How to Pay Off Debt FAST!


Getting out of debt,
being completely debt-free is a lot of people’s dream,
but the exciting thing is, for a lot of people, it’s their reality. So if you’re still in the dreaming phase, here is the fastest way to pay off debt. (upbeat music) Debt is something in our
culture that is just accepted, it’s like yeah, to go to school you gotta get a student loan, gotta have a credit card,
if you want a nice car you have to have a car payment. NO! No, no, no! You guys, you can live
completely debt-free. I’m doing it, thousands,
tens of thousands, I wanna even say hundreds
of thousands of people in America are working
this plan and not only are getting out of debt,
but they are staying out of debt completely. So, here’s the deal with debt: debt steals your income. The one thing that helps
you win with money, your income, is going to be
taken away when you have debt because of your car payments,
your credit card bills, students loan, et cetera et cetera. So, the fastest way to
pay off debt is this: listing out all of your
debts, smallest to largest, regardless of the interest rates. Now this debt is
everything but your house. So payday loans, personal
loans, credit card debt, student loans, all that
is in this plan okay? Not your mortgage, everything else. Again, listing from smallest to largest, and that’s how you’re gonna pay them off. “Well Rachel, shouldn’t you pay off the highest interest rate first? That mathematically would make sense.” Yeah it would make sense mathematically, but we’re not doing math are we? We are doing behavior change, people. We are getting out of debt! And the thing about personal finance is
that it’s 80% behavior. It’s only 20% head knowledge. I was just listening
to a guy this morning, he was talking about you can
know things in your head, but that doesn’t change your life. What changes your life? When it goes down into your heart and into your actions and what you actually do with your life, so you can know how to get out of debt, but that’s not gonna do you any good. You can know well the
highest interest rate should be paid off
first. No, you have to put it into practice. And by
putting it into practice and paying off the smallest debt first, even if it’s a $400 Macy’s card, right? You pay it off, and you’re
like oh, I can do this. This is exciting, I like
this, this is great, and you pay off the next one, and the next one, it’s just like a marathon of paying off debt. For those of you out there, paying off debt is the same way. Get that momentum, get it going because you can do it. So I want you to share your story, so I’ll put a link below for you to sign up for the community, get involved. Hey everyone, thanks so much for watching. I’m excited about you getting debt-free, I hope that video inspired you, gave you a great plan, so if you want more videos like this and some exciting stuff coming up, make sure to subscribe to my channel.

47 comments on “How to Pay Off Debt FAST!”

  1. Rosie The Budgeter says:

    Over 49k paid off in 22 months and about 13k left to go!

  2. welshhibby says:

    I've never been in debt. Is it hard ?

  3. Juli Davis says:

    Do you put car loans in with credit card debt when you do the snowball?  The credit card keep adding interest every month (debt) but the car loans do not.  I'm just not sure how much sense that makes.

  4. Tim Halcomb says:

    Appreciate you taking the time to make these short clips very motivating

  5. Michael & Olivia Sandlin says:

    Definitely has everything to do with behavior change. My husband and I just finished Baby Step 2 at the end of February. We paid off $17k in 10 months making $57k a year. In the middle of all this, we cash flowed having our 2nd child.
    If we had started with the highest interest rate debt, we would have gotten discouraged at how slow things were moving. This plan works!

  6. Lynn E says:

    We just refunded our emergency fund and paid off our car we still have more to go but we will get there.

  7. BakePraylove By:Cristie says:

    Can you talk about any side hustle you can to pay off Debt

  8. Stephanie Lynn says:

    I would love more videos like this!

  9. Hakim Alnakhli says:

    Thanks miss.Rachel…. this tip as simple as it sounds it just blew my mind and made me start to pay off my debt right away continuously the smallest being the first, instead of waiting to pay till I have the whole amount to give it back.

  10. Ruth Frey says:

    We didn't have much debt at all, but we're on our last debt, our car loan! We have like $300 left!!!

  11. Mymy Buligan says:

    I did this advice last year and im debt free.

  12. Rinac64 says:

    From $46,452.90 down to $33,402.01 = $13,050.89 Paid in 9 Months. Keep in mind, I did charge a few cards in December and only paid minimum due on all cards plus an emergency pet hospital that cost me $536 on Care Credit..But paid to 0 now. I'm working it and feeling so good not see some of the cards I was paying monthly now…great feeling.

  13. EDM325 says:

    Can anyone share any additional tips? I understand the concept but reading the comments did everyone pay off thousands of dollars just tackling smallest to biggest debt first? Are you cutting out other expenses as well?

  14. Rev. Ruth E. Gallot says:

    years ago paid off every debt in order to go to Grad School, so I know I can do it again… with clear intention and a plan. Currently working on being debt free long before my retirement (in approx 8 years). Just joined your Facebook group to help keep motivated and inspired.

  15. Carrie Evans says:

    Just paid off 24K in student loans in 10 months! Graduated college 1.5 years ago. Wish I would have cash flowed it!

  16. Andrew says:

    Another good one keep up the good work 😉

  17. Sarah says:

    Paying off my debts just made my credit terrible.

  18. C MacKay says:

    Since 1/1/18 I have not spent on anything but bills, gas, and food. I paid off $20,000+/- in debt. Personal loans, credit cards, car reduction, back HOA fees of $2000!, phew. It was hard, but the snowball works. It keeps the momentum going. And each payment builds on the next. I had $90k in debt and now have $70k. I have a year and half left to pay off two loans.

  19. Kathleen Burrows says:

    Ok, I'm sorry but I have GOT to ask what happened to your hair. Were you in an accident? I'm not trying to be rude, because I adore you, I'm seriously concerned. We can see the missing/cut hair in your part and I really need to know what happened. Please don't take this as a stab or get offended.

  20. Dahoom Alsaleh says:

    Hey rachel,, I love your videos. I created a budget on excel sheet but the thing is that I keep changing the projected amount just to keep up with my spendings. Any advice about how to avoid changing these numbers? Thank you

  21. harajukuloverstour says:

    Started March of 2017 at $117K and although admittedly not as streamlined as we could be, have paid off a bit over $20K..I am so thankful to have found this Ramsey plan.

  22. L'angolo del focolare says:

    How can I buy a car without making debt!? Any suggestion? I'm about to be debt free, but my car is very old and I don't know how to deal with it!

  23. Michela Rosier says:

    👍 great video and remainder to stay focus and be debt free is the taste to freedom.

  24. Aurelia Villa says:

    When listing my debt, do I include debt that is already in collections?

  25. Ray says:

    70,000 to go… single, no girlfriend, no real friends since I stopped going out…
    this feels impossible.

  26. Catherine Preher says:

    We’re debt free!! We took Dave’s class and did exactly what you said in this video! We got debt free and after having to deplete our emergency fund to cash flow bringing our first child in the world, we will have a fully funded emergency fund again next month!! 🎉

  27. Norma Garcia says:

    Cute top!!!

  28. Sarah Rhea says:

    Paid off two credit cards in the last month or so. Felt great to see those zero balances! Still chipping away at the rest but baby steps, right?

  29. K says:

    I'm on a roll paying off my 1 remaining debt, my credit card. I stay so motivated seeing these vids & reading everyone's success stories. This method has changed my life

  30. Dana Harripersad says:

    1:25 – 1:32: AGREED! 🙂
    Down to about $8K in debt – gotta resupply the emergency fund, but after THAT, I intend for 2019 – maybe even the last quarter of 2018 – to be a debt-free time! 😀

  31. sungods1111 says:

    Rachel, you're so beautiful and brilliant. Great info. 😘👍

  32. Sarah Forster says:

    You are amazing Rachel! I love your shirt, where did you buy it?

  33. Dr. Mommy Budgets says:

    I have quite a ways to go but I KNOW I will get there!!! I have about $343K including my home but started with $382K in November 2016. So I’m making progress! Thanks for the reminder and motivational push!!

  34. Robbie Thornton -Peek says:

    What does one do with a timeshare? Does one let it go or snowball it?

  35. lauramela says:

    Husband and I paid off 49k since July of 2016, 2 more months to go! We have 10k left to pay off. I documented most of my debt pay off on my channel! Love the Ramsey team!!

  36. Alek Miller says:

    That thumbnail did not turn out well, just a heads up.

  37. TheTaits08 says:

    We're working on Baby Step 1 right now. We can do this!! 😀

  38. Tiffany Fetterman says:

    I just wish that she would come up with something unique to offer instead of slightly changing the things that her dad says and cashing in on it. Rachel with your reading this please do something unique! We have heard this 1000 times from your dad.. what do YOU have to offer the world!?

  39. Christim19 says:

    I have been following all of you Ramsey Personalities since June 2016 and together, my husband and I have knocked our debt down $79,000!!! The last thing we did on our snowball list was last month when we sold a truck we had a hard time parting with (ok, I had a hard time parting with) which we still owed $18,000 more on at the time. We then bought an older yet more powerful truck with cash a couple of weeks ago and are so happy with the progress we have made. We now only have our home! You guys have kept me going big time and my husband was on board from the start! I took my stay-at-home mom job of working the numbers and envelopes very seriously!! Thank you, Rachel, Dave, Christy, Chris Hogan and Chris Brown! A large help was also the Every Dollar app. Just perfection! Budget is key and seriously allows us to do whatever we want. It's not limiting in any way…it's empowering! We have cash flowed a trip and many home improvement projects including a large deck and screened porch throughout this time as well! Now we are moving forward with passion!

  40. C Garcia says:

    What about medical bills

  41. Palette painting says:

    Love your fun personality!!!

  42. glovalova says:

    I paid off over $26,000 in one year, including a car and three student loans, and now we’re DEBT FREEEEEEE and will never ever go into debt again.

  43. Boston girl313 says:

    Love you and your dad❤️ thank you for inspiring me. I share your and your dad’s videos on my FB so others will learn about this. I’m debt free. Too bad I only started a year ago and I’m 55. But better late than never I guess.

  44. Ana Denny says:

    I only have $300 left to pay titleloan!

  45. smileev7 says:

    Can you make a video on passive income ideas!!!!!

  46. Rebecca Readus says:

    This is our first month of being debt free!!! It feels so great! Woo hoo! 34,000 in one year by buckling down, selling off cars, and living well within our means!!

  47. Health MED LAB says:

    Who will ever believe that there is still a legitimate loan lender online, Am so happy and exited after so many years of asking for financial assistance,God just send Mr Mark Donald to help me with this loan, today am so happy that my loan was approved and credited into my account without any collateral or upfront charges, for those seeking for financial support, i will advice you guyz to get in teach with him and get your personal loan, here is their private email [email protected]

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