Grant Clifton

And debt, you know, to me, a lot of the time it just ends up being head noise and you don't need that head noise, you know.

Sure, when you're a young fella and you want a nice truck,

Yeah, figure out how to do it and pay it off as quick as you can.

Get rid of that debt.

It's a short-term debt for a reason.

Yeah.

the other thing with finance which is um it's really good and in the book we explain this and it's called it's called the rule of 72 and the rule of 72 is like a mathematical formula which it basically you divide the interest rate you're paying on whatever it is so let's say you've got a credit card and you're going 10 grand on it um and the interest rate on it's 18 and so you the rule of 72 basically is you divide the interest rate into 72 and it'll tell you how long it's going to take

for that debt to double.

And it's quite scary when you work it out.

Yeah, right.

So if you leave it there and you make the minimum payments, Big minimum payment guy I am.

Big minimum payment guy, yeah.

So on a five grand credit card at 18%, the interest cost on that if you make minimum payments is going to be half of that again.

So you're going to pay back $7,600 if you make the minimum payments.

So whatever you can do, don't make the minimum payments.

work it out and smash all your extra money off it and like we're saying like if you've got an offset account you pay extra but the extra you pay can go into that offset account so it's offsetting your interest but it is there if you need it that's right you know it is there you can redraw yeah some of them don't have redraws but just if you want to redraw you can yeah um they've all got different you know niches of different banks and different products but all pretty much the same

That's right.

At least that, eh?

Do a bit of a budget and see how much you can actually afford, you know, and don't cut yourself short on other stuff for the ute or whatever you want to buy, but figure it out what's the shortest period of time you can pay it off over.

The thing with finance, the quicker you can pay it off, the less interest you pay.