How To Get Out Of Debt Fast


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

43 thoughts on “How To Get Out Of Debt Fast

  1. Nice touch of comedy in the video lol. Referring to my last comment in a different video, what's the best way for a average person to start investing outside of my back yard and finding the correct market. I have filled out the my info in your provided link a few time but have not heard back.
    Thanks again for another great video

  2. Okey how do I get a sufficient loan? I mean here in europe people cant really lend from banks atleast not that much

  3. Live your channel. Very positive information. I can't find your video of how to buy a house with video with equity

  4. Hi Kris, i gave you my info a couple of weeks ago, havent heard anything.. for the wealth intensive in real estate

  5. Eye opening! Never considered creating passive income streams while having debt. I was going to take the "scorch the earth" Dave Ramsey approach to this.

  6. I just love your channel. I have a studen loan like everybody else Lol, and I kept stressing trying to pay it off and sacrificing so much but it's so true. Why pay off the debt it's part of the show. Your way is awesome thank you so much. 👍🏻

  7. Everything's sounds great 👍BUT how do you do it with bad credit? Most people who are in over their head are late with payments etc. so riddle me that?

  8. This is great but there aren't any homes in California to do this. In my area you can't buy a home for under the asking price. 🙁

  9. When he says "you can't retire on no debt", do he mean consumer debt or business debt?..I know a few older people who are retired and debt free , and they just live on savings, 401k, social security etc… just curious.

  10. I personally knew someone who bought multiple rental properties mortgaged up, then real estate and economy crashed in Florida in 2008 and renters squatted without paying rent. She was faced with long frustrating court cases that ended up futile. She lost everything, even her own home that she lived in.
    So his advise could work out, but who really thinks this world economy will ride for 15-30 years? The next recession could find you in same situation if you try this strategy. Know all the possibilities for your situation and cross your fingers. No gain is not without risk.

  11. I liked your channel til I watched this video. There is no difference in what you just explained and going to a casino, except maybe less risk…… or a lot less risk.

    The getting out of debt method first is, from a worldly standpoint, is about discipline and not taking risks that may bite you when you don't have the money to back it. From a spiritual standpoint, it's about honoring ones beliefs.

    Maybe am a fuddy dud but I will be much happier when I'm out of debt and have money in the bank to back an investment that may not have worked out wonderfully.

    And….. nice way of saying that this is the sophisticated way of getting out of debt. Because the getting out of debt first is the dumb way.

    Dumb, which includes I, is getting in debt in the first place………

    If nothing changes, nothing changes.

  12. I'm afraid I can see a few flaws in your plan.
    1. Property prices fluctuate there is a very real risk of the economy entering a recession and property values decreasing this could leave you in a position of negative equity if you wish to sell the property.
    2. What interest rates can decrease they can also increase significantly. Unless you have a fixed rate plan you are at risk of having your monthly repayments double or treble.
    3. You can only receive a regular income from a property if you're tenants pay their rent. This does not take into account void periods or bad tenants who default on payments.
    4. You could be fully responsible for any repairs and maintenance on the property which could run into thousands of Dollars depending on the severity of the issue.

    The Dave Ramsey plan does include setting aside income for retirement once you are out of debt so to say that this is not taken into consideration is incorrect.

    I would be interested to hear your comments about the points raised above. Thank you.

  13. I would love to get a loan on a home to start making money to get out of debt but theres two problems.
    1. How are you supposed to make a 20% down payment on an investment property if youre in debt? Us folks that have a bunch of bad debt dont have savings (thats why we are in debt) and we would like to save but we cant until we can get control of our debt.
    2. Our debt to income will not allow for a loan. For many (not all) of us who have worrying debt, the reason is because of low income. If we cant get a loan to buy an investment how are we supposed do get out of debt.

    I wish this video would have helped me but unfortuately my debt prevents for a home loan with a 20% down payment for an investment property. I wish it were that easy 🙁

  14. I appreciate what you said about budgeting in another video. But you missqouted Dave Ramsey. He has never stated to pay off credit by interest rates but to pay off from the smaller debts to the largest, thus creating a debt snow ball. He is going off the Bible where it state's "the borrower is slave to the lender." While you are paying them monthly if all your loans become due b/c the banks get scared or you are over leveraged then you will go bankrupt. It is better to pay your debts off quickly (gazelle intense in 2-3 years or less) then to hold on to debt. 2-3 years will not hurt you if at the end you are debt free & then invest more money than you could with debt & w/ out getting a partner. Just saying please quote the correct information. Otherwise, I liked some of what you have said.

  15. I just want to point out a few research flaws in the video.
    1. Ramsey does not suggest paying off debt based on interest rate. It's based on loan balance.
    2. Paying off debt is literally 1/7th of the baby steps, so your assertion that it's the majority of his work is false. It's important, but not the only goal.
    3. The Ramsey plan states that if it takes more than 2 years to get out of debt, you're doing something wrong. So the assertion of it taking multiple years is incorrect. He would suggest other options at that point to move past debt quickly.
    4. You are assuming that after you get out of debt it is time to retire. That might be the case for some, but not nearly most people watching this video (younger and more energetic). I would place this assertion in the salesman category (spilling a tale to get a false picture to come across as clear truth). It's more of a feeling than you being wrong, but I'm sure it's not the picture you would want to pose on customers.

    Why am I telling you this? It's a critic if the video and nothing more. I'm not shooting down your method of becoming successful, because it seems to have worked. You did not do much research to try shooting down another successful entrepreneur. All I needed to do was read one book to know the above facts. It's easily done by reading any summary of the baby steps too.
    My suggestion is to take the research side of promotional videos more seriously, especially when you are trying to tear someone else down for not being sophisticated or thorough. It will broadcast a better image.
    Best of skill.

  16. This is so stupid. Like laughably so.

    Dave's philosophy is behavioural economics. It's based off of his obemservations on general trends over 30 years + research + wisdom from earlier generations.

    I feel like a lot of financial gurus that say that debt is ok are looking at much smaller time scales and limited sample sizes. Esp. In this bull market, debt can see like a good idea. ,but it is just a way of increasing risk. And I don't think this is presenting a fair view of risk .

  17. Interesting video. I don't think you necessarily have to take all the advice from every millionaire. Maybe bits and pieces and see what works for you. And I hope you were able to get a new battery put in your smoke detector.

  18. one of the problems that they don't tell you about is that when you take two steps back you don't always take 10 steps forward. And that's how lot of people become bankrupt or homeless.

  19. I got 26 credit cards and over 150 grand I total credit line AnD owe $40 bucks all together! I live on $800 a month disbilty check! How are others in Dept is beyond me

  20. Hey Kris , I’ve been learning so much information through your videos , and i have a question for you. Right now i have a car loan,and i have it for 6 years on it until i pay it off. Ive try to purchase a house but they told me i could not get approve because i have a debt on the vehicle, and my question that i have is , what can i do to purchase a home if i still have the car lone ?

  21. Not all real state give earnings like that , I sold a house 2 years ago and after paying 14k in commissions I was left with nothing

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