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