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TRUMP UNIVERSITY WEALTH BUILDING 101

In many cases, if you currently have a lot of debt, you won’t qualify for
lower interest rates, so, if you can, apply for them now and transfer your

higher interest balances, or refinance all of your smaller consumer debts with
a low-interest personal loan.
Remember, your goal is not to establish more credit, but to lower, and
eliminate, the interest you pay. If you do get new lower-rate cards, remember
what I said earlier. Cancel your old cards and cut them up once the balances are
paid off, so you don’t leave yourself open to future temptation. Consumers
become deeply in debt for one reason: a lack of control. The last thing you want
is a pile of cards that tempt you to get back into the spending game. I can tell
you, the consequences will very likely be much worse the second time around.
One last warning: If you refinance or lower the interest rate on existing

debt, don’t fall into the trap of making the new lower payment. Consumers
often do this. It’s grasping at straws, and it spells disaster. You can take out a
new loan with a lower interest rate, and often a longer term, which does lower
your monthly payments—but pushes you right back into the lender’s trap.
Guaranteed, you’ll be in debt longer, pay more in interest, and be tempted to
consume more new debt to absorb the “extra” monthly money you now have
to spend. The reason you got a new loan was to pay off your debt—not add to it.
This isn’t the only debt reduction plan available. It is, however, super
simple, easy to use, and works fast. If you get bogged down in the details, just
remember these simple principles:

• Get rid of unnecessary credit cards immediately. Most of us only need
one or two credit cards for emergencies. For nonemergencies, I rec-
ommend a card such as American Express or a debit card that requires
you to pay the outstanding balance in full each month.
• Pay only cash (or the modern equivalent; a card that requires you to
pay off the balance in full every month), and avoid charging unneces-
sary consumer items again.
• Start and stick to the debt elimination plan.
• Schedule a date in three to seven years to become debt-free.

• Remember to focus on the end result of financial freedom when you
are tempted to slip back into old habits.

Without the burden of debt, all of us would be happier and healthier,
financially and otherwise, and the world would be a better place, too. Every-

one can live debt-free.
Start spreading the news! For more information, visit johnburley.com/
trump .

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