Gordon: STUDENT DEBT IN

AMERICA HAS CLIMBED TO ONE

TRILLION DOLLARS.

SO MANY TIMES I PETE

PEOPLE WHO HAVE $100,000

SPENT TO GET A DEGREE IN

GERMAN POLKA HISTORY.

WHERE ARE THEY GOING TO GET

THIS MONEY BACK.

Gordon: THE COLLEGE

CRISIS ON TODAY'S "700 CLUB

INTERACTIVE."

*

[APPLAUSE]

Gordon: WELCOME TO THE

SHOW.

YOU MAY HAVE HEARD THE

PHRASE "STICKER SHOCK," AND

IF YOU'RE GOING TO BE PAYING

FOR COLLEGE THIS YEAR, GET

READY FOR IT BECAUSE TUITION

PRICES AT SOME SCHOOLS HAVE

GONE UP AS MUCH AS 40%.

Terry: EXPERTS ARE

SAYING THAT STUDENT LOAN

DEBT COULD BECOME THE WORST

FINANCIAL CRISIS FOR THE

UNITED STATES SINCE THE

HOUSING MARKET CRASH.

HOWEVER, AS EPHRAIM GRAHAM

REPORTS, SOME STUDENTS ARE

WORKING HARD TO AVOID GOING

INTO DEBT TO PAY FOR THEIR

EDUCATION.

IT WAS VERY STRESSFUL TO

START.

Reporter: CHRISTOPHER

WELLS IS A MAN ON A

MISSION.

EARN A DEGREE DEBT-FREE.

MY FIRST YEAR MY MOTHER

HAD TO TAKE MONEY OUT OF THE

401K PLAN.

WE HAD A DEAL, AND SHE SAID

SHE WOULD PAY THE FIRST YEAR

OF SCHOOL.

BUT EVERY YEAR AFTER THAT, I

HAVE TO PAY FOR IT MYSELF OR

FIGURE OUT A WAY TO PAY FOR

IT.

Reporter: HOW DOES HE

DO IT?

THE 20-YEAR-OLD WORKS

SUMMERS INSTEAD OF CHILLING

OUT.

THIS YEAR HE SPENT 40 HOURS

A WEEK AS AN INTERN AND

WAITS TABLES ON THE WEEKENDS

AND HE LIVES AT HOME AND

COMMUTES TO CLASS.

I HAD THE OPPORTUNITY TO

LIVE ON COMPAS AND I COULD

HAVE TAKEN OUT A LOAN, BUT I

CHOSE NOT TO.

THAT WAS ONE OF THE BIGGEST

DECISIONS FOR ME.

Reporter: WHILE IT

HASN'T BEEN EASY, THIS HONOR

STUDENT IS ON TRACK TO

GRADUATE NEXT YEAR WITH NO

STUDENT LOAN DEBT.

SOME OF HIS CLASSMATES WON'T

BE ABLE TO ENJOY THE SAME

FREEDOM.

SOME OF THEM ARE, AND

SOME AREN'T.

SOME ARE ON CAMPUS AND THEIR

PARENTS PAID FOR THEIR

TUITION AND THEY'RE GOING

WITH THE MOTION.

THAT'S JUST KNEW ME.

Reporter: THE LATEST

SHOWS THAT STUDENT DEBT IN

AMERICA HAS CLIMBED TO

$1 TRILLION.

THE AVERAGE BALANCE, ABOUT

$23,000.

BUT SOME COLLEGE GRADUATES

ARE LOOKING AT MORE THAN

$100,000 IN THE RED.

THAT DEBT IS EVEN TOUGHER TO

PAY BACK IN TODAY'S ECONOMY

WHERE MOST COLLEGE GRADUATES

CAN'T FIND A JOB.

SO MANY TIMES I MEET

PEOPLE WHO HAVE $100,000

SPENT TO GET A Ph.D. IN

GERMAN POLKA HISTORY.

WHERE ARE THEY GOING TO GET

THIS MONEY BACK.

Reporter: DAVE RAMSEY

SAYS STUDENTS MUST CHANGE

THEIR THINKING WHEN IT COMES

TO COLLEGE.

WE HAVE TO BREAK THE

MINDSET IN ORDER TO BE A

STUDENT YOU HAVE TO HAVE A

STUDENT LOAN.

LET'S GO BACK TO THE

OLD-FASHIONED WAY OF

ACTUALLY PAYING FOR IT.

IT IS DIFFICULT, BUT IT'S

CALLED WORK.

Reporter: THAT WORK

BEGINS YEARS BEFORE EVEN

APPLYING FOR COLLEGE.

STEP ONE, CHOOSE A SCHOOL

YOU COULD ACTUALLY AFFORD.

PERHAPS A COMMUNITY COLLEGE

TO GET STARTED.

THEN, LOOK FOR FREE MONEY IN

THE FORM OF GRANTS AND

SCHOLARSHIPS.

YOU'VE GOT TO APPLY FOR

SCHOLARSHIPS.

THERE ARE LOTS OF THEM OUT

THERE.

YOU HAVE TO TAKE CLASSES ON

HOW TO TAKE YOUR S.A.T.s,

SO YOU'RE SCORES COME UP TO

GET SCHOLARSHIPS.

AND W-O-R-K HAS NOT KILLED

ANYONE.

Reporter: AND WHEN HAY

MAKE IT TO CAMPUS, WATCH OUT

FOR THE LIFESTYLE EXTRAS,

LIKE PIZZAS AND PARTIES.

THE AVERAGE COLLEGE

STUDENT GRADUATING THIS YEAR

HAD $27,900 IN STUDENT LOAN

DEBT.

AND THE INTERESTING THING IS

THAT'S ABOUT WHAT THEY SPENT

OVER FOUR YEARS TO LIVE

OFF-CAMPUS, IN AN APARTMENT,

TO EAT OUT AND ATTEND SOCIAL

FUNCTIONS ASSOCIATED WITH

COLLEGE.

SO, REALLY, THOSE DOLLARS

THAT DROVE THEM INTO DEBT

WERE NOT EDUCATION DOLLARS.

THEY WERE LIFESTYLE

DOLLARS.

Reporter: A LESSON

CHRISTOPHER WELLS HAS

ALREADY MASTERED.

MY MOTHER ALWAYS SAID TO

ME, IF YOU AIN'T GOT IT,

DON'T GET IT.

IF I DON'T HAVE IT, I'M NOT

GOING TO GET IT.

IF I DON'T HAVE A CASH FOR

IT, I'M NOT GOING TO BUY

IT.

Reporter: WELLS DOESN'T

CARRY A CREDIT CARD OR EVEN

A CAR LOAN.

HE STILL DRIVES HIS 2001

CHEVY HIS PARENTS GAVE HIM

BACK IN HIGH SCHOOL.

LIFE IS NOT ALL ABOUT

PARTYING AND GOING OUT WITH

YOUR FRIENDS.

IF YOU WANT TO BE SUCCESSFUL

IN LIFE, YOU HAVE TO WORK

AND SAVE YOUR MONEY AND YOU

HAVE TO BUDGET.

IT IS VERY ESSENTIAL.

Reporter: EPHRAIM

GRAHAM, CBN NEWS.

Gordon: FOR MORE ON

THIS TOPIC, JOINING US NOW

IS RACHEL CRUZ, FINANCIAL

COUNSELLOR AND THE DAUGHTER

OF DAVE RAMSEY.

THANKS FOR HAVING ME.

Gordon: DID YOU TAKE

OUT ANY FINANCIAL LOANS FOR

YOUR COLLEGE?

I DID NOT, NO.

GROWING UP, MOM AND DAD

SHOWED US HOW TO STAY AWAY

FROM ALL KINDS OF DEBTS,

INCLUDING STUDENT LOANS AND

CREDIT CARDS.

I WENT TO AN IN-STATE PUBLIC

UNIVERSITY, AND I COULD

AVOID STUDENT LOANS AND

CREDIT CARDS.

ALL OF THE ABOVE.

Gordon: WHAT WOULD YOU

SAY IS FOR STUDENTS

LOOKING -- SHOULD THEY BE

LOOKING IN-STATE, SHOULD

THEY BE LOOKING FOR THE

BARGAIN IN HIGHER EDUCATION

OR NOT?

NO.

I THINK ABSOLUTELY -- I'M

NOT MAD AT PRIVATE SCHOOLS

OR IF YOU GO OUT OF STATE,

AS LONG AS YOU CAN PAY FOR

THEM.

IF YOU CAN'T PAY FOR THEM,

DON'T STEP OVER THE STEP

LINE.

STAY IN-STATE, AND TAKE THAT

IN-STATE TUITION.

AND COMMUNITY COLLEGE -- DO

THAT FOR YOUR FIRST YEAR OR

TWO, BECAUSE THAT'S YOUR

BASIC COURSES, ANYWAY.

A LOT OF COMMUNITY COLLEGES

THAT ARE NEXT TO STATE

SCHOOLS, YOUR CREDITS WILL

TRANSFER, NO PROBLEM.

THEY DO IT ALL OF THE TIME.

LOOK AT YOUR OPTIONS, FOR

SURE.

Gordon: A LOT OF PEOPLE

ARE SAYING JUST TO LOOK AT A

FOUR-YEAR COLLEGE THAT SOME

KIND OF DEBT IS INEVITABLE.

WHAT WOULD YOU SAY TO THAT?

Gordon: NO, I DON'T

AGREE WITH THAT.

I'VE BEEN TRAVELLING AROUND

THE COUNTRY TALKING TO

THOUSANDS OF COLLEGE

STUDENTS ABOUT THIS TOPIC.

AND SOME HAVE DONE IT

WRONG.

THEY'VE GONE OUT OF STATE,

AND TAKEN OUT LOANS FOR

THEIR LIVING EXPENSES AND

ALL OF THE ABOVE.

BUT THEN I TALKED TO

STUDENTS THAT HAVE STAYED IN

STATE, AND THEY WORKED, AND

THEY'RE GRADUATING

DEBT-FREE, EVEN WITH MONEY

SAVED IN THE BANK.

RESEARCH IS SHOWING THAT THE

AVERAGE COLLEGE STUDENT

WORKS 20 HOURS A WEEK.

THEY CAN PAY THEIR WAY

THROUGH A STATE SCHOOL, AND

THAT DOESN'T EVEN INCLUDE

SCHOLARSHIPS.

THAT'S FREE MONEY.

YOU CAN BE A STUDENT WITHOUT

STUDENT LOANS, BECAUSE I'M

SEEING IT ALL OVER CAMPUSES

ALL OVER AMERICA.

IT IS NOT THE COMMON THING,

BUT IT IS OUT THERE.

Gordon: TELL US ABOUT

THE COMMON THING.

WHAT ARE SOME OF THE COMMON

MISTAKES THAT STUDENTS MAKE

REGARDING THEIR OWN

FINANCES?

IT'S INTERESTING, THIS

IDEA OF COLLEGE, THEY DON'T

THINK THROUGH THIS IDEA OF

EDUCATION.

THEY SIGN THEIR NAME ON THE

DOTTED LINE.

THEY DECIDE WHERE THEY WANT

TO GO TO SCHOOL, WHERE ALL

OF THEIR FRIENDS ARE GOING,

OR WHAT LOOKS GLAMOROUS, AND

THEY GO SIGN THEIR NAME INTO

HUNDREDS OF THOUSANDS OF

DOLLARS IN STUDENT LOAN

DEBTS, OR $60,000 IN STUDENT

LOAN DEBT AND THEY'RE NOT

THINKING.

AND THE DECISIONS YOU MAKE

IN THOSE FOUR YEARS OF YOUR

LIFE CAN EFFECT YOU THE NEXT

40 YEARS OF YOUR LIFE.

YOU HAVE TO THINK

LONG-TERM.

COLLEGE STUDENTS DON'T THINK

LONG-TERM.

WHAT SCHOOL DO I WANT TO GO

TO RIGHT NOW.

I WANT TO LIVE IN AN

APARTMENT.

I WANT TO LIVE WITH A CREDIT

CARD.

AND THEY'RE NOT SEEING THE

EFFECTS OF ALL OF THAT UNTIL

THEY'RE GRADUATING COLLEGE.

AND THEN REALITY HITS THEM.

Gordon: WHAT WOULD YOU

SAY TO SOMEBODY WHO MADE THE

MISTAKE AND WASN'T THINKING

LONG-TERM, WAS JUST THINKING

THAT IF THEY GET THAT DEGREE

ALL THEIR DREAMS WILL COME

TRUE AND THEY'LL BE ABLE TO

PAY IT OFF EASILY.

WHAT WOULD YOU SAY TO THEM?

WHAT'S THE BEST PATH FOR

THEM TO GET OUT OF DEBT?

I WOULD SAY THERE IS

HOPE.

YOU CAN BE FREE OF YOUR

STUDENT LOAN.

WE TEACH PEOPLE WHEN YOU'RE

PAYING OFF YOUR DEBT, LIST

YOUR DEBTS SMALLEST TO

LARGEST, REGARDLESS OF THE

INTEREST RATES.

PAY MINIMUM PAYMENTS ON

EVERYTHING AND YOU ATTACK

THAT SMALLEST DEBT.

IF YOU HAVE A CREDIT CARD OR

A CAR LOAN, THAT MAY COME

BEFORE YOUR STUDENT LOAN.

THE AVERAGE FAMILY GETS OUT

OF DEBT IN 18 MONTHS.

IT IS DOABLE, BUT YOU'RE FOG

TO HAVE TO LIVE A VERY TIGHT

LIFESTYLE TO GET RID OF THAT

STUDENT LOAN.

Gordon: WHAT ABOUT THE

BASIC DECISION TO GO TO

COLLEGE.

IF FAMILIES DON'T HAVE THAT

MONEY TO EVEN PAY FOR THE

STATE SCHOOL, SHOULD THEY

EVEN CONSIDER GETTING A

COLLEGE EDUCATION?

YOU KNOW, I THINK SO.

I MEAN, I KNOW COLLEGE ISN'T

FOR EVERYONE, BUT I THINK

HIGHER EDUCATION IS A GREAT

THING.

IF YOU'RE A STUDENT AND YOUR

FAMILY ISN'T ABLE TO PAY FOR

IT, LOOK INTO SCHOLARSHIPS.

START LOOKING AT FREE MONEY

AND GRANTS.

PICK YOUR SCHOOL, WHAT YOU

CAN FORD.

AFFORD.

AGAIN, GO TO A COMMUNITY

COLLEGE AND START WORKING.

20 HOURS A WEEK, YOU CAN BE

PAYING YOUR WAY THROUGH A

STATE SCHOOL.

EVEN WITHOUT MOM AND DAD'S

HELP, YOU CAN DO IT.

IT IS POSSIBLE.

I AM SEEING THAT ALL OVER

WHEN I'M TRAVELLING.

IT IS DOABLE.

Gordon: YOU HAVE A

D.V.D. SERIES OUT,

"GRADUATES' SURVIVAL GUIDE,

SETTING YOU UP FOR SUCCESS

IN COLLEGE."

AND YOU GO THROUGH THE

TRAITS OF A MILLIONAIRE.

WHEN SL SHOULD PEOPLE BE

START THINKING THEY CAN

REALLY MAKE IT, AND WHAT

TRAIT -- WHAT WOULD YOU SAY

WAS THE NUMBER ONE TRAIT

THAT AN 18-YEAR-OLD,

19-YEAR-OLD, SHOULD ADOPT TO

ACHIEVE THAT.

IN THE BOOK, "THE

MILLIONAIRE NEXT DOOR," HE

SAYS THAT 78% OF

MILLIONAIRES SAY THE NUMBER

ONE KEY OF BUILDING WEALTH

IS GETTING OUT OF DEBT AND

AVOIDING DEBT.

BECAUSE WHEN YOU'RE INCOME

COMES AND IT IS GOING OUT IN

PAYMENTS, IT IS HARD TO

BUILD WEALTH.

IT IS IMPOSSIBLE FOR ANYONE

TO BECOME A MILLION SQUARE

-- MILLIONAIRE, AND

ESPECIALLY FOR TEENAGERS.

IF YOU TESTED $200 A MONTH

WHEN YOU'RE A TEENAGER, THE

TIME YOUR RETIRING, YOU'LL

HAVE $1 MILLION.

THE DECISIONS YOU'RE MAKING

NOW ARE SO CRUCIAL.

Gordon: FOR MORE ON HER

D.V.D., ALL YOU HAVE TO DO

IS GO TO OUR WEBSITE AND

WE'LL REFER YOU OVER HOW TO

GET A COPY.

RACHEL, THANKS FOR BEING

WITH US.

THANK YOU FOR HAVING US.

Gordon: WHEN WE COME

BACK, ONE COLLEGE STUDENT IS

WORKING FIVE PART-TIME JOBS

WHILE WAITING FOR HIS DREAM

JOB.

HIS STORY AFTER THIS.

Terry: EARLIER IN THE

SHOW, WE TALKED ABOUT THE

EXPENSE OF A COLLEGE

EDUCATION.

MANY PEOPLE LOAD THEMSELVES

DOWN IN DEBT AND GRADUATE

WITH NO GUARANTEE OF WORK.

DESPITE HIS CIRCUMSTANCES,

THE MAN IN OUR NEXT STORY

HAS FOUND A WAY TO MAKE IT,

EVEN WHEN THE GROWING GETS

TOUGH.

Reporter: HI, I'M

RICHMOND, I'M 22 YEARS OLD

AND I'M A RECENT GRADUATE,

AND THIS IS MY STORY.

I THINK GROWING UP, FOR MOST

OF US, WE'RE OFTEN TOLD

THAT, YOU KNOW, HAVE YOU TO

GO TO SCHOOL AND YOU HAVE TO

GET THIS EDUCATION AND HAVE

YOU TO DO THIS AND YOU HAVE

TO DO THAT IN ORDER TO BE

SUCCESSFUL.

WHAT I WENT AND DID IS I

WENT TO SCHOOL, AND I DON'T

REGRET IT.

IT WAS A GREAT EXPERIENCE.

GROWING UP FOR ME, MUSIC AND

FILM WERE VERY IMPORTANT.

MY GRANDMOTHER WOULD TELL

YOU THAT I WAS PLAYING

HARMONICA BEFORE I COULD

SPEAK.

I WOULD COME HOME EVERY DAY

AFTER SCHOOL AND WATCH

TELEVISION.

AND MY PARENTS WOULD ALSO

TAKE US TO THE MOVIES JUST

ABOUT EVERY WEEKEND.

THAT'S KIND OF HOW I FELL IN

LOVE WITH FILM.

WITH MUSIC, I WOULD PLAY

DIFFERENT INSTRUMENTS.

I PLAYED CLARINET AND

TRUMPET AND PIANO.

I DECIDED I WANTED TO BE A

RECORD PRODUCER.

SO I WENT TO HAMPTON

YESTERDAY AND GRADUATED FROM

THERE, AND I'M CURRENTLY

WORKING FIVE JOBS.

SO I'VE WORKED THESE FIVE

JOBS, BUT ULTIMATELY THE

GOAL IS TO GET ONE FULL-TIME

JOB THAT WILL BE ABLE TO

SUSTAIN ME AND BRING ENOUGH

INCOME IN SO I CAN CONTINUE

TO PAY OFF THOSE LOANS AND

MOVE FORWARD WITH MY FUTURE

AND DO WHAT I BELIEVE THAT

GOD HAS DESIGNED ME TO DO.

I THINK AT TIMES WE ALL CAN

GET DISCOURAGED IF YOU'RE

NOT EXACTLY IN THE PLACE

THAT YOU WANT TO BE, BUT I

THINK, FOR ME, I'VE BEEN

ABLE TO REALLY SEE HOW GOD

WANTS TO USE ME WHERE I AM.

I KIND OF GO WITH THAT AND

RUN.

PEOPLE PUT EXPECTATIONS ON

YOU, AND PROBABLY MOSTLY

YOUR FAMILY.

AND YOU HAVE TO GO OUT AND

GET -- YOU'RE SUPPOSED TO BE

MAKING THIS MUCH MONEY AND

BE AT THIS LEVEL, BUT JUST

LIKE WITH ANY OTHER

INDUSTRY, IT TAKES TIME AND

YOU HAVE TO WORK YOUR WAY UP

AND BE WILLING TO MAKE

SACRIFICES.

I REALLY FEEL LIKE RIGHT NOW

GOD IS REALLY SPEAKING TO ME

ABOUT BEING PATIENT, BUT, AT

THE SAME TIME, BEING PATIENT

AND NOT BEING PASSIVE.

I WOULD TELL ANYONE WHO IS

IN THE SAME POSITION THAT I

AM, TO DEFINITELY CONTINUE

TO HAVE HOPE AND TRUST THAT

GOD IS GOING TO

STRATEGICALLY PLACE YOU

WHERE HE NEEDS YOU TO BE,

PROBABLY NOT ALWAYS WHERE

YOU WANT TO BE.

WE ALL GET DISCOURAGED, AND

WE MAY WANT TO QUIT OR WE

MAY WANT TO FEEL LIKE I NEED

TO MOVE ON TO SOMETHING

ELSE, AND SAY GOD IS TELLING

ME TO DO SOMETHING ELSE,

WHEN REALLY HE IS JUST

TELLING YOU TO KEEP GOING,

KEEP RUNNING AND KEEP

TRUSTING IN ME.

THAT'S WHAT I WOULD TELL

EVERYONE ELSE WHO IS JUST

LIKE ME.

Terry: GOOD ADVICE FOR

PEOPLE WHO AREN'T JUST LIKE

HIM.

JUST SOLID ADVICE.

WELL, WE WANT YOU TO KNOW

THAT WE HAVE RECEIVED SOME

OF YOUR QUESTIONS.

AND WE'D LIKE TO ADDRESS

SOME OF THEM.

THIS IS MEREDITH, WHO WRITES

IN AND SAYS, "GORDON, I HAVE

A QUESTION ABOUT MY SCHOOL

LOANS.

BECAUSE SCHOOL LOAN DEBT

DOESN'T APPEAR TO BE BAD

DEBT ON YOUR CREDIT, SHOULD

YOU PAY OFF OTHER THINGS

FIRST BEFORE PAYING OFF YOUR

SCHOOL LOAN?"

Gordon: YOU'RE GETTING

INTO THE TRAP MOST PEOPLE

GET INTO, YOU'RE MORE

FOCUSED ON YOUR CREDIT SCORE

THAN YOUR BALANCE SHEET.

BUT BALANCE SHEET IS

ACTUALLY MORE IMPORTANT.

WHEN YOU GO TO A BANK AND

LOOK FOR A LOAN, YEAH, THEY

CHECK YOUR CREDIT SCORE, BUT

THE DECISION ON WHETHER TO

EXTEND THE LOAN IS GOING TO

BE MADE BASED MORE ON YOUR

BALANCE SHEET.

AND THAT'S TRUE FOR ANY

BUSINESS.

SO START THINKING OF YOUR

LIFE AS YOU'RE IN BUSINESS.

AND YOU'RE IN THE BUSINESS

OF YOU.

SO WHEN YOU START THINKING

THAT WAY, IT REALLY REOR

YENTS YO REORIENTS YOU TO

WHAT IS IMPORTANT.

AND YOU START THINKING, I

NEED TO INVEST IN ME.

I NEED TRAINING AND I NEED

SKILL SETS AND I NEED THIS

FOR MY BUSINESS TO SUCCEED.

AND YOU GET OFF THE TRAP OF

THINKING ABOUT YOUR CREDIT

SCORE.

A GOOD CREDIT SCORE IS GOOD

TO HAVE.

WHAT THAT DOES FOR YOU IS

LOWER YOUR INTEREST RATE,

BUT IF YOU'RE TRYING TO STAY

OUT OF DEBT, THEN YOU'RE NOT

REALLY ALL THAT CONCERNED

ABOUT LOWER YOUR INTEREST

RATE.

YOU'RE MORE CONCERNED ABOUT

YOUR BALANCE SHEET.

SO THE KEY HERE IS TO

ANALYZE YOUR DEBT POSITION

BASED ON WHAT'S THE HIGHEST

INTEREST RATE YOU'RE PAYING,

AND TARGET THAT ONE AND PAY

THAT OFF FIRST.

NOW, SOME PEOPLE DON'T HAVE

THE DISCIPLINE TO REALLY

LOOK AT THAT AND SAY, OKAY,

I'VE GOT TO REALLY FOCUS ON

THE HIGHEST INTEREST RATE.

AND THERE IS DISCOURAGEMENT

THAT COMES ALONG THE WAY AS

YOU'RE TRYING TO GET OUT OF

DEBT.

SOME PEOPLE ADVICE PAY OFF

THE SMALLEST ONE FIRST, SO

THAT WAY YOU HAVE THE

SUCCESS OF AT LEAST

ELIMINATING ONE OUT OF YOUR

LIFE.

BUT REORIENT YOUR WHOLE

THINKING OF HOW CAN I START

BUILDING A BALANCE SHEET AND

BUILDING ASSETS THAT I OWN

DEBT-FREE, AND HOW DO I

BUILD INVESTMENTS IN THAT

KIND OF THING.

FIRST GET OUT OF DEBT, BUT

START THINKING IN TERMS OF

BALANCE SHEET AND IT WILL

REALLY CHANGE YOUR LIFE.

Terry: IT REALLY TAKES

DELIBERATE EFFORT.

THAT'S WHAT I HEAR YOU

SAYING.

IT IS NOT ENOUGH TO WISH YOU

DIDN'T OWN THAT MUCH.

AND SOMETIMES WE KIND OF DO

THAT.

WE SORT OF GO THROUGH THE

GRUNT WORK OF PAYING THE

MINIMUMS EVERY MONTH, BUT

YOU'VE GOT TO HAVE A PLAN.

Gordon: ABSOLUTELY YOU

HAVE TO HAVE A PLAN, AND YOU

HAVE TO RESIST OUR CONSUMER

CULTURE.

Terry: BOY, THAT'S THE

TRUTH.

Gordon: AND THAT'S

REALLY HARD.

THERE IS A LOT OF PRESSURE

IN OUR CULTURE, FROM

ADVERTISING, TO GO OUT AND

BUY.

Terry: SPECIFICALLY TO

COLLEGE STUDENTS.

Gordon: WELL, TO

ANYBODY.

Terry: YES.

BUT THEY'RE VERY

VULNERABLE.

Gordon: AND

UNFORTUNATELY, AVERTISERS

TARGET 18 TO 34.

Terry: ABSOLUTELY.

Gordon: THERE IS A

REASON THERE ARE SO MANY

TELEVISION SHOWS FROM THE 18

TO 34 MARKET BECAUSE

AVERTISERS ARE GOING AFTER

THEM BECAUSE YOU HAVEN'T

LEARNED YET HOW TO RESIST

THAT AND SAY I NEED TO

PRIORITIZE, I NEED TO SAVE,

AND I NEED TO INCREASE.

AND SO YOU'VE REALLY GOT TO

RESIST TRYING TO BE A

CONSUMER AND BE AN INVESTOR,

TO SAY I'M INVESTING IN ME.

I'M A COMPANY, AND I NEED TO

BUILD MY BALANCE SHEET.

AND I NEED TO HAVE

INCOME-PRODUCING ASSETS, AND

THE BIBLE BACKS THAT UP.

WE GET CAUGHT UP IN I NEED

THE DREAM, TWO CARS AND A

BIG HOUSE AND THE COUNTRY

CLUB.

AND IF YOU BUY INTO THAT

LIE, YOU'RE GOING TO BE

BROKE.

THE BIBLE SAYS BUILD YOUR

BUSINESS, THEN BUILD YOUR

HOUSE.

WHEN YOU HAVE ENOUGH INCOME

COMING IN FROM

INCOME-PRODUCING ASSETS THAT

YOU CAN NOW SAY, OKAY, I CAN

GET A BETTER HOUSE, THEN DO

IT.

A LOT OF YOUNG PEOPLE BUY

INTO THE DREAM OF THE NEW

CAR.

UH-UH.

DON'T SPEND A LOT OF MONEY

ON A CAR BECAUSE THAT'S A

DEPRECIATING AS SET.

ONCE YOU BUY IT, IT IS NOT

EVER GOING TO GO UP.

NOT GOING TO HAPPEN.

Terry: PREFERRED

DESIRE.

Gordon: EVERY ONCE IN A

WHILE YOU GET A CAR THAT

WILL GET YOU TO WORK AND GET

YOU HOME.

AND LOOK AT TOTAL COSTS OF

OWNERSHIP, AND ALL THOSE

KINDS OF THINGS.

START THINKING OF YOURSELF

AS A BUSINESS.

IT WILL REALLY CHANGE YOU.

WHERE INSTEAD OF HOW DO I

RATE WITH MY PEERS, AND AM I

REALLY PUTTING ON THE RIGHT

IMAGE, THINK OF YOURSELF AS

A BUSINESS AND IT WILL

REALLY CHANGE.

Terry: YOU TALKED ABOUT

THE FACT THAT SOMETIMES, AS

ALL OF THESE ENTICEMENTS

COME TO YOU AT THE COLLEGE

AGE, YOU'RE NOT REALLY

PREPARED TO DEAL WITH THAT,

AND YOU HAVEN'T MATURED OR

EXPERIENCED THAT YET, BUT I

ALSO THINK ABOUT WHAT YOU'RE

TALKING ABOUT WITH THINKING

LONG-TERM IS SOMETIMES A NEW

CONCEPT AT THAT STAGE OF

LIFE.

RACHEL TALKED ABOUT IT

EARLIER, AND IT IS

IMPORTANT.

Gordon: TAKE A HINT

FROM THE ROTHCHILD WHO

BECAME VERY RICH IN EUROPE,

AND THEY SAID COMPOUND

INTEREST IS ONE OF THE GREAT

WONDERS OF THE WORLD.

WHEN YOU UNDERSTAND THAT

THINGS ARE SITTING AROUND

MAKING YOU MONEY,

COMPOUNDING INTEREST, THAT

IT JUST -- IT TAKES

SEEMINGLY A LONG TIME FROM A

SHORT-TERM PROSPECTIVE, BUT

SEVEN, 14 YEARS, COMPOUND

INTEREST, YOU'LL WONDER AT

HOW YOUR ASSETS HAVE GROWN.

LAUREN FROM Facebook

WRITES IN, "I OWE OVER

$64,000 IN STUDENT LOANS.

WHAT CAN I DO?

I FEEL LIKE I'M GOING TO PAY

THIS THE REST OF MY LIFE,

AND I CAN'T AFFORD TO PAY

ANYMORE THAN THE MINIMUM

PAYMENT."

WHAT DO YOU SAY TO THAT?

Terry: YOU ARE GOING TO

PAY FOR THE REST OF YOUR

LIFE.

I HAVE SEVERAL CHILDREN THAT

HAVE COLLEGE DEBT.

AND ONE OF THE THINGS

THEY'VE HAD TO DO, AND I'M

SURE IT IS FOR YOU, YOU

CAN'T CONSOLIDATE THE SAME

WAY YOU COULD BEFORE.

THEY CALLED AND TALKED TO

THE ORGANIZATIONS THAT THEY

HAD BORROWED FROM AND SAID

HOW CAN WE REDUCE THIS.

IT MEANS LONGER PAYMENTS,

BUT AT THE SAME TIME, IF YOU

COULD REDUCE THEM AND TAKE A

LITTLE BIT OF THAT EXTRA

THAT YOU'RE SAVING AND START

PUTTING AGAINST THE

PRINCIPLE OF THOSE THINGS,

THAT'S KIND OF WHAT SHE

TALKED ABOUT.

A LITTLE BIT GOES A LONG WAY

OVER A PERIOD OF TIME.

JUST DON'T GET SO

DISCOURAGED THAT YOU CAN'T

SEE THE END.

Gordon: YOU MAY HAVE

REALLY DONE IT, BUT I WOULD

GET REAL SERIOUS ABOUT YOUR

EXPENSES OUTSIDE OF THE

DEBT.

BECAUSE AS LONG AS YOU HAVE

THAT $64,00,000 DRAGGING

YOU DOWN, IT IS GOING TO BE

VERY HARD TO GET AHEAD.

THE QUICKER YOU GET RID OF

THAT ANCHOR, THE BETTER YOUR

LIFE IS GOING TO BE.

SO GET VICIOUS WITH

EXPENSES.

EVEN IF YOU HAVE TO SAY,

OKAY, I'M GOING TO GO TAKE A

ROOM AND SHARE A HOUSE.

Terry: SEVERAL HAVE

TAKEN A ROOM AT MOM AND

DAD'S HOUSE.

Gordon: SELL THE CAR

AND HAVE A GARAGE SALE WHERE

YOU GET RID OF EVERYTHING,

AND REALLY GET SERIOUS ABOUT

WHAT AM I SPENDING MONEY

ON.

THERE ARE WAYS TO ECONOMIZE

THAT YOU MAY NOT HAVE

THOUGHT ABOUT.

AND START LOOKING AT, ARE

THERE OTHER THINGS I CAN DO

TO EARN INCOME.

YES, JOBS TAKE A HUGE AMOUNT

OF TIME, BUT IS THERE

SOMETHING ELSE YOU CAN DO?

THERE ARE TWO WAYS TO GET

MADE: ONE IS CUT YOUR

EXPENSES, AND THE OTHER IS

INCREASE YOUR INCOME.

SO LOOK AT BOTH OF THOSE.

AND BE VICIOUS WHEN IT COMES

TO CUTTING EXPENSES BECAUSE

THERE'S A REAL EXPEDENTIAL

THING THAT HAPPENS.

WHEN YOU INCREASE INCOME,

TAXES COME IN AND OTHER

THINGS EAT AWAY AT INCOME.

WHEN YOU REDUCE EXPENSES,

THE GOVERNMENT DOESN'T GET

INVOLVED IN THAT.

IT WILL -- EVERY DOLLAR THAT

YOU DECREASE IN EXPENSES,

YOU CAN ADD TO PAYING THAT

$64,000.

THOSE WERE THE QUESTIONS.

IF YOU'VE GOT QUESTIONS FOR

US, WE ALWAYS WANT TO BE

HERE FOR YOU.

ALL YOU HAVE TO DO IS GO TO

OUR Facebook PAGE, OR

THERE ARE PLACES ON

700clubinteractive.com

WHERE YOU CAN ASK THEM.

STILL AHEAD, A YOUNG GIRL

BULLIES HER FRIENDS, AND

EVEN HER MOTHER.

FIND OUT HOW SHE HAD A

CHANGE OF HEART RIGHT AFTER

THIS.

Gordon: WE HEAR A LOT

ABOUT BULLYING HERE IN

AMERICAN SCHOOLS, AND IT IS

NOT MUCH DIFFERENT AND OTHER

COUNTRIES.

WE WANT TO SHOW YOU A

SUCCESS STORY FROM

CAMBODIA.

AND HERE IS HOW ONE

NEIGHBORHOOD BULLY BECAME A

MODEL CHILD.

Reporter: ALL OF THE

KIDS NEAR THIS SCHOOL LOVE

TO PLAY A GAME CALLED JACK

STONES.

THAT IS UNTIL 11-YEAR-OLD

SHAY LOSES HER TEMPER.

WHEN THAT HAPPENS, EVERYONE

SUFFERS.

I REALLY DID NOT LIKE THE

OTHER KIDS, EVEN WHEN THEY

WERE NICE TO ME.

THEY ALWAYS MADE ME MAD.

SO I FOUGHT WITH THEM.

Reporter: SHAY'S MOTHER

ALSO STRUGGLED WITH THE

LITTLE GIRL AT HOME.

SHE WAS A DIFFICULT

CHILD.

IF I ASKED HER TO HELP ME,

SHE WOULD DO THE EXACT

OPPOSITE.

I DID NOT KNOW WHAT TO DO.

Reporter: THEN ONE DAY

SHAY'S MOTHER ENCOURAGED HER

DAUGHTER TO WATCH A PROGRAM

ON TELEVISION, CBN NEWS

SUPER KIDS CLUB.

SUPER KIDS CLUB BEGAN TO

TEACH ME IT IS IMPORTANT TO

LISTEN TO MY PARENTS AND BE

KIND TO MY FRIENDS.

Reporter: AFTER

WATCHING ONLY A FEW TIMES,

SHAY PRAYED WITH THE HOSTS

AND ASKED JESUS TO COME AND

LIVE IN HER HEART.

WHEN I PRAYED, I FELT

DIFFERENT.

I THEN STARTED PRAYING FOR

MY FAMILY EVERY DAY.

Reporter: SHAY WENT TO

CHURCH IN HER VILLAGE, AND

SOON HER FAMILY STARTED

COMING WITH HER.

I'M SO HAPPY ABOUT THE

CHANGES THAT I'VE SEEN IN MY

DAUGHTER.

SHE IS GENTLE NOW AND KIND.

AND I DON'T NEED TO ASK HER

TO HELP AROUND THE HOUSE.

SHE JUST DOES IT ON HER

OWN.

I HAVE MANY GOOD FRIENDS

NOW AND WE HAVE LOTS OF

FUN.

I DON'T GET ANGRY WITH THEM

ANYMORE BECAUSE I HAVE JESUS

IN MY HEART.

Reporter: NOW EVERY

WEEKEND SHAY AND HER NEW

FRIENDS ENJOY WATCHING CBN'S

SUPER KIDS CLUB TOGETHER.

GOD CHANGED ME, AND I

WANT ALL OF MY FRIENDS TO

KNOW JESUS, TOO.

THANK YOU, CBN, FOR SUPER

KIDS CLUB.

Gordon: SUPER KIDS CLUB

AIRS WEEKLY IN CAMBODIA.

IT IS ONE OF THE TOP-RATED

CHILDREN'S SHOWS THERE.

AND IT IS WONDERFUL WHAT IS

HAPPENING WITH CHILDREN

AROUND THE WORLD.

AND IT'S NOT JUST CAMBODIA.

WE HAVE THE NUMBER ONE RATED

CHILDREN'S SHOW IN NEPAL

BEING PRODUCED OUT OF OUR

STUDIO IN DEHLI, AND THAT IS

BEING TRANSLATED INTO

NEPALESE, AND IT HAS JUST

TAKEN OFF AND CHILDREN ARE

WATCHING IT.

WE WANT TO REACH THE

CHILDREN OF THE WORLD WITH

THE GOSPEL, THE STORIES OF

THE BIBLE.

AND YOU CAN BE A PART OF IT

WHEN YOU JOIN THE

"SUPERBOOK" D.V.D. CLUB.

SO IF THAT'S FOR YOU, CALL

US.

1-888-777-1999.

JUST SAY I WANT TO JOIN.

I WANT TO BE A PART OF IT.

FOR YOUR GIFT OF $25, WE'LL

SEND YOU THE LATEST SEP

SEWED, WHICH IS ON --

EPISODE, WHICH IS ON THE 10

COMMANDMENTS, PLUS TWO MORE

COPIES SO YOU CAN SHARE IT

WITH YOUR FRIENDS AND

FAMILY.

SO DO IT.

BE A PART OF REACHING THE

CHILDREN OF THE WORLD WITH

THE GOSPEL.

1-888-777-1999.

THAT'S ALL THE TIME WE HAVE

FOR THIS PROGRAM.

WE LEAVE YOU WITH THESE

WORDS FROM FROM JAMES: "IF

YOU NEED WISDOM, ASK OUR

GENEROUS GOD AND HE WILL

GIVE IT TO YOU.

HE WILL NOT REBUKE YOU FOR

ASKING."

GOD BLESS YOU.

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