How To Overcome Debt Problems [3 Cash-Flow Secrets To Conquering Debt]

– Debt problems. Well, they can destroy
families, they can destroy lives and totally destroy your financial future. They can cause tremendous
amounts of stress and leave you wondering how the heck did I ever even wind up here? In this video, you’re
not only going to learn how you wound up where you are, but more importantly,
you’re going to learn how to overcome your debt
problems once and for all and get back to where you belong, where you have the kind of hope in your financial future you should have. The kind of hope that
will finally bring you the peace of mind you deserve. And if creating hope and peace of mind about your financial
future is important to you, then you’re going to want
to subscribe to our channel and click that bell so you get notified when we publish new videos. We’ve been creating financial futures filled with hope and
peace of mind for decades. (upbeat rock music) Hi, I’m best-selling
personal finance author, Tony Manganiello. Since 1995, my business
partner, John Cummuta and I, have helped over three million people overcome their debt problems, and in this video, you’re going to learn three cash-flow secrets that summarize nearly
three decades of experience that will help you get on your way to conquering your debt
problems once and for all. And be sure to stick around until the end, because I have a bonus
cash-flow secret for you, as well as some additional information you’re going to want to check out, because this video, well, it’s just the
beginning of your journey back to restoring the hope you want for your financial future. Cash-flow secret number one is debt is a numbers game. Unfortunately, it’s a numbers game that very few people understand and most people are losing terribly. Now if you’re watching this video, you know, you may be losing
the numbers game too, and the reason you’re losing
the numbers game so badly is because of how you
look at those numbers. Let’s take a peak at a few examples. For these examples, you
bought a 25,000 dollar car with a five year loan at 8%, and you have a $506.91 monthly payment, and you bought a 205,000 dollar home, on a 30-year mortgage at 6.79%, with a 1,335 dollar a month payment. Now, you see that $506.91 a
month payment for your car, at 8%, you see that as
a 25,000 dollar car. Your lender, though, he
sees that as $30,414.60, in total payments, and a $5,414.60 profit. Now, who won that numbers game? Now you see your 1,335 dollar
30-year mortgage payments at 6.79%, you see that as
your 205,000 dollar home, your mortgage lender, he sees that as 480,600 dollars in total payments and a 275,600 dollar profit. Who won that one? You lose the debt number games because you focus on the
beginning of the game, you know, your budget and
making those payments, while your lender focuses on the end of the game, and your future income potential. You focus on how much you think you can afford to pay each month. You think as long as your
monthly payments total less than your net monthly income, you think you’re winning. When your lenders look at you, they don’t just look
at your monthly budget and things like your debt-to-income ratio, they look at you and see how much income potential you
represent for decades to come. If you’re bringing home 50 grand a year and your lenders are
focused on the hundreds and hundreds of thousands of dollars you’re going to bring home in the future, and their game plan centers around how much of that small fortune they can siphon off from you. If you want to win the debt numbers game, your game plan has to change from focusing on your monthly budget so you can make payments, to focusing on how much of the income you’re going to generate
for decades to come and how much of that small fortune you can keep as possible. Now if you’re willing to
change your game plan, instead of just focusing on
budgeting and paying bills, you’re going to start focusing on the hundreds of thousands of dollars in future income you’re going to generate and focus on keeping as much of that small fortune as you can, give me a “I’m changing my
game plan,” in the comments! Cash-flow secret number two
is debt is a wealth consumer. Here’s one of the definitions of debt from my book, The Debt-Free Millionaire: “Debt is the commitment of future, “non-guaranteed, yet-to-be-earned income, “for past or present purchases.” When you accept a payment plan based on any kind of debt, you’re promising away
future income to payments that are heavily weighted with interest. You’re focused on the
beginning of the game, you know, fitting those payments
into your monthly budget, and it causes you to miss the fact that those payments will siphon off about 50% or more of
gross income for years, perhaps decades to come. Let’s take a look at the
sample family from my book and see what their numbers look like. They have $238,274.30 in
total debt on their mortgage, a couple of cars and a
handful of credit cards. They’re making 2,575 dollars
a month in total payments and after they make their payments, they have 425 dollars left over. Because they have 425 dollars left over, they think they’re
winning the numbers game, what they’re not looking at is how much of their future wealth these payments will consume. I walk this through in detail in my How To Pay Off Debt Faster video, but here are the numbers. By the time they pay off all of this debt, including the interest, they will have paid a
total of $502,742.99. Now if that wasn’t bad enough that their 238,000 dollars
in debt is going to cost them over half a million dollars out of pocket, it gets worse. What makes it worse is that the over half million dollars that they’re going to pay
is paid with net income. So the question becomes how much do they have to gross so they can just bring
home the $502,742.99? Are you ready for this? The Fortunados need to gross $628,428.74. So their 238,000 in change in total debt will consume over 628,000 dollars of their future gross income. That’s more than two and a
half times what they owe. Now take a minute and think about how much you owe on, you know, your house, you have cars that you owe money on, how much do you owe on those? What’s the total credit
card debt you have? Do you have student loans that you owe? How much do you owe total? Now seriously, go on and take a moment and try to get that total in your head. It doesn’t have to be exact, just a ballpark figure. Now, once you’ve got that number, multiply it by 2.5, and that’s an estimate of how much of your future gross income will be consumed by debt payments. And this is why cash-flow
secret number two is debt is a wealth consumer. Fortunately, it doesn’t
have to be that way. Cash-flow secret number three is there is life after debt. For more than a quarter of a century, we’ve taught, you know, like I said, over three million people
how to conquer debt. We’ve showed them how to pay it all off in about seven years or less. I’m talking, you know, they’ve paid off their houses, their cars, their
credit cards, student loans, all of it, every single penny of debt, they’ve paid it all off in just a handful of years. Doing this has saved them over 100,000 dollars on average
or more in interest payments and then they’ve reclaimed thousands of dollars in monthly cash-flow, and we’ve showed them how to do this with the money they’re already making. Now this has been proven
over and over again, and you can do it too. The key to overcoming your debt problems is to understand how to redirect your current personal cash-flow. Now most people are familiar with the snowball method of debt elimination. It’s where you add some
extra cash on the payment of one of your debts, usually it’s the one with
the smallest balance, and you pay that off really fast, and when that debt is paid off, you add the payment from that debt to the extra cash that you started with, and you snowball that total onto the next payment for the next debt, and you keep doing this until all of your debt
is paid off completely and you’re totally debt-free. Now we’ve showed this method to millions of people, and it has changed their lives. Now the one problem
with that method though is you can’t live on debt freedom. I mean, eliminating those debt payments is just the beginning, because you also have to
accumulate some wealth so you’ll have cash to live off of when you want to quit working. The snowball method of debt elimination will help you get to a place where all that money you’re wasting on debt payments right now will be yours to save and
invest for your future. But, you know, after the
seven years, give or take, that it will take you to
become completely debt-free, you’ll have nothing saved for your future and you’re going to be
starting from scratch, and this leads me to your bonus cash-flow secret for this video. The bonus cash-flow secret is you can pay off debt and build tax-free wealth with the same dollars, at the same time. This means that every dollar you’re using to pay off your debt is also, simultaneously,
generating interest and dividens for your future. You’re probably completely unaware that this is even possible, and the reason for that is because to be able to use one
dollar to do two things requires a special kind of account. Remember my sample family, The Fortunados? Here’s what this kind of account will help them do. They’re going to be completely debt free in nine years and nine months, they’ll have saved over
169,000 dollars in interest, and by the time they’ve
paid off all of their debt, they have nearly 50,000
dollars in the special account, and using one of these accounts takes a little longer
to pay off your debt, but you wind up with tens
of thousands of dollars in the bank, in addition to reclaiming those thousands of dollars you’re wasting on debt
payments each month right now. Which would you rather be, debt-free and have all
those wasted debt payments back in your pocket each month or would you rather be debt-free, reclaim all those debt payments you’re wasting on debt each month and have tens of thousands
of dollars in the bank too? The difference between these two options is where you’re snowballing your payments. In the old way off paying off debt, you used to snowball your payments directly to your creditors, the problem though with this
old way of paying off debt is that once you write those checks and send it to your creditors, that money is gone for good. However, with one of
these special accounts, you redirect where you
snowball your payments and instead of snowballing
them to your creditors, where the money is gone for good, you snowball them into
this special account and it allows you to
use those same dollars for two purposes simultaneously. You can’t do that with
your bank checking account. These special accounts are
called private family banks, and you can find out
more about how they work and how simple they are to start by clicking on the link below and getting your hands on The Banker’s Secret to
Permanent Family Wealth, by my business partner, John Cummuta. In it, you’ll not only learn how simple it is to pay off all your debt and build tax-free wealth with the same dollars, at the same time, you’ll also learn how
you can be your own bank and build wealth while
finding major purchases like buying cars and taking vacations or even paying through your kid’s college. And you’ll learn why a private family bank is a better place to store your
cash than the stock market. And finally, you’ll learn
how a private family bank can help you build generational wealth, wealth like Mayor Rothschild
built for his family, and you’ll be able to leave behind a real legacy for your
kids and their kids, the kind of legacy that will have them hanging your portrait
over their fireplaces. Now we’ve been helping people start these awesome
accounts for nearly a decade, and they’re absolutely the most powerful personal financial tool we’ve ever seen. So, click the link below
and find out for yourself how they can help you transform the debt stress you’re feeling now into hope and financial peace
of mind for your future, the kind that you deserve. And when you’re clicking on that link, please, let me know if you like this video by clicking the like button, and if this video helped you, then you should subscribe to
our channel and click the bell. You see, all of our videos
are focused on helping you take total command of
your financial future and get you on the path to
true financial peace of mind. When it comes to your
financial peace of mind, let me know if there are any personal finance questions you have and just leave me a
question in the comments. You see, I read them every week and I will respond directly
to you as soon as I can. The one thing you should know
about debt problems though, is that they’re only temporary. Now I know it may be hard to believe when you’re going through
tough times like this, you know, that are brought about by debt and personal finance issues, but after years of helping
folks through debt problems, I promise you that there is a
light at the end of the tunnel and to get there, you
have to retrain your brain about how money works so you can avoid getting seduced into signing away your financial future. So, check out our Money Myth
Quick Start course videos. They’re guaranteed to
give you the perspective on your financial future you really need to succeed financially. Thanks for watching and
I’ll see you next time. (upbeat rock music)

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