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DEBT MANAGEMENT
Bad Debt Has Got to Go

A multiple-choice question for you: $8,700 is

A Just above the U.S. median family income back in 1963
B Larger than the 2004 per capita income in Oman, Chile, Argentina, Morocco, and over 100 other countries
ranked by the World Bank
C The average spent per pupil in 2003 for a public high school education in Shasta County, California
D The average personal credit card debt in the United States
E All of the above

The answer, of course, is E.
That much personal credit card debt is a lot of spending before it’s earned and a whole lot of catching up that
needs to be done. The culture has dictated this urgency of consumption, and it’s hard not to subscribe to the idea of
immediate gratification. But it’s undermining our capacity to generate wealth. In order to set the foundation for the
Wealth Cycle, we need to eliminate your debt. And we will.
To clarify, we’re talking about bad debt only. That means consumer debt, such as high-interest credit card debt
that you acquired buying perishable items. We are not talking about good debt, such as any low-interest borrowing
you’ve done to finance a mortgage or student loans, with the interest deductible against your business operations. If
you are leveraging debt against an asset, such as your house or your business, then we are going to leave that debt
alone. But the bad debt has got to go. And this will be done without declaring bankruptcy, which in almost every
single case I have ever seen is an unnecessary step, and without using those debt-aggregating programs, which
promise to get you out of debt with one easy monthly payment but end up costing you much more money and time
than if you did it yourself. In this process, we will show you how to shrink your bad debt to zero while
simultaneously creating cash flow to take care of your expenditures for the rest of your life. Once you realize that
cash flow is king, you’ll come to understand that if you focus on creating that cash flow, you’ll never again have to
worry about your expenses overwhelming your income. Unfortunately, Chuck Wallace wasn’t there yet.
Lap Your Debt

A 30-year-old math teacher in The Woodlands, Texas, just outside of Houston, with a baby and a wife at home,
Chuck came into our Team-Made Millionaire community several years ago. Here’s how he responded to the eight
questions.
Question 1: What Is Your Monthly Income?

“I make $3,333 a month.”