Best ways to pay off debt fast (Proven ways that actually works)

[00:00] as a person that has struggled with high

[00:01] interest debt in a sense that it was

[00:03] debt that was costing me the most to

[00:05] have and it made me feel like I was

[00:07] working backwards because I would wake

[00:09] up every day go to work get paid and I

[00:12] felt like most of my income was going

[00:14] towards servicing my debt I became very

[00:16] intentional to get rid of the debt

[00:18] because I understood the freedom it will

[00:20] give me and so on today's video I'm

[00:22] going to be sharing with you some of the

[00:24] things that have helped me in terms of

[00:26] just getting out of that fast and so

[00:28] those are the things that we're going to

[00:29] be looking at today as much as we

[00:31] expected to pay each and every month the

[00:33] minimum towards our debts but the

[00:35] concept here is how to get out of debt

[00:37] fast fast enough that the banks cannot

[00:39] catch you so let us get into some of

[00:41] those points first things and foremost

[00:42] let me introduce myself my name is jeno

[00:45] if you new here I would love for you to

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[00:53] and so let us get to the point the thing

[00:55] that I did which I felt like actually

[00:57] propelled me much quicker to deal with

[00:59] my personal loan was going back to my

[01:01] bank and restructuring my loan it's like

[01:04] it's like that thing whereby someone has

[01:05] owned a car or has owned a house for a

[01:07] certain period of time and then they go

[01:09] to refi refinance it so this is

[01:12] basically similar to that it's a way of

[01:14] restructuring your loan setting new

[01:16] terms in terms of how long are you going

[01:18] to pay for this how much money are you

[01:20] going to be paying per month in order

[01:22] for you to get out of that quicker what

[01:24] people do normally which I highly think

[01:27] that it is a not it's not a wise

[01:29] decision however if you're struggling

[01:30] with a lot of debts this is what these

[01:32] debt review companies do is they will

[01:35] basically clamp everything in one place

[01:38] decrease the term of Lo increase the

[01:40] term of loan meaning that you end up

[01:42] paying more and decrease the installment

[01:44] that you're going to pay now when you

[01:46] trying to get out of debt that will take

[01:48] you a very long time to get out of and

[01:50] it comes with other repercussions such

[01:52] as you being blacklisted not being able

[01:55] to do anything not being able to get any

[01:58] sort of funding from the bank what

[01:59] whatever and so this one it's different

[02:03] in a sense that you do it yourself you

[02:04] go to the bank and actually you do the

[02:06] opposite you say I want the temp to be

[02:08] shorter and I want the installment to be

[02:11] higher and then see if the bank will be

[02:13] able to do this now I would say that

[02:15] this is largely dependent on your credit

[02:17] score your credit score needs to be very

[02:19] good when it comes to this you need to

[02:21] be up to dat when it comes to your

[02:22] repayment you need you need to not have

[02:24] missed dates you need to have a credit

[02:26] score a good credit score because a good

[02:28] credit score will allow the bank to be

[02:30] able to even say okay we are willing to

[02:33] do this for you n because they will

[02:36] literally be giving you a loan again and

[02:39] you do not want to be going to them with

[02:41] a bad credit score because what will

[02:43] happen is they will want to give you

[02:45] that loan again but at a higher interest

[02:47] which will end up costing you more and

[02:49] so I would say if you know that your

[02:51] credit score is good and when I say

[02:52] credit score is good check with um what

[02:55] is this clear score clear score will be

[02:57] able to show you your credit score and

[02:59] they will tell you which which one is a

[03:01] good credit score and so just do that

[03:04] before you go and approach banks for

[03:06] this because you want to make sure that

[03:07] as you going to the banks you know that

[03:09] you are likely to get a good interest

[03:11] rate so what I did was I went back to

[03:13] cap Tech and I said I want to

[03:15] restructure my my loan I want to pay

[03:17] this quicker and I want to pay more and

[03:20] what they did was they decreased the

[03:22] term of my loan so instead of paying for

[03:24] 20 something months I decreased it to 18

[03:28] months and then what we then did was we

[03:30] increased the installment so instead of

[03:33] paying

[03:34] 2,800 I said let's pay four let me I'm

[03:36] going to pay 4,000 into the personal

[03:39] loan this allowed the loan to be shorter

[03:42] in terms of how long I have to pay for

[03:44] it and also increasing the installment

[03:46] means that that I get to CH I get to

[03:49] deal with the the principle much quicker

[03:51] than to service the interest so that is

[03:54] the that is one of the things that I

[03:56] would say do and I say as I said this is

[03:59] lar depend on your credit score you want

[04:00] to make sure that as you're approaching

[04:01] banks for this that your credit score is

[04:04] just as good so that will be one of the

[04:06] things that I would say think about

[04:07] doing especially if you are expecting to

[04:12] if you just got a promotion you got a

[04:14] new job that pays you more and you've

[04:15] got this debt I would say that the first

[04:17] thing that you would do is just figure

[04:19] out if you can restructure your loan now

[04:22] but if there isn't that option of

[04:24] restructuring your loan there are other

[04:26] options that are there as well it's not

[04:27] the end of the world there are other

[04:29] things that you can do in order for you

[04:30] to get out of that Fast N the second

[04:33] thing that I did or one of the another

[04:35] thing that I did which I feel like

[04:37] actually helped me a lot when it comes

[04:39] to dealing with all of my debts and that

[04:41] is including the credit cards as well as

[04:43] well as the personal loan was to not

[04:46] count my bonus as mine now what what

[04:48] most people do is whenever they're going

[04:50] to get a bonus like we're approaching

[04:51] December and people are going to get

[04:53] bonus but I can tell you that majority

[04:55] of the time majority majority of people

[04:57] who know very well that they're

[04:58] struggling with de they have a lot of

[05:00] debts they are not thinking that I need

[05:02] to use this money in order for me to

[05:04] attack one or two debts they are

[05:06] thinking where can I spend it and so

[05:09] what I did was because I became very

[05:11] intentional to pay off my debt I told

[05:13] myself that this money that I'm going to

[05:15] be getting as my bonus which in

[05:17] government you get for your birthday I

[05:19] told myself that I'm going to be using

[05:21] this money to attack my debt whenever I

[05:23] would get my bonus I would just Channel

[05:25] it I would Channel majority of it into

[05:28] one of my Deads I'll Channel majority of

[05:30] it into one of my debts and this really

[05:32] helped me so much and just getting out

[05:34] of debt quicker and another thing that I

[05:36] did was I was due to receive some of the

[05:39] money that I that my employer had been

[05:41] saving me for housing because you can

[05:44] save if you're still renting they can

[05:45] save for for you and then when you buy

[05:48] you claim that money back and you get

[05:50] this large sum of money and so I was due

[05:52] to get that money and what I did was I

[05:54] took all of that money and I channeled

[05:57] it on my personal loan I I think maybe I

[06:00] a I used about 5,000 of that or less

[06:02] than that or slightly more but majority

[06:05] of that money I channeled it towards my

[06:07] personal loan now what most people do

[06:10] which is one of the things that which is

[06:12] the reason why we keep leaving paycheck

[06:15] to paycheck as people is that whenever

[06:17] we are getting money that we are not

[06:19] used to money that we are not expecting

[06:22] what we do is we take that money and we

[06:24] spend it because in our minds it's all

[06:26] about spending spending spending instead

[06:29] of creating in instead of fixing our

[06:32] finances so that we can have much more

[06:34] freedom with our normal salaries it's

[06:36] like we forget that this money is just

[06:38] once off a bonus is a once off in a year

[06:40] and you want to make sure that you

[06:41] utilize it efficiently so that you can

[06:43] free up money in your salary that can

[06:46] come back to you but most people do not

[06:48] want to think that way and so for me I

[06:50] told myself that for my bonus it's not

[06:52] mine for the money that I got as my

[06:55] housing my housing subsidy it was not

[06:58] mine I Channel I channeled it towards my

[07:01] debt and this really helped me to speed

[07:03] up in terms of paying off my loan such

[07:05] that my loan I supposed to pay within 18

[07:08] months but I think I finished I finished

[07:10] it within like 14 months because I just

[07:13] whenever I would get money I would just

[07:14] ho into it I would just ho into it until

[07:17] it was done and so I would really say

[07:19] that if you are due to receive a bonus

[07:21] this year end of the year in December or

[07:24] in your on your birthday it's coming out

[07:26] up and you're struggling with debts and

[07:28] you want toay pay of that you're

[07:30] intentional about it do not count that

[07:32] bonus as yours do not use your bonus to

[07:35] buy Christmas clothes to be buying food

[07:39] endless food in the house find a way

[07:41] that you can budget for those things

[07:43] within your salary if you cannot then

[07:45] it's not a priority focus on dealing

[07:47] with your debt I'm saying this if your

[07:49] intention is to get out of debt if you

[07:52] are clear about the fact that you want

[07:54] to deal with your debt then I would say

[07:56] that those things such as buying for

[07:59] buying kids clothes and what what for

[08:00] Christmas and what what those things can

[08:02] wait or you can find a much more you

[08:05] know a much more cheaper option whereby

[08:08] you do not have to spend a lot of money

[08:10] cuz yes you still want to show up show

[08:11] up for your child but at of the day

[08:13] these are practices that we have

[08:14] instilled in our children not because

[08:16] they ask for them ask for them we taught

[08:19] them we taught them that there is things

[08:21] such as Christmas clothes like phone

[08:23] like right now some people are telling

[08:25] me that we need to buy Christmas clothes

[08:27] even my partners like we need to buy

[08:28] Christmas cloth for and then I keep

[08:30] telling him like doesn't know about that

[08:33] so I asked do you want Christmas clothes

[08:35] doesn't understand that the only thing

[08:36] she wants is toys and also because I

[08:40] told her that I will buy you Christmas

[08:42] toys if I did not tell her that she

[08:44] wouldn't know when it comes to clothes

[08:47] just knows that we buy clothes she

[08:49] doesn't know that there are specific

[08:50] clothes for Christmas there specific

[08:52] clothes for Easter or clothes for this

[08:54] she just knows that they are clothes and

[08:56] so the things that our kids expect is

[08:58] because we we have instilled those ideas

[09:01] and those practices to them and so you

[09:03] better deal with it since you've already

[09:05] planted that seed you will find a way to

[09:07] do that but just make sure that majority

[09:09] of your bonus money goes towards paying

[09:11] off your debt then the third thing I

[09:13] would say is do not pay minimum because

[09:15] if you pay minimum in your debt you're

[09:17] going to take longer to pay it off like

[09:19] even now I've shared this in many of my

[09:21] videos that when it comes to me paying

[09:23] off my house I do not pay minimum

[09:25] because I understand that if I pay

[09:28] minimum I'm going to take longer to pay

[09:30] off my house and so even with your debt

[09:32] if you're intentional about paying it

[09:34] off do not pay the minimum if the bank

[09:36] says that you pay 1,000 pay 1,500 if the

[09:40] bank says you pay 500 pay 1,000 make it

[09:44] in your budget that it allows you to pay

[09:47] an additional amount into your debt and

[09:50] this will help you to push your debt as

[09:51] much as possible now what I'm going to

[09:53] do is I'm going to film another video

[09:55] which is going to be a continuation of

[09:57] this talking about how to create a a

[09:59] 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]