Stop The Insanity: How To Beat Debt Faster

Americans are swamped in $1 trillion of combined credit card debt, and they pay over $1200 a year on interest. In Australia, it’s not much better. If a person makes $80,000 a year, they end up spending more than $160,000 in that same year.

What if there was a different way? What if you could get out of the cycle of debt and Live Within Your Means comfortably?

The problem is the advice you get from most financial coaches is all wrong. They tell you to work towards Freedom from debt. They might think that’s good advice, but it’s not. Because that approach just doesn’t work. 

If you choose a financial coach randomly, they’ll likely tell you that the secret to defeating debt is paying back your highest interest rate loans first. Logically, that makes sense. I mean, we spend huge amounts of money on interest, so paying off high interest rate loans first should get us debt free faster. Right?

Insanity: Doing The Same Thing Over And Over Again, Expecting The Same Result

Wrong. Because that advice just doesn’t work. The majority of people in the 96% live with thousands of dollars of debt, from car payments to student loans to credit card debt. That debt is just sitting there, hanging on, while they continue to add more debt, because they can’t break the cycle.

It Turns Out Humans Need Rewards

There is 1 comment

  • Dee on July 21, 2017 at 1:37 am

    The smartest way to reduce Debt Fast is to Invest. Get a tax break on the interest expense and use the investment return to either pay down debt whose interest charge is greater than your investment earnings or reinvest to generate compound returns. Note: The debt when interest is paid does not increase – the interest stays the same year after year. It can even be smart to compound a lower yielding investment and not pay down debt in order to have more money compounding. Over time the compounding will eclipse the fixed interest of the loans

Post a new comment