THE TRUTH ABOUT DEBT THAT NO ONE ELSE WILL TELL YOU | Let's Get Real Ep. 11

Your primary home is the WORST debt you could have. PERIOD.

The ultra-wealthy know something you don't: Debt isn't a burden—it's LEVERAGE. While you're stressing about paying off your mortgage, the rich are using their debt to create more wealth.

In this no-bullshit episode, Stoy rips apart everything you thought you knew about money. Discover why:

• Your house isn't the asset you think it is
• The wealthy NEVER aim to be "debt-free"
• Student loans are a scam for most people
• Your mindset about debt is keeping you broke

This isn't your feel-good financial podcast. This is the raw, unfiltered truth about how money actually works.

Ready for some financial reality? Or would you rather keep believing the comfortable lies?

👉 Watch the full video: https://youtu.be/gDE5nN46WGY 👉 More unhinged financial truth: nobswealth.com

As always we ask you to comment, DM, whatever it takes to have a conversation to help you take the next step in your journey, reach out on any platform!

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Episode Transcript

Stoy (00:00):
Your primary home potentially is the worst bad

(00:03):
debt that you could ever have.
And I'm here to tell you why ontoday's, let's get real.
We're gonna talk about bad debtversus good debt.
All the things in between,probably not, but I can promise
you your primary home that youown that you think is an asset
is actually one of the worstdebts that you could hold.
So let's dive into it.
What is synopsis of good debtversus bad debt?
Good debt.
Let's start with the good.
I like to start with the good.

(00:23):
I'm optimistic person.
Good.
Debt is debt.
That is.
Allowing you to make money offof it.
Some people call'em an assetregardless.
Good debt, good leverage.
We'll get to the word leveragehere soon.
Good debt is something thatyou're able to use to make you
more money.
Bad debt.
Bad debt is the opposite.
Some cost something that iscosting you more money than it's

(00:44):
actually producing.
Ultimately that's good debtversus bad debt.
The most wealthy, and I'm gonnause wealthy in the terms of
money, so the most rich people,the most that have the most
money, those types of peoplealways have debt.
All of'em, they use it.
The most successful businessesin the world have a shit ton of
debt.
The problem in the differenceis.

(01:05):
In our socioeconomic, uh,society is the richer, the more
well off compared to our lowerincome have a different
philosophy when it comes to theword debt, and I will guarantee
you, which I can't really do allthe time, but compliance will
get me away with this one, isthat those business owners truly
rich, ultra high net worth.

(01:27):
When they hear debt, they thinkleverage.
And then on the other side, thepoor, the lower income.
When they think debt, they feelburden and heavy.
See how those are two differentthings?
Same word.
Same term, different feelings,leverage, optimistic.
I'm using other people.
I'm using other people's moneyto make me more money to afford

(01:48):
me to get ahead.
I'm using this asset, this tool,to make me more money than it
costs.
Flip side, you just think of itas debt and it's heavy, and it's
always on your mind.
Then it's not only gonna.
Hurt your mental health, butyou're thinking about how can I
pay that off the fastest, notwhat it's used for, but just I
need to pay that debt off.
I need to get rid of it.
I need to be debt free.
And therefore, you're using allof your energy and resources to

(02:10):
pay down this debt thing, andyou are not working on getting
ahead.
You are not utilizing for whatits purpose is.
Think about that for a second.
So what are some examples ofgood debt real estate loans that
you rent from?
Business loans that are used forthe growth of your business?
Some types of student loans orpurposes of student loans.
So first real estate loans.

(02:30):
Yeah, I just said that yourprimary, um, home is one of the
worst debts you can have, and itis in my opinion, and people are
gonna come at me for that, butit is because people usually
don't use it correctly.
Think about, you think about allof this.
Right now you're saying, I havethis mortgage.
We'll just use simple numbers,$200,000 and I want to pay that
down and, and be debt free asfast as possible.

(02:52):
But you gotta think about what ahome and how a home value works,
right?
It goes up in appreciation,obviously we know that, but it
does not operate as an asset.
An asset is only something thatcan produce an income.
Appreciation is not an incomefor you potentially unless you
utilize it correctly.
So if you pay off your mortgage,you still have.
Taxes, right?
Still got property taxes.

(03:13):
You still have upkeep.
Right, and you're probably gonnaadd on to that home at some
point.
So you have all these threecosts that the appreciation will
not keep up with.
Most likely.
Some of us are lucky in someinstances.
You bought a$200,000 house and10 years later is worth a
million.
So, you know, bear with methere, but even if you paid it
off, where's that money comefrom?
Those things.
This is where it comes intoplay.

(03:34):
The having a primary home.
Can be an asset if usedcorrectly, and that's using your
equity.
So if I have a$200,000 house,it's now worth 300,000.
I have a hundred thousanddollars of equity.
I should use that to invest inthings that will bring me more
income and pay off the debt.
Therefore, now you are flippingthis bad debt that I say your
primary home is into an actual.

(03:55):
Asset that is producing andhopefully either paying for
itself or paying for the equitythat you use right now, it's an
asset that is the samephilosophy when you go into
rental properties.
You want the asset, the rentalproperty to pay for itself.
Its upkeep, its taxes, as wellas its mortgage debt.
Leverage, if you will, plus alittle bit of profit, or maybe

(04:16):
not.
It's the same exact thing youshould be doing with your
primary home as well.
Just slightly different.
Second business loans, right?
Business loans are great.
Re reconstruct some debt,provide more operational funds
for hiring more employees.
Maybe we're expanding, maybewe're doing more marketing.
Business loans are pretty simpleto see the fact that it's
leverage as long as you use itcorrectly, which gets me to our

(04:36):
student loans conversation.
Student loans are inherently baddebt for majority of us, unless
you're going into a specialty.
That is it.
It is designed for doctorates.
Obviously being a doctor is ahuge one.
Attorney psychologists researchthose types of degrees and
student loans will pay offbecause those have higher income

(04:58):
producing down the line.
Now a general business, um,history.
Some of those may not be goodfor you.
Therefore, student loans are baddebt majority of the time.
Now let's get to the bad debt.
I think we all know what thoseare credit cards that you use
that aren't being used for anasset producing thing, and
you're just buying stuff to buystuff that just accumulates on
the credit card at 20% averagebad debt payday loans.

(05:20):
Inherently the worst type ofdebt you could possibly have.
Some of those, if you actuallydid it poorly, have up to 200%
annualized interest on them.
That's a lot.
That is, that's too damn much,actually.
And those are the two worsttypes of bad debt that you could
possibly have in my opinion.
The only caveat is that studentloans can teeter back and forth,

(05:43):
back and forth a little bit.
So there you have it.
That's bad debt first, good debtleverage or debt.
Where does your brain lie inthose things?
I.
What's the most important toyou?
Well, how do we use debt and usethe leverage correctly?
Then simple stuff here, folks.
If you have an asset orsomething that you want to
invest money into or utilize,right?

(06:03):
Even if it's a vehicle, somepeople say depreciate assets
like a vehicle's, not somethingthat is considered bad debt.
Well, if you overspend, yes, ifnot, how do you get to your job?
That's why a vehicle can workfor you.
But let's, let's talk about theleverage of it.
So you need to calculate.
What I need for leverage, whatit's going to cost of what
income, this thing, thisinvestment, whatever tool is

(06:25):
going to provide for me.
If it's in a new employee,they're gonna cost me$60,000,
but because of them, I can grow.
10%, 20%, or if you want to useit in numbers, if I add them at
60,000, I actually can make120,000 because of now my
ability to scale.
Well, that's a pretty easywin-win there, right?

(06:45):
Don't you think?
As well as going through andunderstanding how you're
utilizing your credit cards aswell.
There are incredible offers outthere for balance transfers and
0% interest from both six monthsto 24 months I've seen.
And what's important there isyou can utilize these tools to
help you offset some of that baddebt you have and leverage

(07:08):
credit cards in a way that maybeyou aren't doing correctly.
And ultimately, at the end ofthe day, you need to plan.
You need to plan to leveragetools and items out there for
you.
And if you are not, then whatthe hell are you doing?
And you're just stuck in thisbad debt cycle repeatedly,
generation by generation, bygeneration.
Think about that for a sec.
Now that you've thought aboutthat, how do you feel?

(07:28):
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What more unhinged shit do youneed story to talk about?
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