How is it possible for me to still have, on a family level, including my wife and my student loans combined, over $200,000 still in student loans, even though I’ve earned somewhere over a million dollars when you combine all the earnings from my business and I’ve made close to half a million in profit in the last several years of my business?
Does Jerry Banfield Still Have Student Loan Debt?
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How is it possible still to have student loans?
Well, first, my wife went to law school and I went and got a master’s degree. Between the two of us, at one point, we had close to $300,000 in student loans.
So, we have paid down almost a hundred thousand on the principle of our loans in the last few years and we have probably paid fifty to a hundred thousand more in interest.
Student loans are absolutely the devil.
Do not borrow money to go to school, because even with all the money I’ve made, we still have student loans.
My wife and I still have student loans even though we have paid so much on them and when you look at the millions of dollars I’ve made in my business online, I’ve also spent a lot in order to make that and I’ve helped a lot of my friends start their own businesses.
I’ve spent hundreds of thousands on Facebook Ads before they banned me, hundreds of thousands on Google Adwords and I’ve paid out hundreds of thousands of dollars to my friends and freelancers to help me do everything that I’ve done online, and then I’ve paid the US government hundreds of thousands of dollars in taxes.
So, when you keep subtracting hundreds of thousands of dollars over and over again, and then I also bought fifty plus thousand dollars of Steem which I’m in the process of selling.
When you combine all of that, it amazingly still leaves over $200,000 in student loan debt.
Now, I had a hundred thousand or so dollars in credit card debt that I was foolish enough to run up for my business. So, I also paid off about a hundred thousand dollars in credit card debt with what I’ve earned.
I’ve paid down hundreds of thousands of dollars of debt and still, there are hundreds of thousands of dollars more because the people who lent me the money are making a lot of money in interest.
In fact, the student loan payments are more about the same amount of interest in principle every month.
If you want to refinance your loans, one thing you can do, I’ve got a link to this on Jerrybanfield.com/resources.
I did this with my loans, but my wife’s loans are so much that I need to pay them down more.
I’m paying more of my wife’s loans down now with Steem.
I use SoFi to get my loans refinanced, which helped me get my interest rate down from 6.5% to under 4%, and if you use my link to join SoFi you will get a hundred dollars joining through my link, and SoFi will give me $300 for the referral.
I don’t think anyone has actually used that. If you’d like to be the first person to use that and you want to try and refinance, will you please use my link on Jerrybanfield.com/resources because you will feel good helping me out and getting your interest rate lowered?
Let me make sure the link still works here, and it looks like it landed on the page.
So, that’s how despite making millions of dollars online, probably 1.5 to 2 million in total revenue, I still have debts.
Now, if you subtract expenses, it’s probably about $400,000 in profit in the last three or four years.
Once you get your profit, the government takes their percentage after the profit, which means that the actual take-home earnings for the last three or so years of my business is probably a quarter of a million dollars.
This is incredibly generous and at the same time that’s crazy that I essentially needed a quarter of a million dollars just to get back to a reasonable financial position.
My wife and I still need about $10,000 a month or more in profit from my business just to pay the bills and here are the bills.
We have like $3,000 a month or so on student loan payments, maybe $2,500 now, mine plus hers, and half of it is just for paying interest.
Then, the car payment and I will take credit for that one.
The Udemy income went over like $40,000 a month. I figured, “Hey, now’s a great time to buy a $900 a month car payment. That’s not a big deal on forty thousand a month.”
Just after that Udemy banned me, and then a $900 car payment didn’t seem like such a good idea.
So, a $900 car payment for a RAV4 hybrid, which is wonderful, and hopefully will last ten or twenty years. I have another car, a Toyota that I’ve had for at least ten years, and I’m keeping it until it falls apart.
Then, we have got a mortgage for about $2,000 a month on this wonderful home that we are in.
You can see that just the debt payments are about $5,000 a month, just to basically keep even.
If I make ten thousand a month in profit, the IRS takes twenty or thirty plus percent of that. As much as forty percent of that by the time you get the self-employment tax in.
I am wealthy with all the income earning potential and income coming in, and I have everything you could possibly want in life.
I want for nothing. I am wealthy.
I am grateful and I’m constantly thinking, how do I help you?
How do I pay it forward?
What I’m doing, going forward after paying off all my debt, I’m going to start buying debt from friends, family and from people I know.
It’s like my partners, I’m going to buy out debt, give the absolute lowest interest rate and just loan the money myself.
I want to help other people get out of these situations that it’s taken practically a miracle that you have helped with for me to even get to this winnable of a position.
Fundamentally, I am debt free.
Who I am, an immortal soul, I am debt free.
I don’t owe anything to anyone.
Now, if you look at individual money and individual accounts, sure.
But in the big picture, in the moment of now, I don’t owe anyone anything.
So, I’m grateful for that.
Thank you for watching.
I’m going to continue the live stream, but I’m wrapping the video up here.
Edits from video transcript by Michel Gerard at www.michelgerardonline.com.