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Sha Nacino | Trace Trajano



Yuppies! _____________________________________ This book is presented to: _____________________ _____________________ 3 .Think Rich.

Sha Nacino | Trace Trajano _____________________________________ 4 .

Think Rich. Yuppies! How to Overcome Credit Card Debts and Start Becoming Truly Rich 5 . Yuppies! _____________________________________ Sha Nacino | Trace Trajano Think Rich.

. Philippines. (63) 2 505. 9375935 Requests to the publisher for permission should be addressed to The Business Evangelist. Fax (63) 2 846. While every effort has been made to make this book as accurate as possible. 10 9 8 7 6 5 4 3 2 1 6 . Some content that appears in print may not be available in electronic books. Published by The LLOYDLUNA Communications. Philippines Printed by KD Printing Corporation located at 2 JP Laurel St. The information in this book was obtained from the authors’ personal experiences and insights. Makati City 1235 Philippines.lloydluna. No. 1745 Dian St. Edited by Jionette Clyde Arawiran Cover Design by Marguelle Designs Book Layout and Publication by The LLOYDLUNA Communications. visit our web site at www. Novaliches. No part of this book may be reproduced in any form or by any means without the prior permission of the authors. LLOYDLUNA also publishes its books in a variety of electronic formats.Sha Nacino | Trace Trajano _____________________________________ Copyright © 2011 by Sharon T. San Bartolome. For more information about LLOYDLUNA products. Quezon City Tel. All rights reserved.1089. Manila. Tel. Nacino and Trace Wendell D. The LLOYDLUNA Communications. Dona Faustina Subdivision. Manila. the authors disclaim any liability or risk as a direct or indirect consequence of the use of any contents of this book.com ISBN: ISBN 978–971–93474–5–3 Printed in the Philippines.5336. Trajano.

“What is the one thing that is stopping you from getting out of the ‘rat race’ and onto the fast track?” one of the most common answers is debt...i hate this kind of life. It’s a variation of “Hey Trace..com When I ask the question.bank keeps calling at my office. Yuppies! _____________________________________ Chapter 8 Deep in Debt: To Control Your Debt.i thought having a credit card is great but I’m wrong coz now my debt is greater than my income.000… How will I be able to get out of this? 7 ..Think Rich.” —Anonymous’s comment on http://tracetrajano. You Set it and Forget it! “I’ve grown my debt and now it’s haunting me. I’m earning enough for my family but I have this big credit card debt… It’s ₱100.

It will produce ₱1million pesos a month in income or cash flow.e. so in this chapter. is infinite. to get out of debt. we’re going to solve that problem. so whether or not you work. It will. 8 . Is Debt the Death of Your Dreams? The answer to that is “Absolutely Not!” You can turn this debt — this stumbling block – into your stepping stone. Later on. and that’s forever — until the property is standing there. Because here’s the thing: debt is finite but your income. Let me repeat that. you set it and forget it. you get one million pesos a month in cash flow. at some point. Let’s say you buy a piece of property. Debt is finite but income is infinite. As the title of this chapter goes. Imagine you have millions of pesos and you can buy a piece of property i. You can pass it on to your heirs. whereas your debt is always finite. if you set it correctly. Think about it. I will show you how you can do that. That’s why your income is infinite. five-storey building. end.Sha Nacino | Trace Trajano _____________________________________ That’s one of the most common things that I’ve read in my blog comments.

” It’s like this: I tell you the statement. This is called the “Law of Attraction. it’s always smaller than infinite.Think Rich.” What color of the elephant are you thinking of? Exactly — purple. “I’m getting out of debt. As we know in Mathematics. So if you say. That’s how the Law of Attraction works. “I am not thinking of a purple elephant. Here’s the other thing I’d like you to think about. Yuppies! _____________________________________ So take comfort in the fact that you can create infinite income.” But here’s the problem: the Law of Attraction cannot distinguish or understand if you put the word “no” in front of it. “Do not think of a purple elephant” and you repeat that after me. no matter how big a number is. It doesn’t see the “no. Here’s the truth: Your past does not determine your future. I want you to be undeterred by debt and use it instead as your stepping stone to financial success. by changing how you think now. You can change your future by changing your present. And here’s another truth: what you think about.” Then guess what? You will get more debt. 9 . comes about. I’m getting out of debt. You will attract debt because you are thinking about debt.

000 a month.000. We’re going to do a little bit of math. as one of my mentors. I just want you to get the principle.000 pesos every month. You owe Ram ₱20. but what exactly is a debt repayment program? Let me illustrate this in an example. if it’s ₱1 million per month or USD100.000 per month.000 or ₱5. 10 . This is just an example so do not think that this will only work for people who earn ₱100.Sha Nacino | Trace Trajano _____________________________________ In order to eliminate debt in your life. which is debt. Let’s say you’re a high earner. not the negative. It works in any of those cases. “You set up an automatic debt repayment program so you can focus on prosperity. let’s say you owe three people or three entities: You owe Ram.000 per month. the Hard Money Lender — maybe he is the stereotypical “bombay” doing 5-6 or whatever. which is wealth or income. Bob Proctor said. you’ve climbed the corporate ladder and now you’re earning ₱100. It can work whether your salary is ₱10.000 and you pay ₱2. This sounds very good. So going back to our example. you’ve been working for about ten years.” Focus on the positive.

You owe ₱50.000 per month for your debt repayment program. Yuppies! _____________________________________ You have a Visa credit card at 36% interest.000 a month. You are in deep debt in this example. You actually owe more than what you earn every month.000 from MasterCard.000 a month You owe ₱50.Think Rich. So let’s say you are able to allocate ₱10. I’d like you to do a little bit of math.000 and you need to pay a minimum amount of ₱1. Calculate the “Debt Cash Strain Factor” (DF) DF = Loan Balance Minimum Payment Lowest DF gets paid off first 11 .” This is your total balance divided by the minimum payment you need to make on a monthly basis. Calculate what I call the “Debt Cash Strain Factor. Minimum payment is ₱2.

MasterCard has 25 and Visa has 50. except for Ram.000 = 25 P2. I’ll explain why. The Debt Cash Strain Factor (DF) is 10. you owe Ram ₱20. So in this example.000 12 .Sha Nacino | Trace Trajano _____________________________________ And what I want you to do is pay off the debt with the lowest Debt Cash Strain Factor first. The idea here is you pay all of them the minimum monthly payment required.000 = 50 P1.000 a month. to whom you’ll have to pay more than the minimum amount.000 MasterCard: DF = P50. Ram: DF = P20.000 but you pay him ₱2.000 = 10 P2. you’ll be able to pay off your debts a lot quicker than you think.000 Visa: DF = P50. By doing it that way.

We don’t want you paying the minimum only. ₱2.000. it will take you forever to pay off your debt.000 for Ram. ₱1.000 per month but you need to pay a total of ₱5. is P1. 13 .000. But notice that since you now owe Ram ₱15.Think Rich. The interest due. And then on Month 2. your minimum payment should go down as well. When you pay Ram first. you can pay him another ₱3.000.000 (that’s the minimum he requires).000 for Visa.500. you do the same thing. Yuppies! _____________________________________ Recall that you allocate ₱10.000 for MasterCard) as your minimum payment to all three. remember? That means you’ll be paying him ₱5.000 because you have paid ₱5. Because your total principal has gone down. In addition. if you do the math. If you do that. It would be a mistake to pay only the minimum. you pay him ₱2.000 (₱2.

500 pesos and your monthly interest due is only 950 pesos.000 P2.500 MC P50. Now. you only owe Ram 9. On Month 3.000 P1. So can you see how your debt gets paid off a lot quicker? 14 .500 And then on Month 3.000 P1.000 --- Additional P5.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 2   Balance Payment Ram P15.000 --Visa P50. notice this. you do the exact same thing. Now you can pay Ram even more in terms of principal.

000 --Visa P50. By the time you pay off MasterCard. basically by Month 6. 15 .000 in additional principal payment.000 --- Additional P6.500 P 950 MC P50.Think Rich. you will have to pay ₱10.000 a month for Visa. You can now allocate your payment towards paying off the next one. which is MasterCard.050 If you do the math. Ram would have been paid off. you should be paying ₱7.000 P2. Yuppies! _____________________________________ Month 3   Balance Payment Ram P9. Instead of paying ₱2.000 P1.000 pesos only.

very powerful. what if I really made a lot of financial mistakes and I can’t even afford to pay the minimum payment anymore?” Well.000 --- Can you see now how you can really accelerate paying off your debts by doing it this way? It’s a simple technique.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 6 Ram Balance Payment Additional ---MC P50. there are several things that you can do.000 Visa P50. 16 . and it works! But what If you come up to me and say “Hey Trace.000 P1. It’s very.000 P2.000 P7.

no dinner out. It will help you to also get rid of all the clutter in your house as well. Postpone that expensive vacation or that gimmick. it does work in the Philippines and I know because a relative of mine did this. I owe you ₱50.000 a month. no.000 now and consider all the ₱50. Why not try approaching one of the credit card companies to whom you owe and renegotiate your debt. Opt for free or cheaper place of recreation. he did this not just once but several times across the different credit cards he had. As an example. Yuppies! _____________________________________ Step 1: Cut down on living expenses Forego that grand wedding you’re planning.Think Rich. Make it simple.” Well. you can call and say “Hey MasterCard. So offering them a big chunk of money versus their receiving payments in little increments 17 .000 debt gone?” Some of you might be thinking. No movies. Step 2: Renegotiate the debt. If you can sell some of those things or gadgets that you’ve accumulated over the years. do it. seriously cut down on a lot of things. What if I offer you ₱10. that doesn’t work in the Philippines. “Trace.000 and I pay you ₱1. And in fact. For a while.

There’s no harm trying especially if your debt is killing you.000 credit card debt.000. They asked you to pay ₱25. Why? Because instead of receiving a little bit of money on a monthly basis. Let’s say you a got a “No” when you offered ₱10. It could actually be a Win-Win situation.000. your credit card company might just agree to your proposal.000. Try renegotiating your debt. Step 3: Look for other means of income What if you’ve been trying to live below your means and yet you still have a lot of debt? What if you tried renegotiating your debt and the creditor said “no”? 18 . Who knows. go for that if you can raise the other ₱15. And guess what — they can write that loan off and they can lend again.Sha Nacino | Trace Trajano _____________________________________ is always tempting to them. That would still be far better than having to pay off ₱15.000 instead and they will write off your ₱50. So it can be a Win-Win situation.000 or ₱20. They can lend that ₱10.000 that you paid them and so they can make more money.000 to pay off ₱50. Heck. they can receive a big chunk of cash now.

what could it do for you right now? How much of your debts will be paid off if you can generate that amount of money in a very short span of time? And maybe right now. There are certain techniques in buying a house with no money down and selling it quickly for quick cash. you can buy real estate with no money down.000 pesos in cash — that’s not the equity. Don’t think that you need hundreds of thousands of pesos for this. That’s cash in his pocket in just seven days. It’s possible in any country. It can be done. Think about it: 140. for instance. Yuppies! _____________________________________ Then now. made 140. One way is through real estate. there’s a guru who also teaches people how to buy condos with no money down. You just have to get the know-how. you have to look for other sources of income.000 pesos in cash. wherever you are. In fact. Even in Singapore. You can become my next successful student if you just seek out the knowhow and the coaching. in any market.Think Rich. and get the right coach so that you’d be able to succeed as how Jay and my countless students all over the world have done. as long as homeownership is allowed. If you had such an amount. Jay Castillo. 19 . But it can happen. it’s hard to believe it.

That’s one advantage. It forces you to simplify and to make the right priorities. you’ll be able to distinguish better the important things and needs from your wants. granted you have a lot of debt. and that is to tell you it’s high time for you to convert your stumbling blocks into your stepping stones.Sha Nacino | Trace Trajano _____________________________________ Let me end this chapter in the same way that I started it. there’s always an advantage for every disadvantage. Norman Vincent Peale. So you might be thinking. The thing is. Just look hard enough because if you have accumulated a lot of debt. having big debts forces you to simplify your life. It forces you to get rid of clutter from your home. or your wardrobe. you can either catch it by the blade or by the handle. but so what? Welcome to the real world. 20 . “What is the advantage of having a lot of debt?” Well. So how does that apply to your finances? Well. One of the greatest motivational speakers of all time. There are a lot of people with big debts and yet they’re able to turn their life around. So it’s high time to simplify your life and enjoy the things that really matter. said that when life throws a dagger at you. it’s likely that 90% of them are things that you don’t even use or see or enjoy. As I said.

Personally alone. he was in great debt. You’ve probably heard of this story before.Think Rich. His net worth became negative. convert a 900 million dollars of debt into billions of dollars 21 . got into financial trouble. he was actually richer than before he got into financial trouble. as you all know. Yuppies! _____________________________________ Now.” That beggar was richer than him because he owed 900 million dollars. and return to what made him rich in the first place. Yet he utilized his big debt to simplify his life. he’s liable for 900 million dollars of debt. not including the debt that his company owed to creditors. big debt also forces you to think big. In fact. If Donald Trump can turn his life around. he said to himself: “This beggar is richer than I am. How much debt do you have in your credit card? Do you have 900 million dollars in debt? I bet not! When Donald Trump saw a beggar down the street in New York. He then went into executing and implementing what needed to be accomplished. Think about it. focus on the things that are really important. into getting more deals done. and you know what? — in five years. but let me tell you the story again. back in the late 80’s to early 90’s. Donald Trump.

to turn their greatest adversity into their greatest victory. Realize that big debt gets the winners in life to think big. eighty thousand. 22 . why can’t you overcome a fifty thousand. one hundred thousand pesos credit card debt? That is nothing.Sha Nacino | Trace Trajano _____________________________________ of net worth.

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