In this week’s video, Samuel Leeds addresses people in specific who are currently in BAD DEBT!
So, if you are eager to become financially free but feel like your debt is holding you back, then carry on reading to find out how YOU can ESCAPE it!
Firstly, it is important to be clear on the difference between GOOD debt and BAD debt (yes, there is a difference!) So, here is it:
This is where you have borrowed money to invest in an asset. This is OKAY!
An Example: Borrowing money to invest in a property – a mortgage!
This is where you have borrowed money to invest in a liability. This is AWFUL!
An Example: Borrowing money to pay off bills.
If you are in GOOD debt, then you’re doing well!
Remember, most successful businesses and entrepreneurs run off good debt, as it is an investment and asset.
BUT, don’t worry.
If you’re in BAD debt, you can still become financially free and here is how…
Previously, Samuel had a friend approach him with worries concerning his debt. Understandably, this person was in £16,000 worth of debt and thought it would take forever to pay it off and stressed to Samuel –
“What do I do?”
“WHAT YOU FOCUS ON, EXPANDS.”
Secondly, the worst thing you can do is focus on the problem as this can make it worse. Instead, focus on making money as opposed to worrying about paying off the debt. As what you focus on expands. Samuel advised his friend to focus on one thing. The solution.
This included setting up a monthly standing order paying back the money bit by bit, scrapping ALL credit cards and most importantly, (listen up!) not borrowing ANYMORE money to invest in a liability.
…Within 14 months, he was DEBT FREE!
So, Samuel Leeds TOP TIPS if you are in bad debt:
Don’t write yourself off – there’s still time!
Do not feel like you need to pay it all off BEFORE you begin investing!
Never use bad debt as an EXCUSE!
Remember, don’t get yourself all wrapped up in it – what you focus on expands!