Podcast
Questions and Answers
What is the biggest obstacle to achieving wealth?
What is the biggest obstacle to achieving wealth?
- Lack of connections
- Lack of motivation
- Lack of education
- Debt (correct)
True or false:Debt can cause stress, anxiety, or depression.
True or false:Debt can cause stress, anxiety, or depression.
True (A)
Which type of debt accumulates equity with each payment?
Which type of debt accumulates equity with each payment?
- Student loans
- Equity earning debt (e)g. property (correct)
- Credit cards
- No equity debt (e)g. personal loans
True or false: Equity earning debt accumulates equity with each payment.
True or false: Equity earning debt accumulates equity with each payment.
How can credit cards benefit us?
How can credit cards benefit us?
True or false: Credit cards only benefit if paid off in full each month to avoid interest.
True or false: Credit cards only benefit if paid off in full each month to avoid interest.
What should be done with unnecessary subscriptions?
What should be done with unnecessary subscriptions?
True or false: It is not necessary to list all debts from largest to smallest.
True or false: It is not necessary to list all debts from largest to smallest.
True or false: The Debt Attack sheet can be found in the summit planner.
True or false: The Debt Attack sheet can be found in the summit planner.
What should be done with the lowest debt balance first?
What should be done with the lowest debt balance first?
True or false: It is not important to review and cancel unnecessary subscriptions.
True or false: It is not important to review and cancel unnecessary subscriptions.
What should be done to look for lower interest rates on credit cards?
What should be done to look for lower interest rates on credit cards?
True or false: Refinancing for a lower interest rate is not helpful in reducing debt.
True or false: Refinancing for a lower interest rate is not helpful in reducing debt.
What can be done with mortgages to pay them off faster?
What can be done with mortgages to pay them off faster?
What is the benefit of reducing debt?
What is the benefit of reducing debt?
True or false: Mortgages are a form of no equity debt.
True or false: Mortgages are a form of no equity debt.
What tool can be used to get started with attacking debt?
What tool can be used to get started with attacking debt?
True or false: Financial freedom with choices is not possible by reducing debt.
True or false: Financial freedom with choices is not possible by reducing debt.
What type of debt has a higher interest rate and no equity earned?
What type of debt has a higher interest rate and no equity earned?
True or false: The Debt Attack method involves paying off the highest debt balance first.
True or false: The Debt Attack method involves paying off the highest debt balance first.
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Study Notes
- Debt is the biggest obstacle to achieving wealth and can cause stress, anxiety, or depression.
- Equity earning debt (e.g. property) accumulates equity with each payment, while no equity debt (e.g. credit cards) has a higher interest rate and no equity earned.
- Credit cards can work for or against us, but only benefit if paid off in full each month to avoid interest.
- List all debts from largest to smallest, including interest rates and monthly payments.
- Attack the lowest debt balance first by adding more money to the payment until paid off, then move on to the next one.
- Review and cancel unnecessary subscriptions.
- Refinance for a lower interest rate and look for lower interest rates on credit cards.
- Mortgages are growing equity and can be paid off regularly or saved extra.
- Financial freedom with choices is possible by reducing debt.
- Use the Debt Attack sheet in the back of the summit planner to get started.
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