Financial guru expert offers practical advice on erasing debt.
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00:00You have to face it to erase it.
00:02You need to tell every single person you know
00:04how much credit card debt you have.
00:06Because if you have credit card debt,
00:09you have been paying for your present day desires,
00:13but your costs are going to be your future day needs.
00:17And everybody thinks that you have money
00:19because you go out and you put it on a credit card
00:21and you treat your friends and you've just leased a car
00:24and you've done all these things.
00:25If you have credit card debt
00:28and people don't know you have credit card debt,
00:30you are a financial liar.
00:33So the way that you turn debt around
00:36is to first stand in your truth
00:39and tell everybody that you have debt.
00:41So they'll stop asking you to go out to eat
00:43and do all these things because you cannot afford it.
00:46I think your number one priority
00:48really should be getting out of debt,
00:50especially with interest rates as high as they are.
00:54So it's ridiculous right now
00:55to have money in a savings account,
00:58maybe giving you 4% if it's a money market fund
01:01or something like that.
01:02And be paying 15, 16, 17% non-tax deductible
01:06on credit cards.
01:08You would be far better off getting rid
01:10of your credit cards than saving.
01:12And if all of a sudden you need some money
01:14and you've been bringing down your credit
01:16or your debt on your credit cards,
01:18you can always use your credit cards again
01:20to make up for that.
01:22You have to get more pleasure out of saving
01:24than you do spending.
01:26So what I would tell you to do is,
01:28number one, you need to live below your means,
01:32not within your means, but below your means,
01:35but within your needs.
01:37What is a need?
01:38A need is medicine.
01:40A need is food at a grocery store.
01:42A need is gasoline in your car so you can get to work.
01:47So you live below your means, but within your needs.
01:52If you don't need it, just don't buy it.
01:55It's just that simple.
01:56And if you were to do that for at least six months,
02:00you would be surprised at how your entire
02:02financial situation has turned around.