How to pay off your credit card debt in record time! - Mentor To Millions CEO, Brian Beane

this is called a bloody mess you got to know how to calculate this this is the hidden secret to your revolving debt I did a webinar this week where I just beat up beat revolving debt up as some people email me they went and paid their cars off the next day somebody emailed me a few people Brian the after seeing that webinar I just went there just paid it off made them that mad am I good because what you did you cut in today game plan they thought they were going to make X but you've been here just knock it off make sense now he did he paid his car off which I'm fine with that but the webinar was about revolving debt that this is what kills you installment debt is paid off last revolving debt you pay off when that revolving debt got to go revolving debt is a debt without a plan installment that means you only have this for a certain term make sense usually on the term the interest rate should be low okay some people do the credit issues and stuff even that can be high but revolving that typically your interest rate is really where high because they got to make the money why they can before you fill up the car so they're going to hit you for as much interest as possible because your debtor is revolving when you pay it off you run it right back with pay it off from the right back work so the interest rate is separately higher but when you understand this you'll think twice about revolving debt is everyone ready this is called the bloody mess the bloody mess line at the top interests is the penalty you pay for the right to own something in advance that you cannot afford who that's the tipping point that was a tipping point in my adult life when I heard that I just heard that about four years ago interest is the penalty you pay for the right to own something in advance that you cannot afford what you're saying is I wanted that bad I'm willing to pay more for it than it's worth I hope I hope you really want it because now that you understand interest and it's the eighth wonder to what you're not paying for it the way you think you are let me tell you something if you have high interest you paying twice you're paying the interest that's going forever into somebody making somebody else somewhere I explain that right but you know Joss are doing the interest that went into making somebody else money it's called lost opportunity cost that's the money that you not invest in so they hit you twice because of that interest making compound interest or money for them was making compound for you that's why interest is the worst thing in the world on revolving debt because it's a double whammy they making money and you bleed that's why I got all this email Brian I went and just paid it off thank you but your involvement that got to go man you got to get pissed about this here we go the bloody mess you owe $5,000 on a credit card is that a balance that you think most Americans that I did I exaggerate that's doable right you can do five thousand dollars on a Disney vacation with your kids and that's before you come back home okay five thousand dollars now you pay $100 a month put $100 a month on line two now I'm going to show you this so you can understand why you would not you would never get wealthy if you don't understand what other people know about interests ever so you pay $100 a month now here is where they gives you your interest rate is twenty one percent online three twenty one percent people say what yes and this is why they're getting more net twenty nine twenty six twenty one percent now here's the magic line for your monthly rate equals twenty one percent divided by twelve you got a note see here's how they hide it when you hear twenty one percent you think simple interests there's a difference between simple interest and compound interest simple interest is if I made twenty percent one hundred dollars I made one hundred twenty one dollars everybody got it that's called simple interest I gave you twenty percent on this hundred dollars that's 120 compound interest is different we saw that with the other example am i right so most people would never calculate number for how they're killing you monthly you got to take the twenty one percent divided by 12 is one point seven five now watch this we took the twenty one percent divided by twelve months that's your monthly interest rate compounding every day for thirty wet days watch what happens to you line five equals 0.175 we got to turn our we got to turn our percentage into a decimal you everybody back in school you got to move it to the left right 0.175 this is how you calculate your interest payment online web fine you multiply the interest payment times the balance which is $5,000 your interest payment is eighty seven dollars and fifty cents because you got you got a balance of how much our number one five thousand so you got to take the one point seven five flip it into a decimal so you can multiply one point seven five times what five thousand it's eighty seven fifty for every payment you make 8750 is interest ding-ding-ding-ding-ding tipping point number thirteen your payment is wet one hundred that means you'll be paying out let me just let me get down to the resource number six that means your principal payment is the difference between one hundred and eighty seven fifty which is $12.50 that's cuz you got this high ass credit card are y'all with me on that so you can let me get this straight I want you to understand what the bank is saying you give me a hundred and I'm gonna give you back twelve fifty till you pay me $5,000 here that verbage you give me a hundred and I'm gonna get you back twelve fifty until you pay me five thousand and twelve dollar and fifty cent increments that's what interest is line seven your reality is $5,000 / 1250 equals 400 months 400 months shy to get you they give you the months so we got to divide the months on line 8 by 12 to get 33 years it's called your sentencing that's why I point it that way you got to take the number of months that you pay in the 1250 divided by 12 so you can get a real picture of how long it's going to take you to pay this cart with off line 8 is 400 months divided by 12 equals 33 years now watch this this way they just give you life right here line 9 your bank earns 80 750 times 400 which equals 35,000 off of what 5000 that's the credit card balance that's what you're doing and let me tell you something it's people out here with five cards just shipping just shipping on each one trying to maintain newsflash go get the one with the highest interest rate and start tripling on him keep everybody else at minimum I know because I've been in credit card trouble for I can talk about this cuz I know you take the one that got the highest interest you triple on him give everybody else just what they're asking for it so you can get over there does that make sense but as long as you're doing what they're asking they already figured out what they're gonna make with off you you can't pay the minimum balance on all your cars one of them has to get doubled and tripled every month then you snowball his freedom when he's free to the next one with the highest wet balance interest right go at the interest rate people say Brian this was higher that's how it gets you kill the interest will get to the highest balance that we snowball the ones that are killing you monthly we're eating to the 5,000 when we start giving him 890 a month because we took care of other four does that make sense let me tell you something why don't they teach you this in school yo finance professor up there time out the bell curve supply and demand right the theory of decreasing responsibilities all of this and we'll show you how the cars at the front table on campus will financially ruin you at 18 it's real it's called capitalism this the soil you live on and guess what it's the sad part it's the best country

Channel: Brian N. Beane

Views: 306,162

Rating: 4.930644 out of 5

Keywords: ihkem, brian beane, business, cash, home based business, income, extra digit movement, lower taxes, debt elimination, credit cards, dave ramsey, credit repair, suzie orman, myecon

Id: 6xUblG-7StU

Length: 10min 1sec (601 seconds)

Published: Wed Aug 17 2016