Ever try a debt payoff plan only to end up
with more debt than you started? Tired of being on that hamster wheel of interest
and debt payments that won’t let you get out ahead? A survey by Money magazine found that two-in-three
Americans started a plan to pay off their debt in the last year and 60% failed for one
very important reason. By the end of this video, you’ll know what
causes people to be trapped by their debt and how you can break that cycle. In fact, I recently interviewed a friend that
used this strategy to pay off more than $30,000 in debt in less than three years as a single
mother and on an income of just $35,000. We’re talking debt payoff today on Let’s
Talk Money. Joseph Hogue here with the Let’s Talk Money
YouTube channel. Today starts a very important video series,
over the next couple of months we’ll be focusing on beating debt for our Monday videos. It’s going to be an entire series on ditching
your debt from creating those goals that are going to motivate you to some tricks I’ve
learned to pay off debt. Think of it like a TV series, at the end of
this season, you will have all the tools you need to finally get out from under that crushing
debt. You’ll be able to finally beat that cycle
of living paycheck to paycheck, having to borrow to make up the rest and then not having
enough money because it’s all going to interest payments. Make sure you click that little red subscribe
button so you don’t miss any of the episodes. I’ll also be putting these videos in a special
list in the Playlists section of the channel and link to it in the video description below
so you can watch the series in order. I’m excited about this series. The average American household owes more than
$50,000 and that’s not including mortgage debt. That’s about $15,000 in credit cards, around
$25,000 in student loans and $10,000 in personal loans. That means one in every five dollars you make
goes to making monthly debt payments. Just think about that. If someone came up to you and told you they
could give you a 20% raise…you’d be excited right? Your damn right you would! And that’s what’s going to happen when
you pay off that debt and one out of five dollars earned isn’t lost every month. You see, debt traps you into a cycle of living
paycheck to paycheck. If you’re losing 20% or more of your income
every month to debt, you sure as hell aren’t able to save up any money or invest it. It’s just a matter of time before an emergency
expense pushes you into bankruptcy. The worst part about debt though is that it
makes you a slave to the job. It means you NEED your job, no matter how
crappy it is or how much you hate it. You can’t take some time to find that job
you’re going to love. You’re going to spend a third of your life,
eight hours a day, miserable. That’s the real tragedy of being in debt. And that’s why I’m so excited to get started
on this series, to give you everything you need to beat your debt once and for all. And when I say everything, I mean everything. Besides a strategy I’ll be talking about
in this video to motivate you no matter how tough things get, in future videos I’ll
be showing you how to make saving money to pay off debt so easy it feels natural and
some tricks that will save you thousands in interest. So let’s talk about how to stay motivated
to pay off debt, how to be able to save money even when all your friends are going out,
how to make your debt payoff journey something that drives you. And that is so important here. Most people start trying to pay off debt by
making a budget or writing out all their debts. And how much fun does that sound like? That’s about as fun as getting your first
prostate exam. Not having that motivation to pay off debt
is the #1 reason people fail. It all but guarantees you fail at paying off
the debt because why the hell are you doing it? Oh you don’t want to be in debt, so what. You want to be able to save for your future,
what future? The very first step in your debt payoff plan
is setting those goals, creating the why for your debt payoff. Now I’m going to give you some ideas here
and we’ll talk about exactly how to do this in a second but it goes way beyond just making
some vague goals. We’re not talking about goals like, “I
want to be debt free,” or “I want to go on a vacation to Paris.” That’s a start but it’s not going to be
the motivation you need to keep saving, to keep on your debt plan and to pay off your
debt. Making your goals be your motivation means
making those goals real. We’re talking breaking down every part of
your goal, visualizing it, making it so real you can physically experience it. That’s no shit, I’ve worked with people
to visualize their goals almost to the point they felt like they were already there, to
the point of being able to feel the warmth of the sun and smell the ocean breeze. When you make your goals real like this, that’s
going to be 100-times more powerful than just saying, “I want to retire early.” Anytime you start to stray from your budget,
any time you get tired of paying off debt, you’re going to be able to take out this
mental picture and that experience of your goal is going to be all the motivation you
need. When our son was born, we had over $12,000
in credit card debt. The monthly payments were almost $500 and
I was worried about how we were going to pay for the necessities like formula and diapers,
not to mention all the things I wanted him to have. My goal wasn’t just to pay off the debt
so I could give him the opportunities I never had. My goal was sitting there at his graduation,
as he walks across the stage. It was remembering when we were able to get
him a tutor to help pass that math class. It was being able to afford the extra-curricular
activities that he loved doing and helped him build the self-confidence that I never
had. Those are the mental pictures I created to
make that my debt payoff real. And having that goal, those mental pictures,
helped me pay off that debt in less than two years. I’m going to walk you through how to make
those goals all the motivation you need. Use this step-by-step and you’ll never have
to worry about sticking to your plans. I want you to get a pen and piece of paper. Don’t just think of these in your head,
don’t just type them out on the computer. We’re going to write your goals out so they
become real. First, write down three big goals you have
in life. These can be retirement, your kids education,
that dream vacation, anything. We’re talking big picture here, you don’t
have to be too specific. In fact, as a commitment to yourself, scroll
down to the comments section under the video and tell us what one of your goals are. You can pause the video or just let it keep
playing but scroll down and commit to at least one of your goals by writing it out as a comment. Now for each one of those goals, you’re
going to imagine a story around it. Close your eyes and start building a picture. Hey, your eyes aren’t closed. I see you. So close your eyes and start creating that
story. If it’s retirement, where are you? What’s the weather like and what time of
year is it? What are you doing at that moment? What do you do every day that makes you happy? Another example, if your goal is your children’s
education, what university are they attending? Imagine them in class, what class is it? What’s their major? Now imagine them graduating and having the
world open up to them because they were able to go to that school. After the video, you’re going to write out
your picture for each of these goals. Be as specific as possible, down to the weather,
down to how you and the people around you feel. Next, take an honest look at your debt. How likely is it that any of those three goals
are going to happen if you can’t get out from under that debt? Are you going to be able to retire and live
that mental picture if you’re paying a grand a month on debt? You know the answer is no. So imagine how life is going to be if you
don’t stick with your debt payoff plan. You know how amazing it can be if you realize
those three goals, now imagine your life working into your 70s or imagine telling your daughter
she’s never going to have those opportunities. Imagine what her life will be like. Ok, that’s a huge downer. It doesn’t have to be depressing. You don’t have to imagine being trapped
under that debt if you commit to paying it off. Commit to using this debt payoff plan we’ll
be talking about in the video series on this channel. I know it doesn’t feel like you’ve made
progress on your debt yet but believe me, you just guaranteed your success. Creating that mental picture of your goals
is setting yourself up for success. That doesn’t mean it’ll be easy, following
the plan we’ll talk about and paying off your debt, but whenever you feel like you
need some motivation, you take out that mental picture. Go back to that sunny day, you’re sitting
on your back patio watching your grandkids play and talking with the neighbor. Go back to your son’s classroom where they’re
getting the opportunities that you never had. These mental pictures are going to motivate
you to stick to your debt payoff plan and you’ll be happy every second of it. Our next video in the debt payoff plan series
is going to be about the most boring subject in personal finance, budgeting, but here’s
why you won’t want to miss it. I’ve got one strategy, just one easy trick,
that is going to make budgeting easy. It’s going to help you find money in your
budget to pay off debt faster and you won’t have to skimp and save every penny. Make sure you click on that subscribe button
so you don’t miss the rest of the videos. Click on the link just below this video to
watch the entire debt payoff plan and get out from under your debt.