How To Start Paying Off Debt?

– Debt, it is like a
sword, it is a weapon. You can use it to, well, cut the enemies, protect your family, or you
can use it to cut yourself. So, what do you do with it? And there are two kinds of debt, there’s the good debt
and there’s bad debt. I want you to think about debt
as, instead of the word debt, I want to teach you a new vocabulary. I want you to think about debt
as leverage, it’s leverage. So debt is nothing more than
the money that you borrow from someone or an institution
to perform an activity. And that activity can
make you richer, right, you cut off your enemy, or make
you poor, it is that simple. So if you think about debt in that kind of setting, in that kind circumstances, good debt, what do I mean by that? Let’s say good debt is a business loan that you borrow from the
bank to expand your business, to buy that new piece of equipment. Maybe to hire more employees to grow your company, to grow your business. That’s good debt, that’s a business loan. Or it could be a mortgage
that you borrow from the bank to invest in investment
property, that’s good debt. Or it could even be student loan that you borrow from the government. Now you are improving your skillsets, so you can deliver more
value to the marketplace. That’s okay too, that’s a good debt. But you notice, it’s not
so much about the debt. It’s the person that’s
borrowing the money. So, let’s say the entrepreneur
borrowing money from a bank, if the entrepreneur is smart, and is wise, and he uses that money or
she uses that money to grow the company, and generates
more revenue, that’s good debt. On the other hand, different entrepreneur, same circumstances, borrow
money from the bank. Then makes a bad investment,
bought the wrong piece of equipment or expand too quickly. Now the business is losing money. Well, it went from good
debt to now bad debt. Does that make sense? Now, let’s talk about bad debt. The second kind of debt,
the worst kind of debt. What am I talking about, car
loans, payday loans, right? Credit card debt, personal
debt for personal consumptions. Or even other types of debt
that you are borrowing, but really is for your personal pleasure, right, it doesn’t really generate money. It doesn’t make you richer,
it makes you poorer. That’s what I call bad debt. So, you think about debt,
it’s not that it’s good, or it’s bad, or anything like that. It’s simply a form of leverage. How do you use this leverage
to make you richer or poorer? So I started off with because
I was a lousy businessman, I had a lot of bad debt, and
I started paying them off. And I started paying them
off, and I started paying them off, and now I use leverage for good. I want you to think about it. Almost every millionaire and billionaire in the world uses debt,
or leverage, in some form. Almost every single one of them. So today I have very,
very little bad debt. I have a lot of good debt, good debt that makes me richer, that makes me money. So, let me give you three steps that will help you get out of debt. Step number one, focus on increasing your income, not lowering your debt. I want you to ask yourself a question. Making the money that
you are making right now, how long would it take you
to pay off all your debt? Comment below, would it take
you three months, six months, one year, two years, five
years, 10 years, 20 years? When you think in those
terms it’s so overwhelming. How the hell am I gonna pay off all those money that you owe? So it’s unrealistic to
think you can be debt free or get out of debt with
your current income. At least for most people
it’s virtually impossible. So what you want to focus
on is increasing your income so you can pay off that debt faster. What you need is, it doesn’t
matter what it is that you do. You could have a job, a J-O-B. You could have a business,
it doesn’t matter. But what you need is what
I call a high-income skill. A side hustle that you could make money on the side in your spare time, when you’re not at work, when
you’re not in your business, to bring more money in so you
can pay off that debt faster. Let me give you an example, one of my best friends’ husbands,
he is a good employee. He makes about $100,000
a year with his job. Pretty good income, pretty good pay. But in his spare time, in summertime, he actually teaches golf. And in the wintertime in Vancouver he teaches people how to ski. So he’s a golf instructor in summertime, and then in the wintertime
he is a ski instructor. It’s something that he
loves, it’s his passion. But he also makes good money doing it. By having that high-income skill on the side on top of the
100K that he’s bringing in every year, he makes an
additional $30,000 a year as a golf instructor and a ski instructor. That’s a high-income skill. Now, I want you to imagine this. With whatever you’re making right now, if you could bring an
additional 3,000, 5,000, 10,000 a month without changing
what you’re doing, just adding an additional
stream of income, how much faster would
you pay off that debt? That’s exactly what I did. I worked in my early 20s. I told you, I was $150,000 in debt. I was making only a few
thousand dollars a month. But as I was working and developing my high-income skill I
was making more money. I was then making 5,000 a
month, 8,000 a month, 10,000 a month, 15,000 a month,
20,000 a month, 30,000 a month. You see, when if I just focus on the debt, if I was using the
$2,000 that I was making to pay off that 150,000 in debt I would wait till I’m like 65 years old. I will never pay that damn thing off. But I was making more money, and I kept my expenses very, very low. So I was able to pay that off 5,000 here, 3,000 there, 10,000 there, 15,000 there. And before you know it I was debt free. So, that’s step number one, focus on increasing your income,
not lowering your debt. Step number two, use good
debt to invest in yourself. Now, remember, debt is
nothing more than leverage. Even when I was $150,000 in debt I was continuously investing in myself. I was investing in course and
programs to upgrade my skills. You see, money earned is a
byproduct of value creation. If you want to make more money you need to deliver more value. In order to deliver more value to the marketplace, guess
what you have to do? You need to improve your skills. You see, most people,
they want more money. Dan, I want more money. But they don’t want to
work on their skills. You see, in life you don’t get what you want, you get what you deserve. So my friends were
telling me you are stupid. You’re already $150,000 in debt, why are you still
investing in these courses? Why are you buying all these programs? Are you crazy, you’re stupid,
you should save the money. I was telling them, you know
what, I’m already 150K in debt. That $500 course, that $1,000 seminar, that is not gonna affect
anything, I’m 150K in debt. But if I could get one golden
nugget I can get an idea, I could learn a new skillset
through those programs, there’s a chance that
my life could change. And that’s exactly what I did. You see, you don’t have a debt problem, you have a skill problem. You work on your skills so
you can make more money, then your debt problem is gone. And step three, I want you to list every single debt that you have. And you may be thinking, no, I
don’t want to think about it. No, I want you to list every
single debt that you have. Maybe you have a credit
card debt of $5,000. Or maybe you have a
student loan of $10,000. Or you have another car payment, you know, car loan that is $8,000. And then you have another small little credit card here
and there, that’s $1,000. Okay, I want you to be very specific. I don’t even want you
to use round numbers. I want you to get absolutely
clear, crystal clear. It’s $5,236.52. It is $10,826. I want you to be very, very clear because when it’s a round number in your head what happens
is it always feels bigger and more overwhelming, all right? And clarity is power,
vagueness is weakness. You don’t want to have a vague answer. You don’t want to have a vague problem. You want to be very
clear, exactly how much you owe, and you list all of them. And I bet you, you can comment
below, once you do this it might actually not
be as bad as you think. Now you can see, okay, this
is what I have to deal with. This is what I have to tackle,
let’s do it one at a time. Now, what I’m gonna teach
you, step number three, it goes against every single
damn financial expert. What they’re out there,
what they’re telling you. Well, because most of them
are broke, let’s face it. They don’t have money, they
have a lot of debt themselves. What I’m gonna teach you works. Here’s what I want you to do. I want you to think about all the debt that you have right now. Let’s say this particular one, it has an interest rate of 20%. And this small credit card, whatever, it has a 12% interest rate. Every single damn expert, they will tell you here’s what you want to do. You want to pay off the debt that has the highest interest rate, right, that is costing you the
most amount of money. Oh, let’s do that, it
might sound logical, right? It sounds, yeah, that’s a logical answer. Here’s the problem, human beings we are not logical, we’re emotional beings. So instead of paying off the one that has the highest interest rate,
here’s what I recommend. What I would do is I would pay off this one first, here’s why? I want you to pay off the
debt, pick one that has the highest, the biggest
psychological payoff for you. You know the one I’m talking about. The one that’s been lingering,
maybe it’s money you owe to your family and friends
that they have been keep bugging you again,
and again, and again. And you felt so guilty and so bad. That if you pay that one debt off you will feel so good,
you will feel so alive. Pay off that first, even though the interest rate may be lower. It doesn’t make logical
sense, forget logic. That’s what I did, when I paid off that first little bit of debt, suddenly what happens is, oh, I
felt I could do this. I could actually start crossing
these off one at a time. And small success leads to bigger success. And then I pay off this one, and then you can pay off this one. And then you pay off this one. But until you pay one off
this feels so overwhelming. And guess what, then you’re paralyzed, and you never take any action. I don’t want that to happen to you. So, step number three, pay off the debt that has the biggest psychological payoff for you personally, do that first. If you want to get out
of your debt even faster, and you want to develop
that high-income skill that I was talking about,
and if you’re serious, I want you to click on the link somewhere on this page it could be below,
it could be somewhere here. And join me for a
special two hour training where I’m gonna teach you
how to make $5,000 a month, $10,000 a month, or even $15,000 a month without prospecting, without cold calling, and without doing anything online. So go ahead and click the link there, and I’ll see you in class.

99 comments on “How To Start Paying Off Debt?”

  1. Dan Lok says:

    If you like this video give it a thumbs up
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    videos like this one.

    If this is your first time watching my video,
    comment below and tell us about yourself.

    And if you’ve been watching my videos
    for some time now, comment your biggest
    takeaway from this video.

  2. Margaret Hii says:

    Hi Danlok, thank you for sharing your knowledge that helps people around the globe to get out of debt. Thank you Mr Dan!

  3. Jennifer Martin says:


  4. Candy Feyrer says:


  5. xfilecity says:

    Very powerful stuff. I have bad debt and after watching this video, I am motivated more than ever to become debt free. For me it just clicked after I watched this. Thank you sir!

  6. Patty Calaunan says:

    Hi Dan! Great video!
    My takeaway in this video is small success leads to bigger success.
    Hope this will help me in my problem.

  7. kevin kabagambe says:

    I like all your videos so educative πŸ‘πŸ€

  8. Sidali Filali says:

    Dan, Thx for sharing i used the same method to pay $31264 for my debt (C.Cs N' CAR L) in less than a year. No teaching. It was just my instinc how to deal with my debt. Glad to know now!

  9. Andrew Jr Gray says:

    Thank you!

  10. Anonymous says:

    Japanese Samurai Sword needs 2 Hands!

  11. Belus Traveller Foreign Once says:

    Your right, I did this and it does change your attitude totally, It’s a confidence booster. Always a pleasure Dan, Be Safe, Belus Traveller

  12. donald dang says:

    I have 'bad debt'… I used debt for Facebook Ads I'd thought I'd pay off with my revenue, but my revenue went down and I'm in a hole… at least it would only take me 2 months of beans and rice to fully pay off the debt

  13. Juan Medina says:

    Great video. Cool thanks..

  14. Fontbuena Fleurdeliz says:

    I'm glad I'm in the right track…Thank you, Thank you, Thank you…

  15. Fasco Thom says:

    thanks a lot i will do as you that.. your video was really clear and sounding good.

  16. Adrian Ttta says:

    It depends on the type of investment and the ultimatum you have on your debt. If you have 2 months to repay a large debt, then I can recommend a complete investment plan with bitcoin. Expect!! "Before closing: I know that bitcoin is volatile and its value goes up and down. But I always say to do your own research. Since the first day of this month, bitcoin has had an upward trend .. and looking at the chart many analysts point out the similarities between the chart of the current year and that of 2017, as we record a record of more than $ 19,000. This makes it more interesting.

    The exploitation of bitcoin has proven to be less and less profitable, because now you need more hash power, more expensive equipment and a constant power supply … at the end of the process, you would have spent as much and your income could not not be able to cover the amount you spent for setup anda ongoing maintenance. This is why the Zeus mining farm was introduced. Zeus created a foolish server farm feeding a singular server. With the subscription to the nodes, you can subscribe as for the mining in cloud. you do not invest and instead of waiting too long for your return on investment, you earn a daily income and in less than one month, you could earn more than 300% of the value of your initial subscription (in dollars). daily deposit on your personal wallet) .. Add: ZUESTALLY on Skype for more information.

    With a complete investment plan, you can invest with confidence and pay your debt in a month or two. Only if you have time to pay off your debts

  17. Josh says:

    Well I owe $24,000 in bad debt. Very demotivating.

  18. Anne Kigen says:

    I need help on how to pay off my huge debt of 18,000 dollars

  19. David Adams says:

    i want to pay off my Total Debt in 6 Months

  20. Allan Moral says:

    Enlightening! Thank you Dan!



  22. Yael Mor says:

    Great to listen to you. 3 years ago I paid off the smallest debt. Now I am paying off the biggest whatever I earn I invest into myself. To feel better and to aquire additional skills I rest a lot and relax. Only inner peace lromots me.

  23. Willson Creative Studio says:

    Cutting an enemy…is good debt…wow what a comparison

  24. MacCartney simbarashe says:

    it will take me 3 months

  25. Darrell Tan says:

    Is like a gun or weapon. It is not debt are good or bad but who use it.
    1. Increase income but not lower the debt.
    2. Use good debt to invest ourselves.. reason, to upgrade our skills
    3. Pay off the highest and biggest psychological impact to us.

  26. Faris Tayyab says:

    Was so focused listening that in the end I realized my mouth was open all time long

  27. Cleiton W says:

    Dan greetings out of Boston MA USA. This was the most effective free 12 minutes talk I've ever watched. Thank you for your motivation.

  28. Dennis Kimathi says:

    5 years

  29. Bryan Ratahi says:

    Hi Dan Its been a wonderful experience watching your philosophy an speaking abilities on the mark Dan.

  30. John Prinsloo says:

    I do not have any debt at all… all I need, tbh, is to make $100/day to be Financially free… forever. If I could use debt in a way to help me make $100/day semi-passively, I would be set. but, nothing is this simple.. unfortunately

  31. Brian Armstrong says:

    The best way to avoid is not have any

  32. Brijesh Rajput says:

    You are amazing.

  33. Ana Maria Leyton Acevedo says:

    Very well

  34. Ngondwe Mark says:

    Thank u dan

  35. Jade Eddington says:

    This is very good advice. I just got introduced to your videos. Thank you for breaking it down.

  36. marleneisnarcfree peaceful says:


  37. AG Creations says:

    OK… He said a bunch of obvious common sense stuff… Thanks?

  38. Rudyspective 1 says:

    I was already doing the first two before I saw this video, but Dan gave me the final piece of the puzzle with step three, and it all makes sense now! Thanks Dan!

  39. Nadiya QT says:

    It will take me 2years to pay off my debt😐😐😐

  40. Anna C says:

    Great video very insightful! Thanks for making it! ^^

  41. jill Ac says:

    I want to learn..

  42. Ayda Patriarca says:

    I would sent this to my

  43. Asen asenov says:

    Well I like my bank, and feiling very shay and embarrassed to go tell them to close down my bank cuz I can't longer keep paying it!
    That is very embarrassing for me extremely!
    Is like I fail them! πŸ™

  44. Gregory East says:


  45. Brightness Point 1 says:

    Although am late to watch your videos ,i learnt alot..Thank you sir..God bless you

  46. theapplenut says:

    2-3 years

  47. Neba Melvis says:

    Thanks Sir. This actually helped.

  48. Tony Tobias says:

    First time watching.
    Invest in your self and your skill set.
    Know exactly how much debt you have.
    Good advice.

  49. αžŠαŸ†αžŽαžΎαžšαž‡αžΈαžœαž·αžαž†αŸ’αž–αŸ„αŸ‡αž‘αŸ…αžšαž€αž—αžΆαž–αž‡αŸ„αž‚αž‡αŸαž™ αžŠαŸ†αžŽαžΎαžšαž‡αžΈαžœαž·αžαž†αŸ’αž–αŸ„αŸ‡αž‘αŸ…αžšαž€αž—αžΆαž–αž‡αŸ„αž‚αž‡αŸαž™ says:

    1 Month in June 2019 I must pay off all my debts

  50. Jimmy nathan says:

    I only witnesing 6 kind of debt that works, the good debt in purpose to make someone's happy bad debt to make people sad , the bad debt without considetare people's future hapiness, the good debt because considerate people's future happiness. Bad debt because unpurposely cause people sad , a good debt because unpurposely cause people happy. Very well made sword sir love it.

  51. folke Shams says:

    nice video dan lok

  52. Karolis KloniΕ«nas says:

    Dan is a master salesman. He is selling his courses to drowning in debt hopeless folks. I admire the confidence no doubt.

  53. Charles Ballard says:

    It would take me to pay off all my debt would be 10 years

  54. Ssenfuma Joseph says:

    Am interested in making 10000 dollars a month teach me how, and thanks for the great lessons.

  55. Goddess Bore says:

    What happens if your family gets you in debt when your a teenager?

  56. Matt Scott says:

    $4000 remaining on my car loan not the highest interest but the debt I hate the most.
    I will start with that.

  57. Stevie Solutions says:

    I had bankruptcy years ago. I do candy machines, My tech friend and I are thinking what can we do, we have some plans in mind. I am trying to get out of a pizza shop job and make money on amazon and my own selling site.

  58. Sina Mirdamadi says:

    I am 15 years old and I have 800$ savings and extra money in bank that I cant use them now what do suggest me to do in summer for make a little more income thank if you answer.

  59. DoThaWork says:

    Student loan debt is horrible because of the interest rate.

  60. Georgey G P says:

    Thank uu i sharing y re ideas with everyone specially with young workers πŸ™‚ its working slowly but working guys started saving money
    All the best

  61. Explore Sweetescape says:

    inspirational. keep sharing!

  62. better believers says:

    What about mortgage debts. like house ?

  63. Francois Booysens says:

    12 months

  64. My_ Only Sunshine says:

    I’ve been following your channel for motivation and to inspiring me to change my life for the better. I’m 14 and I am learning so much things here that even school doesn’t teach. Now I learned that Debt as Leverage can help you be it good or bad. I need to increase my cash flow and my skill set. In order to help me generate more income.

    Thank you Dan for teaching us and bringing value towards your community :3 Looking forward to the next videos you upload x

  65. Jason Belfield says:

    I have Β£10.000 debt lets get the ball rolling and pay it off ..thanks Dan

  66. Ý Pham says:

    Your advice is giving me hope. As a college student with over 10 k in personal debt, over 30k in college loans, and giving that my income only makes a tiny tiny tiny portion of the debt, I'm now feeling that I have hope and a sense of direction of tackling these debts. Thanks Dan!

  67. So Somunirath says:

    Borrow to expand our business is good debt, what about when the expansion is going to down?

  68. Suilen Bryant says:

    About 3 months

  69. Armin Dj says:

    I thought that a high income skill is min 10 k a month!!!

  70. garagedj says:

    15 years

  71. Sean&melissa WillChene says:

    You had me at the Katana

  72. Jong Ha says:

    It’ll take me 2-3 years if I work everyday

  73. daisy daisy says:

    I hv so much in Dedt any 1 help mπŸ˜₯πŸ˜₯πŸ˜₯πŸ˜₯

  74. Aditya Wiryadinata says:

    Do you pay your debt first or invest first? The debt i mean is mix within good and bad debt.

  75. Odirile Gaebue says:

    i have $1000 i want to pay my $20 000 Debt in Six Months how can i increase it….just sold my car $1400.

  76. ginger ninja says:

    It took me 5 years to pay back $70,000

  77. Pat Siazon says:

    Thank you!

  78. X says:

    but how man when dan pena said that to buy fancy things like suits and expensive cars and he was ur instructor can you explain?

  79. OLD Beer Buzzard says:

    I never had any Debt, Couldn't pay cash, I didn't buy It. Not that I ever had money, Well the Necessities I needed to be comfortable. Old age is not going to be Comfortable, No debt or in complete bankruptcy, It seemed to not matter. Now they just suck Elderly Dry until they die. Not like the days when we held our Elderly at high prestige and honor. God luck

  80. Merit Blas says:

    I have no Good debts yet. πŸ€”πŸ€“πŸ˜‡

  81. Shoobbie C says:

    Damn you bad debt! Why you infecting me like the plague throughout my life?

  82. Zan Mohdz says:

    This video is a real Daaamn superb video. really good.

  83. Dave Hamilton says:

    EXACTLY what we're already doing right now… Thanks for the confirmation, Dan!

  84. Claudia Ng says:

    i m serious

  85. roland ozuna says:

    On android they're are no links

  86. Jayamurugan Dhanasekaran says:


  87. Karindra Muliaputra says:

    4 months

  88. stanley jean says:

    Stay away from woman focus on school graduate save no drinking no smoking no friends.

  89. Jonathan Magda says:

    Thanks Sifu.. really needed to hear this ❀

  90. Custom car repairs says:

    40k house debt
    Β£1060 debt car
    3k debt trailer

    Total Β£44,060

    10 years to pay off if i thought like i did before. Im going to take my new skills and try pay off quicker i need a better income so that's what im going to develop first. Thanks Dan time for me to go to work 😊

  91. Satish The Gamer says:

    How many broken people here including me. ☹️

  92. Pher Di says:

    Thanks bro

  93. k odu says:


  94. Nathaniel Eden says:

    Had my attention the moment he pulled out that sword!

  95. Jenner Scott says:

    Contact Chris for paying off debt.. if you are interested you can contact him anytime at (469) 415-5670.. his work is free.

  96. Rhina Mendiola says:

    You are an awesome guy Dan!! kudos! I always watch your videos to learn on how to deal with money matters and its really very well explained and in details.. will keep watching more of you for more learnings and apply it for myself for a better success.. Keep up the good job😊

  97. Estelle Light says:

    Dan do you suggest consolidating all personal loans, credit card debt into one lump payment a month?

  98. Mats Brenden says:

    i just want to say thank you for making this video. you have motivated me so much and im now ready to take action. i owed my friend 1,6 thousend dollars. and you! have made me come one step closer to my goal. ive payed off 600 dollars. and om on step 2. tank you so much.

  99. javier FDelaLuz says:

    where would you recommend to invest money? go from small amount. Dan Lok

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