Hey everyone, it's Bill Poulty and welcome to the Poulty Podcast.

Today we're going to talk about paying off some debt, but we're going to look at it

completely differently than you probably have ever been looking at paying off debt.

Okay, so what is the way to look at paying off debt?

What I would like for you to think about is imagine that you have $100 worth of debt.

Okay?

Then let's assume that you have $100 worth of cash, right?

So you take the $100 plus the $100 of cash and what happens is you equal those out and

you have $0 net worth.

Do you follow me?

So over the math, $100 of debt and $100 worth of cash.

Okay, so they flatten out their even.

$0 is your net worth.

Now let's assume that you have $200 worth of cash, okay?

And $100 worth of debt.

Okay, so what happens now?

What happens now is we want to talk about something called increasing your equity value, okay?

What is equity value?

What equity value is is when you use something to create either more cash or more net worth.

So how do we do it?

How we do it is we pay off debt.

So remember our calculation, we were talking about how we had $200 worth of cash, I almost

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