How To Pay Off Debt FAST On a Low Income

[00:00] The things I'm telling you is to help

[00:01] you try to avoid the problems and

[00:03] mistakes and issues that I made when I

[00:05] was trying to get out of debt. Paying

[00:06] off debt fast, it takes more than just a

[00:09] simple plan. It takes you being

[00:11] disciplined. It takes you being

[00:13] committed. It takes you being focused.

[00:15] It takes you focusing on a strategy, not

[00:18] just words and talk. It's a serious

[00:20] endeavor. It's not something that you

[00:22] can just do lightly or take lightly. Cuz

[00:24] if you take debt lightly, debt is going

[00:25] to hang around your neck for a long

[00:27] time. Now, with a low income, it means

[00:29] you got to be ultra focused, right?

[00:30] Because you don't have a lot of margin

[00:32] for error. You don't have a lot of extra

[00:34] money to play around with and joke

[00:36] around with and have fun with and make

[00:37] mistakes with. You got to be focused

[00:39] with the little bit of money you do

[00:40] have. Guys, can you really wipe out

[00:42] thousands of dollars worth of debt on a

[00:44] low income? The answer is yes. You

[00:47] really can. Now, on this quick video

[00:48] I'm going to show you exactly how. Now

[00:50] here's the kicker, though. You got to do

[00:51] a, few, things,, right?, It's, going to, be

[00:53] hard. It's going to be tough, but it's

[00:54] very, very possible. I know many, many

[00:56] people who've done it. They paid off

[00:58] thousands, tens of thousands of dollars

[01:00] in debt and didn't make very much money

[01:02] but they got focused and dedicated. So

[01:04] let's just jump right into it. The very

[01:05] first thing you got to do is take

[01:06] inventory of what you owe, right? You

[01:09] have to stop pushing the debt underneath

[01:11] the rug, right? You got to face the

[01:13] music. You have to list your debts, all

[01:16] the things that you owe on a piece of

[01:18] paper. Just list them. And you can list

[01:19] them. This is how I would do it. I would

[01:21] list them from the least I owe, the ones

[01:24] with the smallest balance, to the most

[01:26] that I owe in a straight line. Now

[01:29] listen, we're talking about on this

[01:30] video bad debt, right? Things that you

[01:33] owe money on that's going down in value

[01:35] depreciating items. We're not talking

[01:37] about real estate, rental properties

[01:40] commercial property, right? We're not

[01:41] talking about anything like that. We're

[01:42] talking about things that you owe that

[01:44] are going down in value. The credit

[01:46] cards, the student loans, the medical

[01:48] bills, right? the payday loans, the the

[01:51] personal loans, the bank loans. Listen

[01:53] the things that are not going up in

[01:55] value. If it's not going up in value

[01:57] that's what we're talking about on this

[01:58] video. So, first things first is figure

[02:00] out what you owe. Now, I don't really

[02:02] care about the interest rate, right?

[02:03] Listed them from the biggest interest

[02:05] rate to the lowest because if you're

[02:06] trying to pay off debt fast, the

[02:08] interest rate doesn't matter as much.

[02:11] The interest rate is not as important

[02:12] right? Whether it's 10%, 20%, 5%, if

[02:15] you're going to pay it off in a year or

[02:17] two or three, it doesn't matter. It

[02:19] really doesn't matter if you save a

[02:20] hundred or $200 over the course of a

[02:23] year or two, right? So, I don't care

[02:25] about you listing your debts highest

[02:27] interest rate. Just list them from the

[02:29] ones that you owe the least on to the

[02:31] ones that you owe the most on straight

[02:33] down on a piece of paper. Right? Part of

[02:35] the big problem is that some people

[02:36] they really don't even know what they

[02:37] owe. They're scared to look at it. They

[02:39] just know, hey, I owe some money and I'm

[02:41] not really sure how much. And you just

[02:42] have this fear of actually facing what

[02:45] you actually owe. But you got to get

[02:47] over that, right? You got to get past

[02:49] that point where you don't want to look

[02:51] at it. Okay, those days are over because

[02:52] anything that you want to fix, you have

[02:54] to understand what the issue is. You got

[02:57] to understand the problem. In other

[02:58] words, you can't fix a problem until you

[02:59] face a problem. That means you got to

[03:01] know what you owe. That's the very first

[03:03] thing, right? If me and you were having

[03:04] a conversation, I say, "Well, how much

[03:06] debt do you have that's on depreciating

[03:08] things?", You, ought, to, be able, to, tell

[03:09] me "Okay 40,000

[03:11] 23,000, 17,000." You should know that

[03:13] off the top, right? That's the first

[03:15] thing you got to do if you're trying to

[03:17] attack this debt fast. Now, the second

[03:19] thing that I suggest you do is to call

[03:22] your creditors and see if there's any

[03:24] way possible that you could settle. And

[03:27] when I say settle, I mean you owe $5,000

[03:30] on a medical bill. Maybe if you pay in

[03:32] the next 3 months or so, they'll knock

[03:33] that down to

[03:34] $3,500. Sometimes, specifically medical

[03:37] bills, sometimes you have a old creditor

[03:40] that's been hanging around for a while

[03:41] that you can actually settle with. for

[03:43] sometimes, you know, half the amount

[03:46] threequarters of the amount, right? I

[03:48] can't say really pennies on the dollar

[03:49] because that's going to be hard to come

[03:51] by. But you got to call them. So, first

[03:53] thing is list them and you have them

[03:54] listed. You know who they are. Then give

[03:56] them a call and say, "Look, can I don't

[03:58] have very much money. I don't make very

[04:00] much money, but you know, can I actually

[04:02] pay uh this amount on this instead of

[04:04] paying that amount if I pay it at a

[04:05] certain time?" Sometimes your creditors

[04:07] they will actually welcome that because

[04:09] it says, hey, we're going to get some of

[04:10] our money. They may not be able to get

[04:12] all their money, but maybe they can get

[04:13] some of their money. So, it's just an

[04:15] option that you should consider if you

[04:17] have these debts laying around, right? I

[04:18] know it's kind of far-fetched for some

[04:20] creditors, but you just never know. It

[04:23] could be a 5minute phone call. They

[04:24] could knock thousands of dollars off the

[04:26] debt you owe. I say it's worth a shot.

[04:28] If you got to spend 3 hours calling all

[04:30] of your creditors to see if you can

[04:32] negotiate a lower price or a lower

[04:34] amount that you owe, why not do it? It's

[04:36] not, going to, hurt, you., It's, just, it's

[04:37] just two or three hours that could save

[04:39] you thousands. Now, just to sort of get

[04:40] this out the way up front because people

[04:42] ask me this all the time. Should I

[04:44] consolidate my debt? Listen, my opinion

[04:46] is you don't really need to consolidate

[04:48] your debt unless you are you plan on

[04:51] this taking out four, 5, 6, 8, 10 years?

[04:54] If you try to do this thing fast and you

[04:56] pay off this debt quick, you're just

[04:57] playing a shell game really with your

[04:59] debt, right? You're moving it from here

[05:01] to here to here to here just so you can

[05:03] get a a quarter of a percentage off of

[05:05] the interest rate or half percentage off

[05:07] or two or 3%. Look, you're trying to do

[05:09] this thing fast. Again, the interest

[05:11] rate doesn't matter. And so therefore, I

[05:13] would not consolidate in most cases.

[05:16] Now, if you owe $300,000 in student loan

[05:19] debt and you know it's going to take you

[05:21] about four or five years, maybe you

[05:23] should consolidate in that instance

[05:24] because the interest you save over four

[05:26] or five years might be significant

[05:28] enough to make a difference. But

[05:30] otherwise, for most debts, just go ahead

[05:32] and pay them things off and don't

[05:33] consolidate it, right? Sometimes we like

[05:35] to kind of move things around and think

[05:37] we're really doing something different

[05:39] or special or wonderful. And not

[05:40] necessarily. Sometimes instead of making

[05:43] the thing softer and easy for you when

[05:44] you're trying to pay off debt, make it

[05:46] hard. The harder you make it, the more

[05:48] desperate you get and the faster you

[05:50] move and the more urgency you have. So

[05:52] psychologically, you want to force

[05:54] yourself to be in a hurry to pay this

[05:56] off, right? You want to force yourself

[05:59] to do this thing fast. And the best way

[06:01] to force yourself to do this thing fast

[06:03] is not worry about consolidating

[06:06] interest rates, putting this. No, just

[06:07] go ahead and pay it off. Get it done

[06:09] right. No excuses to drag this thing out

[06:12] further than you have to drag it out.

[06:14] That's just my opinion. You got to make

[06:15] it hurt sometime. If you don't make it

[06:17] hurt and it's too easy and you just

[06:19] chilling cuz you consolidated here and

[06:21] you move some there, you're going to be

[06:23] 5 years down the road, 10 years down the

[06:25] road, 20 and still struggling with debt.

[06:27] Guys, if you're getting any value from

[06:28] this video, do me a favor. Smash the

[06:30] like button and most of all share this

[06:32] video with someone who you know could

[06:34] use this valuable information. Also

[06:36] please drop me a comment below and let

[06:39] me know your thoughts. Now, let's get

[06:40] back to the video. So, now you've taken

[06:42] inventory of what you owe. You know

[06:44] exactly what you owe. You've listed them

[06:46] out. You've called everybody to see if

[06:48] you there's a settlement amount that you

[06:50] could pay a little less on. And now you

[06:51] have to think about how much money do

[06:53] you have extra every single month to

[06:55] actually go towards the debt? Because

[06:57] now you want to start paying on the

[06:59] debt. And you want to pay as big a

[07:01] chunks as possible on the debt so you

[07:03] can pay it off as fast as possible.

[07:05] Listen, there's no uh magic formula to

[07:08] what I'm trying to explain to you.

[07:09] There's no uh uh special thing that you

[07:11] can invest in and do this and and try to

[07:14] No, you got to actually pay it off

[07:15] right? And to pay it off, you got to put

[07:17] as much money as possible towards it.

[07:20] And so that means you have to do a

[07:22] budget. And when you do a budget, you

[07:24] might have to do this for a couple of

[07:25] months so you can figure out how much

[07:27] you have. But when you do a budget

[07:28] income and expenses, you need to figure

[07:30] out how much extra each month that you

[07:33] have to go towards the debt. Right? So

[07:35] that's number three. Look at a budget.

[07:37] Look at your budget and figure out how

[07:39] much you have that you can dedicate to

[07:42] paying off your debt every single month.

[07:44] For some of you, it may be $150 you have

[07:46] left over. For some for others, it may

[07:48] be $1,000 you have left over, $2,000

[07:52] that you have left over every month that

[07:53] you can plow towards your bad debt. And

[07:56] again, if you've never done a budget

[07:58] before, you may have to do a budget so

[08:00] you can figure out what this amount is.

[08:01] And let me say this, once you figure out

[08:04] that amount of money that you have left

[08:05] over every single month to put towards

[08:07] your debt, you need to now take that

[08:09] amount and on your next budget, maybe

[08:11] the second or third month, the next

[08:12] budget, you need to put that amount at

[08:15] the top of the budget, right? So just

[08:17] under giving and tithes and food and

[08:21] rent, you need to have debt payoff. And

[08:24] then you need to take that amount, put

[08:25] it at the top of your budget, call it

[08:27] debt payoff, and that becomes a bill

[08:30] just like your lights, water, and gas

[08:33] just like your car payment, just like

[08:35] anything else you do. It becomes a bill.

[08:38] And so now you have a set amount because

[08:40] you figured this out over a couple

[08:41] months how much money you have to

[08:43] actually put towards debt. You take that

[08:45] amount and you don't just Here's what

[08:47] you don't do. You don't pay all your

[08:49] bills and then whatever's left, you pay

[08:51] on debt. No, I don't want you to do

[08:53] that. I want you because you're trying

[08:54] to do this thing fast and you got to

[08:56] have a sense of urgency, right? You got

[08:58] to hurry this thing up. So, take the

[09:00] amount that you have left every month

[09:02] put it at the top of the budget, just

[09:04] like a bill, and write it into your

[09:06] budget every single month because you're

[09:08] doing a budget that's zerobased. And a

[09:11] zerobased budget just means you spend

[09:13] all your money on paper first, right?

[09:15] All the money you know that's coming in

[09:16] for income, you spend it. One of those

[09:19] major expenses that goes at the top with

[09:21] your other needs is debt payoff. Now

[09:24] the fourth thing is this. You use the

[09:26] debt snowball. What is the debt

[09:28] snowball? The debt snowball is an easy

[09:31] way to pay off your debt. All you have

[09:34] to do with the debt snowball is take

[09:36] that amount that you put at the top of

[09:38] the budget that you have to put your

[09:40] towards your debts every month. You take

[09:42] that amount and you apply it towards

[09:45] your smallest debt. Remember, you listed

[09:47] your debts from smallest to largest. You

[09:49] take that amount. Let's say that amount

[09:50] is $500 every month. You take that $500

[09:54] and you put it towards your smallest

[09:56] debt. Let's say your smallest debt is

[09:57] paying $100 a month on a credit card.

[09:59] Now you pay $600 a month on that credit

[10:02] card until it's paid off. Then you take

[10:06] the $500 extra plus the $100 you were

[10:09] putting towards that first debt, $600.

[10:12] You take that $600 and you put it

[10:14] towards the second debt until the second

[10:17] debt is paid off. How however many

[10:19] months that could be, right? And then

[10:20] you take all the money you was paying on

[10:22] debt number one, $100 a month. The money

[10:25] you were paying on debt number two, and

[10:27] plus the extra $500, whatever that roll

[10:29] up amount was is going to be, maybe $7

[10:31] $800. You take that $7, $800, you put it

[10:35] towards the third debt, and you keep

[10:37] going down the list of all of your debts

[10:40] and putting all the money you have, the

[10:42] extra money you got at the top of your

[10:43] budget, plus the regular amounts you

[10:45] were you were actually paying on those

[10:47] the monthly amount you were paying on

[10:48] those, debt number 1, 2, and three, and

[10:50] you roll it all over to the next date.

[10:52] And you keep doing this until you pay

[10:53] all the debts off. That's the debt

[10:55] snowball. Right? Now remember with the

[10:57] debt snowball, you're still paying the

[10:58] minimum on all of your debts. As you pay

[11:02] them off, it's pretty cut and dry

[11:03] right? But it also begins to move very

[11:05] quickly once you get through a few of

[11:07] these debts. It goes starts going fast.

[11:09] Next thing you know, you're putting

[11:11] 11200 13 $1,400 towards one debt until

[11:15] you pay it off. It works. It really

[11:17] really works. Now, why is it called the

[11:19] snowball? Just like a snowball rolls

[11:20] downhill and gets bigger and bigger and

[11:22] bigger as it picks up extra stuff, extra

[11:24] money in this case. That's the same

[11:26] thing the debt snowball is doing. The

[11:27] debt snowball is giving you a faster way

[11:29] to get some momentum to pay off your

[11:32] debts. And when you start doing this

[11:33] thing fast, guys, interest rates doesn't

[11:35] matter, right? Because you're going to

[11:37] be doing it. You're going to be paying

[11:38] $1,500, $2,000 a month towards a credit

[11:40] card eventually, and you're going to pay

[11:42] it off quick. Now during this whole

[11:44] process you got to be looking for extra

[11:46] ways to make additional money that you

[11:48] can put towards the debt snowball right

[11:50] so maybe it's a side gig a side hustle

[11:52] and it also means that during this time

[11:54] you're not spending extra money on

[11:56] vacations right you're not for this two

[11:58] or three years you're getting out of

[11:59] debt fast on this low income you don't

[12:01] have a lot of extra money to go kick it

[12:03] you don't have a lot of extra money to

[12:04] eat out all the time you don't have a

[12:06] lot, of, extra, money, to, go, do, some, of the

[12:08] leisure things you really enjoy and love

[12:09] doing right you just don't have $2,000

[12:11] $3,000 to go hang out in Cancun. You can

[12:14] do that when you finish getting out of

[12:16] debt fast, right? Cuz you got to be

[12:17] dedicated to this process. Paying off

[12:20] debt fast, it takes more than just a

[12:22] simple plan. It takes you being

[12:24] disciplined. It takes you being

[12:26] committed. It takes you being focused.

[12:28] It takes you focusing on a strategy, not

[12:31] just words and talk. It takes you taking

[12:33] and trying to get extra money to pile on

[12:36] top of this debt. Right? It's a serious

[12:38] endeavor. It's not something that you

[12:39] can just do lightly or take lightly

[12:41] because if you take debt lightly, debt

[12:43] is going to hang around your neck for a

[12:45] long time, right? So, you got to have

[12:46] the mindset and you got to develop the

[12:48] habits along the way. It's difficult

[12:50] right? You got to have these habits that

[12:52] are going to get you to the next level.

[12:54] You can't do what you've always done

[12:55] with your money. If you're trying to get

[12:56] out of debt fast, you got to do

[12:58] something different. So, you got to be

[12:59] determined and not be discouraged. You

[13:01] have to be patient. But at the same

[13:03] time, while you're being patient with

[13:05] yourself in the process, you got to be

[13:07] urgent in terms of what you're doing.

[13:08] You got to be in a hurry to pay off debt

[13:10] fast. You cannot afford to be uh

[13:13] distracted and lolly gag and take your

[13:16] time. You got to ignore what other

[13:17] people are doing and what other people

[13:19] are buying or the vacations that other

[13:21] people are going on. You got to sort of

[13:22] ignore that and have some tunnel vision

[13:25] so you can stay laser focused on the

[13:28] goal of getting out of debt fast even

[13:30] when you're on a low income. Now, with a

[13:32] low income, it means you got to be ultra

[13:33] focused, right? Because you don't have a

[13:35] lot of margin for error. You don't have

[13:37] a lot of extra money to play around with

[13:39] and joke around with and have fun with

[13:40] and make mistakes with. You got to be

[13:42] focused with the little bit of money you

[13:44] do have. But it's about a a growth

[13:46] mindset. It's about understanding and

[13:48] embracing a process, right?

[13:50] Self-improvement, being encouraged

[13:52] being motivated, right? Being inspired

[13:54] to do something different. And if you

[13:56] mess up, because we all mess up. It's

[13:58] true. We all make mistakes when we're

[14:00] trying to get out of debt. Now, it took

[14:01] me a long time to get out of debt. Like

[14:03] a long time. The things I'm telling you

[14:05] is to help you try to avoid the problems

[14:07] and mistakes and issues that I made when

[14:09] I was trying to get out of debt, right?

[14:11] I don't want it to take you 30 years to

[14:13] get out of debt. I want you getting out

[14:14] of debt in three years. So, don't do

[14:16] what I did, right? So, if you mess up

[14:18] don't quit. Get back on the right path

[14:20] and keep going going. Don't look back

[14:22] and don't wallow in your past and worry

[14:24] about what you did and didn't do. Learn

[14:26] from your mistakes. Make the adjustments

[14:28] and just keep moving forward. So, it's

[14:30] all about behaviors if you want to get

[14:32] out of debt fast, especially on a low

[14:34] income, right? So, you're listing all

[14:36] your debts from smallest to largest.

[14:39] Smallest at the top, largest at the

[14:41] bottom. And then you're doing a budget

[14:43] to figure out, okay, how much extra

[14:45] money do I have every month that I could

[14:46] dedicate towards this debt. Then you're

[14:48] taking that amount, putting at the top

[14:50] of your budget for the next month or

[14:52] month and beyond. You're putting that

[14:53] money at the top of the budget. Call it

[14:55] debt payoff, whatever you want to call

[14:57] it. Put it up there next to food. At the

[14:59] same time, make sure that to get to that

[15:00] figure, you're cutting your expenses as

[15:02] much as possible as well, right? And

[15:04] then in the process of doing the debt

[15:07] snowball, do what you can to boost your

[15:10] actual income, extra money, and take

[15:12] that extra money, include it in the

[15:14] amount that you put at the top of your

[15:16] budget if you have extra money or extra

[15:18] income. And on the way, be sure to

[15:19] celebrate some small wins. Man, listen

[15:22] this is a process. It's a long process.

[15:24] It can be stressful. It can be hard. It

[15:26] can be tough. It can be difficult. But

[15:28] guess what? When you pay off that first

[15:30] debt, maybe you take and and take

[15:32] yourself out to out to eat somewhere.

[15:33] Maybe you go to a movie. Maybe you do

[15:35] something special for yourself. You

[15:36] know, spending a little bit of money to

[15:38] do something for yourself so you can

[15:40] celebrate these small wins because it's

[15:42] a small win every time you pay off a

[15:44] debt. It's a small win. And so if you

[15:47] pay off four, five, six debts, you need

[15:49] to be celebrating because every time you

[15:51] pay off a debt, you get one step out of

[15:53] that matrix and you also get that same

[15:56] step towards financial freedom, right?

[15:58] Just make sure you celebrate wisely and

[16:00] keep your energy high. Listen, this is

[16:02] how you get out of debt fast. It's no

[16:05] special miracles. There's no special

[16:07] thing to that you got to make sure you

[16:09] do. There's no pay off debt tomorrow

[16:11] special thing. It's a process and you

[16:14] got to buy into it and you have to focus

[16:16] on it, but it can be done. It just takes

[16:19] strategy. So, yeah, you really can wipe

[16:22] out tens of thousands of dollars of debt

[16:24] on a low income and you can do it fast.

[16:27] But it's up to you, right? You got to do

[16:29] it. Hey guys, do me a favor. Share this

[16:31] video with somebody who you know needs

[16:33] to hear it. Somebody that may be in debt

[16:36] and wanting to get out of debt or

[16:37] needing to get out of debt as soon as

[16:39] possible because these principles

[16:40] actually work for anybody. whether you

[16:42] own a low income or not a low income.

[16:43] So, please share the video. Smash that

[16:46] like button below and drop me a comment.

[16:48] Let me know if you're out of debt. How

[16:49] did you get out of debt? Did you do it

[16:51] fast or did it take a long time? Let me

[16:53] know in the comment section below. Guys

[16:54] if you want to be rich, you don't have

[16:56] to start a business. You don't have to

[16:58] be an entrepreneur. Everybody doesn't

[16:59] want to have their own business. Totally

[17:00] understandable. So, if you want to build

[17:02] wealth instead of starting a business, I

[17:04] recently did a video talking about what

[17:06] you can do instead of starting a

[17:07] business if you want to get rich. Check

[17:08] out that video right here. Next base.