Workbook

The Proven System For Your Debt Freedom

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In the many life battles between you and your circumstances, those circumstances will surely

unleash all their resources against you.

Are you going to sit idly by and let that happen, or are you going to unleash your very best efforts directed toward taking back greater control over

the quality of your life?

-RON REYNOLDSCREATOR OF DEBTBUSTER®

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The Proven System For Your Debt Freedom

On behalf of everyone at AdvoCare, I congratulate you for taking this important step. By actually going to work on whatever debt you have, you’re taking one of the most important steps toward financial responsibility you can ever take. Getting rid of debt is the best way to help make all other financial goals possible.

Your financial health consists of two important things: First, it’s the amount of money you earn. The more you earn, the more you can do. Second, it’s the amount of money you are paying in interest, including interest to creditors — and that’s very important.

We will spend time in this booklet talking about interest. Interest is the money you pay to your creditors for having used their money to purchase the things you want or need. We use their money because very often we don’t have enough of our own money for those things. When we use the money that’s available to us on our credit cards, we have to pay the creditors for the privilege. That’s where the trouble begins. At first, we have every intention of paying things off over time, but as time goes on, we can easily start to make the troublesome “minimum payment due.” Before we know it, the unpaid balance can grow to a monstrous proportion, and that’s where the real trouble can spin out of control.

You see, if you were to take the time to add up the amount you’re paying in interest, you would probably be shocked at how much that is. It’s your money that you’re giving away. It would be a good idea to add up the interest you pay each month on your mortgage, all of your credit cards, student loans, car loans and any other source to whom you’re paying interest. Most people won’t do that, and they don’t do that because they don’t want to know, as though not wanting to confront their reality is going to somehow make things better. Just remember what we neglect typically gets worse, and what we pay attention to typically gets better.

Finally, the real tragedy is the interest that’s been paid represents money that a person, if there were no debt, could have invested elsewhere. A person who has no debt could be earning interest instead of paying it. It’s important to make sure you understand that debt is not normal. It’s normal in the sense that most people have debt, but for those seeking to join that elite group who are debt free, it’s very abnormal.

Ok, let’s get started. Make sure you begin by making a firm resolve to get rid of your debt, not just “manage” it. After reading this booklet, I encourage you to strive for your most ambitious goals and have them written in your journal.

With confidence,

Ron Reynolds

Introduction and Welcome

WELCOME TODEBTBUSTER®!

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The Proven System For Your Debt Freedom

Before we get started on your commitment to tackle your debt using the DebtBuster® system, it’s essential for you to make an honest appraisal of your current financial reality.

Remember, “for things to change, we have to change.” We have to change how we think about money and how we think about debt. Do you feel that debt is “normal” and that everyone has debt, so therefore it’s ok to accept it as a modern-age reality? If so, it’s that mindset that must change.

Contrary to what has come to be a popular and accepted mindset … debt is NOT normal!

Debt is abnormal and many American families feel trapped by it. The chances are good that you’re one of them or you wouldn’t be reading these words, but remember this, more important than what may lay behind you is what lies ahead of you.

Now, to start with a mindset shift regarding debt, take a moment and answer the following questions with a simple “yes” or “no.”

1. When you use one of your credit cards, do you feel a twinge of apprehension about how much money you owe?

2. Do you find yourself checking the price tags on an item before making a purchase?

3. Do you sometimes feel a subtle concern about not having any significant investments for your future?

4. Do you sometimes worry about not being prepared when your children are ready for college?

5. Do you and your significant other often disagree over your spending habits and do

you argue about money and bills?

6. Does how much you’re paying in interest each month cause you concern?

7. Do you sometimes think about getting a part-time job to help make ends meet?

8. Are you beginning to feel that you need a purpose in your life?

9. Do you get anxiety when the phone rings, when you check your emails or when you walk out to the mailbox?

10. Do you have a desire to make the second half of your life better than the first half?

If you answered “yes” to more than three of these questions, you are likely feeling financial stress.

Now, two of the ten questions above are “defining moment” questions, and those two are numbers six and ten.

Number 6 How much of your total income is going toward the interest you’re paying each month? The average person has no idea, so this is where we begin.

You must sit down with all of your financial records — your checkbook, those statements you get from all of your creditors, and then add up the amount you’re paying in interest. Most statements show the amount of your last payment that was applied to the principle amount you still owe and how much was applied to interest.

Add the interest you’re paying on your mortgage, credit cards, car payments, student loans and all services that are charging you interest.

How much is that total? $_____________

If you don’t bother to add it all up, then chances are you’re looking for a quick fix for a lifetime of neglect. We each need to attach our own personal and emotional feelings to looking at that number. And it will take a significant amount of frustration, as well, so we can form an unquestionable determination to get rid of it.

Look at that number again — suppose that amount was yours to keep.

Number 10 Is it OK with you if the second half of your life is about the same as the first half? If it is, then put this copy of DebtBuster® in the trash or on a shelf, because without a willingness to change how we look at money and debt, then nothing will change, and if nothing changes, nothing changes!

Remember those two questions as you proceed with DebtBuster: — How much interest are you paying each month? Is it OK if the second half of your life is a duplicate of the first half?

Now that you’ve read the first few pages of the thoughts regarding DebtBuster, here’s a final insight before you begin your new DebtBuster journey.

5 Reasons People End up Financially Unprepared 1. They never knew what they wanted; they had

no purpose.

2. They were unwilling to change some of their spending habits.

3. They spent all that they earned.

4. They didn’t earn all they spent.

5. They failed to discipline themselves to invest a reasonable amount of each paycheck.

Now, here are the major cornerstones of a stable and happy life1. Having no debt, including your mortgage (and

we can speed up that process by making one extra house payment a year).

2. Having a six-month reserve of cash, sufficient to cover all of your monthly expenses.

3. Investing at least 10 percent of your take-home pay.

4. If needed, developing a secondary source of income that makes the first three achievements possible.

Remember, one of the main reasons why people get into debt is because they spend more than they earn!

Our choices are to either raise our income to the level of our needs, or lower our needs and wants to the level of our income. Which is acceptable to you?

And now, the beginning of the end of spending money on interest payments.

Getting Started

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The Proven System For Your Debt Freedom

Excessive personal debt — especially credit card debt — is a major problem for millions of Americans for several reasons:

Credit card issuers are sending billions of offers for new credit card accounts each year, making access to credit much easier and often beyond the current means of the person receiving the access to credit to pay off within a reasonable period of time.

2. Once access to credit is available, the human tendency toward “instant gratification,” or for using credit to satisfy our needs or our wants, is likely to find a person using the credit and exposing themselves to pay interest for years or even decades into the future.

3. The major danger of having access to credit is that it forces us to spend tomorrow’s money on today, and the cumulative purchases often lead to a growing, unpaid balance that is beyond one’s ability to repay within a reasonably short period of time.

4. With 21st century communication, the ads and offers presented to us by the media and advertisers bring an emotion-driven appeal into our homes, intensifying our desire to acquire things that are beyond our means.

The Problem? Debt

“What are we going to do with all these bills?”

“The difference that DebtBuster® has made in our lives is pretty significant on both a financial and emotional level.”

-Shannon and Chris TibbettsAdvoCare Independent Distributors 1.

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The Proven System For Your Debt Freedom

The Solution? The DebtBuster® StrategyThe DebtBuster strategy is not only designed to bring a simple and effective solution to debt, but is also designed to create a new mindset about money — how to use it, how to change the thinking habits that cause our debt and how to use money to effectively pay down debt.

Perhaps the greatest benefit to be derived from applying the concepts of DebtBuster is the peace of mind a person finds when they are, in fact, in control of their debt.

Why does the DebtBuster strategy work? It’s simple. First, you must stop spending money you don’t have on things you don’t need. Then, by applying the largest monthly payment amount you can afford toward one targeted debt at a time while paying only the minimum monthly payments on all of the rest of your debts — you focus your efforts on an attainable goal. You’re still making your minimum monthly payments on the other debts thereby avoiding negative comments on your credit history and thus helping you maintain and even improve your credit status. Once you have eliminated the first debt, the next month you can apply that payment you just freed up toward the next targeted debt on your list. It really is that simple. Eventually, you will gain momentum as you see your debt shrink one creditor at a time. You can start from where you are right now.

Take a closer look at the two most important words in the DebtBuster language

Targeted Creditor: Using the DebtBuster system and following the directions we’ll present to you, you’ll target your creditors one at a time. First, take aim at the one you can pay off fastest regardless of what the creditor’s interest rate may be compared to the others. Direct every spare dollar to the first Targeted Creditor. If you don’t have extra income, but are paying a bit over the minimum payment due to other creditors, take that small extra amount you’re paying to others and direct it to the first Targeted Creditor.

Once you enter all of your debt into the worksheet on page 10 and do the simple calculations, you’ll know who your first Targeted Creditor is, who the second is, the third and so on. After you’ve paid off the first Targeted Creditor, take the amount of money you’ve been directing toward that source and roll it over into the normal amount you’ve already been paying to the second Targeted Creditor. Each time a creditor gets paid in full, the amount of money you have available to pay for the next one increases, giving you momentum in paying down your debt. This is the very essence of the power of DebtBuster. It’s simple and — with discipline — highly effective.

Momentum Money: If you have access to any extra money (i.e. supplemental earnings, what’s left after your bills and savings goals have been met), by spending less or earning more, whether a little or a lot, that’s your Momentum Money. You’ll want to direct that amount toward your first Targeted Creditor. The more Momentum Money you can come up with, the faster you’ll pay down debt. But remember, you can tap into the power of the DebtBuster system for paying down your debt and make it work for you, whether you have extra money or not. Momentum Money can, however, accelerate the process of paying off debt and save a significant amount of your income in the process.

“Discipline and Momentum Money have helped me pay off some balances. I continue to use the DebtBuster® system to help me reduce my debt; it has given me

a plan to pay off my car.”

-Shannon BrownAdvoCare Independent Distributor

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On the worksheet that follows, list all your debts that cost you interest each month: credit cards, mortgage and auto loans, as well as any other loan that has an outstanding balance. These go into the “Creditor” column.

2. For each of your creditors, enter the full balance still owed in the “Balance Owed” column.

3. For each of your creditors, enter the amount of each monthly payment required in the “Monthly Payment” column.

4. For each of your bills, divide the “Balanced Owed” by the “Monthly Payment” you normally make. Put the number from each of those calculations in the “Balance Divided By Payment” column for that creditor. AN EXAMPLE: Let’s say you owe a balance of $2,000, and the minimum monthly payment due is $80. Divide the $2,000 by 80; the answer is 25. Enter the number 25 under the “Balance Divided By Payment” column for that creditor. Then, repeat this procedure for each of your creditors, calculating the numbers for each creditor.

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5. Remember the old joke: How do you eat an elephant? Answer: One bite at a time. Well, that’s what you are doing in this step — taking one bite at a time from your debt. You’ve completed all your calculations, and you’re ready to establish your “Bite Order.” Find the creditor with the lowest number in the “Balance Divided by Payment” column. Enter the number “1” in the next “Bite Order” column. Continue this process until you establish the “Bite Order,” or payoff order, for each creditor.

6. The creditor with the number “1” is to be your priority Targeted Creditor. You attack this one first with the full amount of your Momentum Money, plus the payment you usually make. So, if you normally make a $50 payment on that balance, you now make $50 plus the $20 you’ve managed to free up from other sources, your Momentum Money. You’re going to keep doing this until the balance for your first Targeted Credit is paid in full — a zero balance.

7. When your priority one Targeted Creditor is paid off, take the amount of money you’ve been paying to that creditor (your $50 normal payment plus your extra $20 in Momentum Money, for a total of $70), combine it with the minimum payment you’ve been making to your priority two Targeted Creditor and attack number three.

The guidance provided in this Worksheet is intended for educational purposes only. Be sure to consult a financial professional prior to relying on the results.

Your Personal Worksheet

Creditor BalanceOwed

Monthly Payment

Balance Divided By Payment

Bite Order/Payoff Order

Date Consumed

Your Personal DebtBuster® Worksheet

©2017 AdvoCare. All rights reserved.PDF available at www.advocare.com/DebtBuster®

The Proven System For Your Debt Freedom

$2,000 / $80 = 25

“We looked into the DebtBuster® program in April 2014 and started to implement the principles we learned. With daily commitment, we started to

see the principle of our student loans drop.”-Amanda and Phil Anson

AdvoCare Independent Distributors

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1. Once you have targeted the creditor with the lowest number on your Worksheet, concentrate on completely paying off this creditor first. The interest rates are not the key factors in this plan. What’s important is finding the creditor you can pay off fastest.

2. Use whatever extra money you can free up — your Momentum Money — to pay the first Targeted Creditor. The faster you pay off the first account, the faster you can use the money you have been directing toward your first Targeted Creditor and apply it to the second. You are rolling over the payment money from the first (your minimum payment plus your Momentum Money) and doubling up on the second, which will result in the second Targeted Creditor being paid off much faster.

3. With the second Targeted Creditor paid off, use the money you were paying to the first Targeted Creditor and second Targeted Creditor, and apply them both to your third Targeted Creditor.

4. As you pay off each creditor, the money

you used for that payment is simply added to what you have been paying to the next creditor. The amount you have to pay down each debt constantly increases as each creditor is paid off, and each creditor tends to be paid off faster than it would have otherwise.

5. The Momentum Money you create can accelerate your progress significantly. But remember, even if you don’t have extra money, you can still use the DebtBuster® system. It will just take longer and, over time, cost you more for the interest you pay. The point is not how long it takes, the point is to pay down your debt and stop the process of paying a major part of your income on interest payments.

The question is not whether the DebtBuster system will work for you. The question is whether you will work with the system. Believe in yourself and the results will be worth it!

Steps to Paying Down Debt

Develop a Payment ScheduleUnderstanding how long it will take to pay down your debt can help you see the big picture. Let’s say the total amount you owe is $10,000. On the Payment Schedule, which for illustrative purposes incorporates an interest rate of 10 percent, go down to the “Total Debt Amount” column to $10,000. As you move to the right under “Year 1,” you’ll see that one would need to make payments of $879 each month to consume the entire debt in a year. Under “Year 2,” you’ll see that the total

of monthly payments would need to be $461 to eliminate that debt in two years. And so on across the columns.

If $212 a month was paid toward the debt, it would take five years to pay off the original $10,000 plus over $2,700 in interest. If $461 was paid each month, an extra $249 over the $212, then the entire amount could be paid off in just two years — less than half the time — and save over $1,000 in interest.

Payment Schedule Total Debt

AmountInterest

Rate 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years

$5,000 10% $440 $231 $161 $127 $106 $93

$10,000 10% $879 $461 $323 $254 $212 $185

$15,000 10% $1,319 $692 $484 $380 $319 $278

$20,000 10% $1,758 $923 $645 $507 $425 $371

$30,000 10% $2,637 $1,384 $968 $761 $637 $556

$40,000 10% $3,517 $1,846 $1,291 $1,015 $850 $741

$50,000 10% $4,396 $2,307 $1,613 $1,268 $1,062 $926

$75,000 10% $6,594 $3,461 $2,420 $1,902 $1,594 $1,389

$100,000 10% $8,792 $4,614 $3,227 $2,536 $2,125 $1,853

$125,000 10% $10,792 $5,768 $4,033 $3,170 $2,656 $2,316

$150,000 10% $13,187 $6,922 $4,840 $3,804 $3,187 $2,779

$200,000 10% $17,583 $9,229 $6,453 $6,453 $4,249 $3,705

$250,000 10% $21,979 $11,536 $8,067 $8,067 $5,312 $4,631

$300,000 10% $26,375 $13,843 $9,680 $9,680 $6,374 $5,558

©2017 AdvoCare. All rights reserved.

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The Proven System For Your Debt Freedom

“How do you eat an elephant?”

“One bite at a time.”

The information provided by this Payment Schedule is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.

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The Proven System For Your Debt Freedom

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