Millions Have Done This to Pay Off Debt Fast

all right you guys we are talking about the baby steps in the series and now it is time for baby step two but remember baby step one is your starter emergency fund of a thousand dollars maybe step two is to pay off all of your debt using the debt snowball now debt is something that so many people just see as a fact of life that like you're always going to have debt that's part of the gig here and people have really convinced themselves of this 68 of people say that they need their credit card for emergencies but here's what's fascinating the most common type of credit card is a store specific credit card okay last time i checked banana republic cannot fix any emergency you have people okay so that is just a mindset shift that people have to make to say okay i'm going to live without debts yes even credit cards car loans student loans all of it to live a debt free life but changing that mindset again is so difficult because you just assume you have to have debt but here's the deal you can live without a credit card you can actually save up and pay cash for a car you can go to school debt free got tons of videos on that as well anthony o'neil talks about this a lot but focusing on the fact that you really can live life without debt i know it's crazy to say but it is possible so when you get to this place where you say you know what i'm just sick and tired of being sick and tired i'm so tired of going to work making an income and it going straight back out to all these bills all these things that i've already done in the past and now i have no money to do anything to save or to give or to spend because it's you're living paycheck to paycheck that's 78 of americans so when you get to that place where you're mad about that in your situation that is when you change and that is when you say you know what i'm going to do something different i'm going to do something different like pay off all of my debt and live a debt-free life so what does this look like okay paying off your debt using the debt snowball the debt snowball is where you list out all of your debt except for your mortgage from smallest debt to largest debt regardless of the interest rate you're going to list them all out and then you're going to pay minimum payments on everything i want you to stay current so pay minimum payments on everything and you're going to attack the smallest one first then once that's paid off you're going to roll it over to the second smallest debt once that's paid off you roll it over to the third small step keep going going going until you are debt free and the beauty of this process is again as you're paying off debt you're getting extra money from all of those minimum payments that you can throw on the next debt plus the more you sacrifice the more you cut out of the budget the more you work extra the more that you do to continue to throw more money at the debt snowball the faster you're going to get out we find that people are getting completely out of debt except for their mortgage in 18 to 24 months you guys like this is so possible that's why i love the debt snowball versus doing highest interest rates to lowest interest rate because that snowball you get these quick wins and you can say okay i can do this like this is possible i i'm actually winning and people that get this gazelle intensity is what we call it where you just like you do anything possible get out of debt it is incredible what happens because you get out of debt faster the deeper you sacrifice and at the end you're debt-free you have no more payments could you imagine could you just imagine having no payments and you guys it is possible so that is the baby step that we are talking about today is baby step two getting out of debt using the debt snowball now as a little motivation i want to show you the debt free scream of my social media strategist julia julia's amazing and this was such a fun moment to have her and her husband on the dave ramsey show to do their debt-free scream and our whole team we were just we were so giddy we loved it so check out her debt free screen we love it when someone's standing on the debt free stage in the ramsey solutions lobby because it can only mean one thing they're debt free and we super love it when it's one of our team members and rachel super loves it when it's her senior social media specialist that she works with all the time i know i was like oh my gosh julia and sam are with us julia's on our team as a senior social media specialist uh which takes a senior one to keep up with rachel's social media a junior couldn't keep up with her social media julia's amazing julia is amazing did you use a legend around here on this whole social media stuff the uh uh you've been with us how long two couple years april of 2018 is when i started two and a half years okay two years and almost yeah okay good wow very cool so how much of you two paid off a hundred thousand dollars boom and how long did this take you 34 months 34 months okay and a lot of that approximately 30 months or so you've been here yes okay so what happened four months before you came to work here because i know what happens after you come to work you've joined a cult we check your wallet every day we don't check your temperature but we check your wallet for credit cards yeah so um oh my gosh no we don't we just it's just a positive environment where everybody's cheering for you right so what happened that got you guys started on this journey so when we got married in april of 2017 we spent those first few months just doing the normal things like we bought a house even though we were in debt we started making improvements to that house with debt just you know really wasn't making a lot of sense and when new years of 2018 rolled around started making resolutions for us of like hey we probably should get our money stuff together and just kind of make it made a loose plan of okay we have credit cards need to pay off we've got a car loan that's killing us um but then mid-february i kind of felt a stirring in my heart that i wanted to work somewhere that had like more purpose than what i was doing um and thankfully uh jeremy duke from the smart dollar team is one of sam's really good friends and he spoke to us about jeremy's fault um so we began talking about the position that was available um to help launch the rachel cruz show and the rest is history oh that's right goodness so you came on to launch when we launched that show then that makes sense okay incredible okay so for you guys because i kind of i mean i i know you personally so i feel like i'm cheating and all of my questions but it's an underhand page but i know yeah but but so many couples are like you guys right listening right now and they want to begin this journey so what would you say here's the hardest part of the journey and here was actually the easier thing that i didn't realize was going to be easier i think for us um when i started working here i was coming back home every day and saying like oh wait like dave says that we should do this and dave said we should do that and dave kind of became a customer even though you were you know signing my checks every day um and so once we have to shut up and sign the check um so for us really the turning point was starting financial peace university um we started that probably just a few weeks into me working here and for me that's when i saw sam really get on board yeah i uh uh you know i'm listening and i was like yeah it sounds great you know whatever just make the budget just let me know how it goes and uh i'm on board you know and uh so we went to financial peace university and um we were dr we drove to two different cars because we were coming from two different places all the way to clarksville to take it and uh so as soon as we got back in the car uh our separate cars to drive home i'm calling like we could do this we could sell this and go get an extra job like we get let's do this let's do this one yeah yeah i was like let's run he said let's run this run you know i was really excited about it and uh i think for me it was mainly the conviction because i brought 80 of the debt that we had into the marriage um and uh so you know i brought most of that in i wasn't honest about the amount that i had on my credit card and um so it really kind of kind of put us back you know we felt like we were doing a lot of work but i also felt like that uh we were fighting a monster that we both couldn't see right because she didn't know everything that that i knew so that was probably the hardest part of sitting down and being honest about the amount of debt that i actually had which is hard right yeah super vulnerable and how early in the process did you all have that conversation well the credit card was pretty early on in the debt snowball so it was pretty quickly at first i was like yeah you know we could probably put a couple thousand dollars a month at it and it'll get it taken care of she's like no no how much do we need to take care of and then that's when i was like 11 thousand dollars yes there it is couple thousand for six months yeah exactly so the hundred thousand dollars was what what did that combine credit cards um windows on our house um i caught my car and my student loans was the most of it yep amazing you guys and you did it mm-hmm proud of you so who were your biggest cheerleaders because i know you got cheerleaders at ramsay all around you for sure i mean there's a few dozen of the other around half the team's not working they're not they're watching you but yeah um but definitely um we have some of our family here um first off they helped us make uh meals on sundays when we were trying to save on the grocery budget um but it was really cool too we coordinated a few financial piece classes um in the past year and i feel like that's another layer of accountability where like when you're doing it when you're doing it you don't be hypocrite and talk about yeah exactly and so getting to sit down with people who um are also like in the thick of it and needing help making budgets like i can make budgets all day long i love it um but like that was really great cheerleaders and then just the conversations that opened up afterwards when people knew that you were being honest about your money journey and how you're getting out of it they're more likely to come to you and say like okay we're like wait how do how do i how do i pay off my car how do i refinance my house like that's what's been really awesome is just being able to share our story and hopefully change others as well yeah so uh all of america wants to know the answer to this question what is it like being the senior media specialist for rachel cruz it's great dave i really enjoy doing it every day i really love coming to work here that's great no uh i love getting to work with rachel she knows this um you were a joy to work with and i am super thankful to be on your team and it's just it's been a fun ride well julia julia takes care of everything she's a master she's wonderful and i'm just so proud of you guys i really am again we say it over and over whether you work in this building or not and i can say it because we're around the same age but i'm like you know young couples young families it's such a journey and doing it early on making the sacrifices early on like you just set your life up so well like the last call we took in the last segment is like yeah you get out of debt not just to be out of debt but to free up your income to do incredible things with it like now it's not going to the car loan and the credit cards and all that like you now have a pile of cash every month and you're like oh wow okay what do we want to do with it and it's just it's really exciting because you get to just build that legacy so i'm i'm so excited for you guys you're a hundred thousand dollars lighter how's that feel man it's pretty awesome it's pretty awesome i tell you when we decided we we were getting really close and last thing we were left with was my student loans and uh two things happened first is we kept putting off finding out exactly how much i had in student loans we had estimated 45 000 because that's what i remembered that i had when i left and we sat down about i guess six seven months ago and decided this our last part of our snowball let's figure out how much that is and in five years it had gained seven thousand dollars and we were sitting at fifty two thousand dollars in student loans going the wrong way paying double on the minimum payment that we had originally uh decided so then covet hit and we're like we gotta do something to get out of this you know we'll be done by april if april 2021 if we just keep keep going but we could do something else and so when covet hit we were walking every day trying to stay active we just started talking like what what if we sold our house we first sold our house right now took all the proceeds of that and got out of debt and we did it we uh the one with the windows yes yep the one with the windows we paid off the windows first we paid the money the house yeah oh my gosh so we sold our house and uh paid off our debt we got the check on uh tuesday and paid it off tuesday night and we were debt-free was it worth that it's so worth it yeah absolutely worth it yeah well you get you another house exactly yeah it's not like you're broke forever or something like you could never have a house again it's not that's not a rule or anything so way to go you guys so proud of you you're heroes well we've got a copy of chris hogan's book but you probably already got it i'll get you a copy of rachel's book oh but you probably already got it yeah all right good stuff well done all right julia and sam uh julia's a senior social media specialist on our team working with rachel's brand for the last two and a half years a hundred thousand dollars paid off in 34 months count it down let's hear a debt free scream three two one we're done uh julia's just the best i seriously so proud of her i mean it's incredible and you know what the other incredible thing is you can do this yeah you you could be julia like if you just decide you just decide you know what i'm not going to go into any more debt i'm going to start working my way out of debt it is it is possible i know it sounds like such a big idea you guys but breaking it down smallest set to largest set you walk through this process this journey where you continue to get more and more hope that this is possible and we have ways to track your savings goal inside ramsey plus and seeing those daily small wins even the big wins can make all the difference and the level of freedom you have when your income comes in and it is not tied to banks and credit cards and student loans and car loans anymore it is yours you get it and you get to say what do i want to do with this money i can give it i can spend it i can invest it i can save it i don't care but you actually have the freedom to decide you have options again it's an incredible thing when you put the power back in your hands versus the banks and that is baby step two it is taking control of your money because it's your money it's your money and it's on everyone else's money we live in a world where it's everyone else's money so remember to take control of your money get out of debt and create a life you love [Music]

Channel: The Rachel Cruze Show

Views: 66,049

Rating: 4.9495206 out of 5

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, Millions Have Done This to Pay Off Debt Fast

Id: oU8B2AHP6P4

Length: 14min 20sec (860 seconds)

Published: Wed Jan 13 2021