you get
[5:50] this large sum of money and so I was due
[5:52] to get that money and what I did was I
[5:54] took all of that money and I channeled
[5:57] it on my personal loan I I think maybe I
[6:00] a I used about 5,000 of that or less
[6:02] than that or slightly more but majority
[6:05] of that money I channeled it towards my
[6:07] personal loan now what most people do
[6:10] which is one of the things that which is
[6:12] the reason why we keep leaving paycheck
[6:15] to paycheck as people is that whenever
[6:17] we are getting money that we are not
[6:19] used to money that we are not expecting
[6:22] what we do is we take that money and we
[6:24] spend it because in our minds it's all
[6:26] about spending spending spending instead
[6:29] of creating in instead of fixing our
[6:32] finances so that we can have much more
[6:34] freedom with our normal salaries it's
[6:36] like we forget that this money is just
[6:38] once off a bonus is a once off in a year
[6:40] and you want to make sure that you
[6:41] utilize it efficiently so that you can
[6:43] free up money in your salary that can
[6:46] come back to you but most people do not
[6:48] want to think that way and so for me I
[6:50] told myself that for my bonus it's not
[6:52] mine for the money that I got as my
[6:55] housing my housing subsidy it was not
[6:58] mine I Channel I channeled it towards my
[7:01] debt and this really helped me to speed
[7:03] up in terms of paying off my loan such
[7:05] that my loan I supposed to pay within 18
[7:08] months but I think I finished I finished
[7:10] it within like 14 months because I just
[7:13] whenever I would get money I would just
[7:14] ho into it I would just ho into it until
[7:17] it was done and so I would really say
[7:19] that if you are due to receive a bonus
[7:21] this year end of the year in December or
[7:24] in your on your birthday it's coming out
[7:26] up and you're struggling with debts and
[7:28] you want toay pay of that you're
[7:30] intentional about it do not count that
[7:32] bonus as yours do not use your bonus to
[7:35] buy Christmas clothes to be buying food
[7:39] endless food in the house find a way
[7:41] that you can budget for those things
[7:43] within your salary if you cannot then
[7:45] it's not a priority focus on dealing
[7:47] with your debt I'm saying this if your
[7:49] intention is to get out of debt if you
[7:52] are clear about the fact that you want
[7:54] to deal with your debt then I would say
[7:56] that those things such as buying for
[7:59] buying kids clothes and what what for
[8:00] Christmas and what what those things can
[8:02] wait or you can find a much more you
[8:05] know a much more cheaper option whereby
[8:08] you do not have to spend a lot of money
[8:10] cuz yes you still want to show up show
[8:11] up for your child but at of the day
[8:13] these are practices that we have
[8:14] instilled in our children not because
[8:16] they ask for them ask for them we taught
[8:19] them we taught them that there is things
[8:21] such as Christmas clothes like phone
[8:23] like right now some people are telling
[8:25] me that we need to buy Christmas clothes
[8:27] even my partners like we need to buy
[8:28] Christmas cloth for and then I keep
[8:30] telling him like doesn't know about that
[8:33] so I asked do you want Christmas clothes
[8:35] doesn't understand that the only thing
[8:36] she wants is toys and also because I
[8:40] told her that I will buy you Christmas
[8:42] toys if I did not tell her that she
[8:44] wouldn't know when it comes to clothes
[8:47] just knows that we buy clothes she
[8:49] doesn't know that there are specific
[8:50] clothes for Christmas there specific
[8:52] clothes for Easter or clothes for this
[8:54] she just knows that they are clothes and
[8:56] so the things that our kids expect is
[8:58] because we we have instilled those ideas
[9:01] and those practices to them and so you
[9:03] better deal with it since you've already
[9:05] planted that seed you will find a way to
[9:07] do that but just make sure that majority
[9:09] of your bonus money goes towards paying
[9:11] off your debt then the third thing I
[9:13] would say is do not pay minimum because
[9:15] if you pay minimum in your debt you're
[9:17] going to take longer to pay it off like
[9:19] even now I've shared this in many of my
[9:21] videos that when it comes to me paying
[9:23] off my house I do not pay minimum
[9:25] because I understand that if I pay
[9:28] minimum I'm going to take longer to pay
[9:30] off my house and so even with your debt
[9:32] if you're intentional about paying it
[9:34] off do not pay the minimum if the bank
[9:36] says that you pay 1,000 pay 1,500 if the
[9:40] bank says you pay 500 pay 1,000 make it
[9:44] in your budget that it allows you to pay
[9:47] an additional amount into your debt and
[9:50] this will help you to push your debt as
[9:51] much as possible now what I'm going to
[9:53] do is I'm going to film another video
[9:55] which is going to be a continuation of
[9:57] this talking about how to create a a
[9:59] debt repayment plan and then we're going
[10:01] to get into detail into how do you find
[10:03] where do you find these 500 R to add in
[10:06] your debt in order for you to pay to pay
[10:08] more than the minimum and so but for now
[10:10] I'm just saying that make sure that you
[10:12] are not paying the money that they are
[10:14] saying You must pay because if you do
[10:15] that you're going to take longer to pay
[10:17] off your debt so you want to pay more
[10:19] than the minimum if they say pay 1,000
[10:21] pay
[10:22] 1,500 always add additional and I would
[10:25] say that it's always good to add add an
[10:27] additional or 500 I feel like it makes a
[10:30] much bigger Dent there are certain debts
[10:32] that you can pay additional such as your
[10:34] credit card you can pay an additional
[10:36] such as your personal loan you can pay
[10:38] additional for your car you can pay
[10:40] additional for your house you can pay
[10:42] additional you set these things up so
[10:44] that it is there it is done so for me
[10:47] with my house what I did was whenever
[10:49] they say when they sent the a letter to
[10:52] say that this is how much interest I'm
[10:53] going to be paying on my debt because
[10:56] the interest rates has went up what I
[10:58] did was I just added a th000 so they say
[11:01] they said to me you're going to pay um
[11:03] you're going to pay 5,000 I think was
[11:05] 5,800 then what I did was I just added a
[11:08] th000 on top of that so instead of
[11:10] saying I want to pay five i instead of
[11:13] saying I want to I'm going to be paying
[11:15] 5,000 what what which they said I must
[11:17] pay I added 8,000 making it about making
[11:21] it 7,000 actually I just added it to be$
[11:23] 7,000 and then that was my acement that
[11:27] I sent back to my employer saying
[11:29] every month make sure that 7,000 goes
[11:32] out to pay for my bond that is what I
[11:34] did now other people what they can do is
[11:37] every month when they when they get paid
[11:39] is they would add additional they'll
[11:41] just add additional there's a way that
[11:43] you can go about this when it comes to a
[11:45] home loan which like they say pay after
[11:48] the seventh after the interest has been
[11:49] added then pay for me I just felt like
[11:52] okay this just too much I just want to
[11:55] add here initially I know that
[11:57] eventually it will add up so if you
[11:59] really want to get out of that fast do
[12:01] not pay the minimum always add extra and
[12:04] as I said I'll do a video on creating a
[12:06] debt repayment plan on how do you then
[12:08] go about doing this like the
[12:09] implementation part speaking of debt
[12:12] repayment plan the fourth thing is
[12:13] create a debt repayment plan I feel like
[12:16] this is very important in order for you
[12:18] to stick to your decision now that you
[12:21] know that you want to pay off your debt
[12:22] you are clear about the debts that you
[12:24] have it's very important to then now
[12:26] create a debt repayment plan when I'm
[12:28] working with my clients within the
[12:30] financial mentoring uh program what I we
[12:32] do is if you've got thatt is we sit down
[12:34] and I say list me all tell me all of
[12:37] your debts all of them how much do you
[12:39] owe in each and every one of them if you
[12:41] do not know what I would say is go back
[12:44] to the people that you owe ask them how
[12:46] much do you owe on this account on this
[12:48] this this this this come back give me
[12:50] the list of all those debts how much do
[12:52] you owe and then how much do you pay how
[12:54] much is the interest you need to start
[12:56] there when you're creating a debt
[12:57] repayment plan and and then you can go
[12:59] further which I'm going to explain on
[13:01] the next video but for now it is very
[13:03] important that you create a Deb
[13:05] repayment plan it's very important to
[13:07] know how are you going to be attacking
[13:09] this debt in order for you to create a
[13:11] big dent in terms of how much money you
[13:14] spend on debt per month and so sitting
[13:16] down and creating a debt repayment plan
[13:18] will allow you to be able to tackle your
[13:21] debt one by one one by one and be clear
[13:25] about okay how much am I putting on each
[13:27] and every debt okay once I'm done with
[13:29] this one we are on to the next one how
[13:31] much am I putting into this one and for
[13:33] how long am I planning to to do to do
[13:35] this to a point whereby when I'm doing
[13:37] the debt repayment plan for my clients
[13:39] we put it down to the tea that on this
[13:42] month you are finishing on this month
[13:44] you are starting to you we we are adding
[13:47] more on the following debt and you're
[13:49] going to be paying it off by this date
[13:51] by this month you should have done with
[13:54] this so what this helps with is that it
[13:57] allows you to track your progress it
[13:58] allows you to remain accountable and
[14:01] also it gives you an idea of how long it
[14:04] will take for you to be out of all of
[14:06] your debt or how long it will take for
[14:08] you to be out of each and every debt and
[14:10] then altogether how long would it take
[14:12] for you to say you are free and so it's
[14:15] very important to sit down and create a
[14:16] debt repayment plan if you do not have
[14:18] this and you're intentional about paying
[14:20] off your debt I would say sit down and
[14:22] create a debt repayment plan and then
[14:23] the fifth th fif fifth thing is I would
[14:26] say know your why know your why because
[14:30] if you know why you want to get out of
[14:32] debt it will make it will be the
[14:33] motivation that you need as you are
[14:36] paying off your debt because there will
[14:37] be times whereby you feel discouraged
[14:39] there will be times whereby you you're
[14:41] just tired there will be times whereby
[14:43] you feel demotivated and so having a
[14:46] strong why will allow you to keep going
[14:48] when it comes to paying off this debt so
[14:50] be clear about why do you want to get
[14:52] out of debt for me I wanted to get out
[14:54] of debt because I wanted to get my money
[14:56] back that was the first thing I also
[14:58] wanted to have have freedom of my income
[15:00] when it comes to just knowing that
[15:02] majority of my income comes to me and it
[15:05] is not servicing debt I also wanted to
[15:08] deal with my debts because I wanted to
[15:10] start working towards Financial Freedom
[15:12] me clearing out my debt was one of my
[15:15] means of saying I'm working towards
[15:17] Financial Freedom and so you need to be
[15:19] clear about your why there were times
[15:21] whereby I would get my bonus and I would
[15:23] look at it I'm like M Jen like I really
[15:26] want to renovate this house I really
[15:27] want to do this like you know I really
[15:29] would love this for my house and then
[15:31] I'll remind myself why is getting out of
[15:33] debt more important than me renovating
[15:35] my house and so you need to be clear
[15:37] about your why why do you want to get
[15:39] out of that sit down and think about
[15:41] this thoroughly as much as I'm sharing
[15:43] my wise they don't have to be your wise
[15:47] because if you take my wise as yours
[15:49] they're not going to be strong enough
[15:50] for you to be able to remain consistent
[15:53] and disciplined in the times whereby you
[15:55] do not feel like doing it so you need to
[15:58] sit down and and think about your why
[16:00] and also another thing for me that was
[16:02] my why was I hated the being in so much
[16:05] debt and I know for some people say oh
[16:07] hate is a lot hate hate is a big word or
[16:10] is a strong word yes it's a strong word
[16:12] because it invokes strong emotions I
[16:15] hated being in so much debt I hated
[16:18] getting paid each and every month and
[16:20] seeing all of this money going going
[16:22] towards debt I hated that I hated
[16:24] feeling like I wasn't in control of my
[16:27] finances that for me was enough
[16:29] motivation for me to say I am getting
[16:31] out of this debt so what I'm asking you
[16:33] to do is sit down and think about why do
[16:35] you want to get out of debt why do you
[16:37] want to pay off this debt what is the
[16:39] problem what is the rush because you can
[16:41] quick you can just sit and pay minimum
[16:43] each and every month but I want to I
[16:45] want you to push yourself and think why
[16:48] is it that it's so important for me to
[16:50] pay off this debt once you understand
[16:53] why it's important for you to pay off
[16:54] this debt then sit down and create a
[16:56] debt repayment plan once you've created
[16:58] a debt repayment plan look at how much
[17:00] money you can add on each and every on
[17:03] those debts in order for you to get off
[17:04] it get out of it faster and then look at
[17:08] if you are getting any additional income
[17:10] that you are not expecting bonuses look
[17:12] into channeling that into the debt so
[17:15] that you can get out of it fast if you
[17:17] do these things like these are things
[17:19] that I did I'm not just talking about
[17:21] things that I didn't do I did these
[17:23] things myself to the tea and it's a
[17:26] reason why I was able to get off Deb so
[17:28] quick it's the reason why I was able to
[17:30] pay off my personal loan my credit cards
[17:32] it is the reason why I now sit and I get
[17:35] paid per month and I hardly have debt in
[17:38] my budget yes I have like my my home
[17:40] loan my NSP pass but those are things
[17:42] that are taken before my salary comes to
[17:44] me the only debt that I pay for right
[17:46] now is my cell phone contract that I I
[17:48] actively pay for it's my cell phone
[17:50] contract but before I had credit cards I
[17:53] had personal loan I had store accounts
[17:55] but I was able to deal with all of those
[17:56] things because I took it upon upon
[17:58] myself that this is not the life that I
[18:00] want for myself and so sit down and plan
[18:03] and then execute execute execute when it
[18:06] gets hard remind yourself why you
[18:07] started and so we have gotten to the end
[18:10] of this video and I hope that you found
[18:11] value in this video and that you found
[18:13] points of Nets that are going to help
[18:15] you as you work on your debt as you work
[18:18] on paying off your debt and so I'll see
[18:20] you on the next one please take care and
[18:22] stay safe
[18:23] [Music]
[18:27] bye
[18:29] [Music]