The FASTEST Way To Pay Off Debt

Here is exactly how you can pay off debt fast, and how to save money as easily as possible - Enjoy! Add me on Instagram: GPStephan

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We’re going to start this video off with some very scary statistics…you’ve been warned, I hope you’re sitting down…because this is getting out of hand:

FIRST: Understand EXACTLY what debt you have.
Make a list and write down ALL of your debt, and include the remaining balance owed and the current interest rate that your paying.

SECOND: Track all of your spending over the next 30 days
You need to figure out, DOWN TO THE PENNY, how much money is going IN your account each month - and then, how much is LEAVING IT

3. And third, you could also use a software called YouNeedABudget

The whole point of this is just to be aware of where your money is going, and from that, you can better figure out how to put best use to where it’s going.

THIRD: Make a NEED TO SPEND vs WANT TO SPEND LIST

Your “NEED TO SPEND” list might be the bare minimum food budget, your housing payment, your insurance payment, or anything else that’s absolutely ESSENTIAL.

Then, the other expense column will be your WANT TO SPEND…this could be anything else.

FOURTH: You need to REMOVE EVERYTHING you possibly can from your “WANT TO SPEND” category.
I also recommend, when doing this, that you consider SELLING some of the things you don’t need, or are costing you a ridiculous amount of money.

FIFTH: Look into debt consolidation
In addition to this, you could also look into getting a 0% interest credit card - and transferring the credit card balance to THAT card to save on the interest.

SIX: PAY OFF DEBT
The first method is called the SNOWBALL METHOD, popularized by the one and only…DAVE RAMSEY.
This method suggests that you pay off your smallest balance first, then slowly work up to your way up to the largest balance until it’s all paid off.

The next is called the avalanche method. Instead of arranging your debts by total balance, you arrange them from the highest interest rate first, to the lowest interest rate last. This ensures that you’re putting your money towards its best use, which will cost you the LEAST amount of money in the long term if you stick with it.

My recommendation is to check out the Vertex calculator…

SEVENTH: Pick up a side hustle
Sorry to be super obvious here, but if you literally don’t make enough - it doesn’t matter how much you save, you need to make more money.

And with all of this, YOU MUST DO ALL OF THIS CONSISTENTLY!

[sunkistlbc]

The real problem is how you got into this debt in the first place. Identifying this and changing your habit without falling back into it will be the true challenge of getting out of debt for real.

[anatoly-totolyinvested]

Graham, I had 150k of revolving debt from some very very stupid mistakes when I was 23. I had to do exactly what you talk about in these steps. I talked about it in one of my videos and am very glad that nightmare is over. Thanks for the content. Very helpful and useful.

[ThisIsTechToday]

I paid off $83, 000 in debt in 3 years using the avalanche method and now I just save the money I used to pay off debt instead of increasing my quality of life much at all! Worth it!

[AndyofCT]

Not eating out saves so much money. I probably save about $100 a week by eating every meal at home. I also save about 500 calories a day.

[temiymahs_World]

I smashed the like before even watching! That’s how much I trust this guy’s advice!💜🤙🏾

[JazminDreams]

Once I get my debt down I will finally be able to afford iced coffee & avocado toast :')

[jennlowetherapy]

This is one of my favorite videos of yours! My only debt is a student loan and I am ready to be done!!

[bizhelpguru]

"Today is the worst it is ever going to get." LOVE THAT! Very motivational!

[peruvianmiamiboy]

I have a job but wanted to pay off all my bad debt, got a side job as postmates delivery and I have paid off all the small bad debts, it has help a lot!

[darkenedlight]

Well there is another benefit of the snowball method over the avalanche method that you may be overlooking. Not only is the snowball method more psychologically friendly, it is also better from a risk management perspective for this reason: The more individual accounts you pay off (which you maximize by paying them in the order of smallest to largest balance), the fewer minimum payments you will need to meet if you suddenly face an emergency where you need to redirect the money you were using to make the extra payments. If you pay off 4 of 10 accounts and each account had $25 minimum payments, your money minimum payment is only $150. However, if you have only 1 of 10 accounts paid off and each has a $25 minimum payment, your monthly minimum is now $225. In this example, you have $75 more in cash flow as a result of using the snowball vs avalanche.

[KevinMcMullen.]

I became debt free when I was 28. Awesome feeling!

[davidchester]

Tracking your spending is reactive rather than proactive. I have a bunch of different accounts. One for fuel, another for food, one for house bills and a walk around money account. Then I've got an account that I save up for things and a separate emergency fund. Segmenting everything definitely helps

[chrisjames]

I just followed Dave Ramsey using the budget and debit snowball. Out of debit in 13 months and feel great.

[MickeyMouse]

Bro im in $4000 in debt and im freaking out....but after hearing people are like in $10000 or more in debt, it makes me feel better about myself lol. Cant imagine owing that much.

[Binhminhtqn]

I feel that the Snowball Method is better for those who have a really large amount of loan and some small loans. Like $15, 000 at 10% rate and $2, 000 at 4% rate. Its better to pay 2000 off first it give you a mental boost because 15000 will takes like forever to pay off :)

[calvinraab]

Now is a good time to get focused on paying off debt for the baggage of debt will feel a lot heavier when the economy is in the dumps.

[sumdumbmick]

regarding the bar thing, I brew my own alcohol in old 2-liter soda bottles that I get from occasionally buying store discount brand soda for my kids. as long as you rinse them out w/ tap water no unwanted bacteria should grow since we'll be producing alcohol very quickly, but if you're worried you can clean them more thoroughly. just throw in some sugar and yeast and top it up w/ water and let it go for a week or so (generally at least 3 or 4 days). it doesn't have lots of flavor, but it's pleasantly mild and if you use distiller's yeast the alcohol content can get higher than wine. plus, once you have some going the only ingredient that costs anything to make more is the sugar (and you can make gallons upon gallons of this stuff with just a couple bucks worth of sugar), just add some of an older brew to the new one to get a live yeast culture. you can also use things like cold brew or sun tea as a base, or throw in flavourings like rosemary or lemon.

to regulate pressure and keep out oxygen, once it gets going and builds up a little pressure just crack the top and let the built up CO2 escape. so long as you don't fully remove the cap and seal it back up while there's still a little pressure you won't get any oxygen back into the bottle because CO2 is heavier than O2 and most of the other molecules in the air, thus preventing the alcohol from turning to vinegar. but of course, if you use vinegar for things like cleaning and cooking, you can also make that by just leaving the cap off.

[piapenny]

I smashed that like button because you mentioned You Need a Budget!! It’s the best. I paid off my 5 yr car loan in 21 months because of YNAB!

[sameerahmohammed]

I personally don’t have any debt (I’m 20 years old and my education is free for me) but I love watching your videos. Your explanations relax me for some reason 😂

[BusinessEngineered]

I have $80K in student loan debt (recent engineering graduate), so this video is super helpful! Thanks Graham!