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In this critical discussion with Certified Wealth Manager Revanth Chalamala, we tackle the severe problem of persistent debt and common financial traps. We analyze the situation of an individual earning a monthly salary of 1,00,000 who is struggling under a $10 lakhs debt burden. The Debt Trap Examined: This individual has monthly expenses totaling around 85,000 (covering rent, groceries, school fees, etc.). He is forced to pay $20,000 monthly, which covers only the interest on his debt. Crucially, he is compelled to swipe his credit card for the remaining $5,000 just to meet his interest payment. The Chit Fund Myth: Many people believe joining a chit fund (chitti) is a viable solution to clear debt. However, Revanth explains why this common practice pushes people further into debt. If the friend were to successfully bid on a $10 lakhs chit in the early months, he would only receive $6.5 lakhs to $7 lakhs after a $30% to $35% cut. While he could pay down part of the debt (e.g., $5 lakhs), the new debt from the chit requires a monthly payment starting around $30,000, potentially rising to $35,000 or $40,000. This significantly increases the required monthly outlay (by about $25,000) and forces him back into a cycle of credit card debt. Secrets to Financial Freedom: We discuss the practical strategies needed to clear debt and start investing. • Priorities Zero Debt: Debt must be eliminated while it is still "a bud". A person with debt does not have the right to hold assets or invest. • Asset vs. Debt Growth: Assets (like agricultural land) typically grow slowly, perhaps at 7% to 8% annually. Meanwhile, high-interest debt grows much faster, consuming the entire asset base over time. • Practical Solutions: Selling a small asset, or even half a property, to clear the debt is better than letting the interest accumulate. If accessible, switching high-interest debt to a low-interest gold loan (8% to 9% interest rate) can drastically reduce the monthly burden. • Mental Clarity: Trying to start a business or new high-risk ventures to earn money to clear debt is often unsuccessful because the pressure and commitment required to pay monthly bills lead to mistakes and poor decisions. • The Investment Path: Once the debt is cleared, you must begin investing immediately. Fresh investments in avenues like Mutual Funds, which can yield an average return of 15%, allow for wealth creation, helping the individual recover the money they lost to high-interest payments. Don't let debt swallow your future. Watch now to learn how to break the cycle and start building wealth! #debtfree #financialfreedom #investsmart #budgeting #moneymanagement #personalfinance #budgetingtips #creditcarddebt #moneymistakes #wealthbuilding #financialplanning #socialpostfinance How to Pay Off Debt Faster | Money Mistakes to Avoid | Secrets to Financial Freedom | Revanth -- #Finance #Investing #MoneyTips #SocialPostFinance #Socialpost Welcome to SocialPost Finance – your trusted source for smart financial tips, market insights, and strategies to manage and grow your money. Stay informed, make smarter decisions, and achieve financial freedom. Subscribe for weekly videos on personal finance, investing, budgeting, and economic trends. Follow Us On: Facebook: / socialpostfinance Instagram: / socialpost_finance Contact us for any promotions and Collaborations : Phone: +91 8885554884 Email: [email protected] 🔔 Disclaimer:- The information provided in this video is for educational and informational purposes only. Socialpost Finance is not a SEBI-registered financial advisor. All investment decisions should be made based on your own research or after consulting with a certified financial advisor. The views expressed by guests and experts in this video are their personal opinions and do not constitute financial advice. Market conditions are subject to change, and past performance is not indicative of future results. 📌 Invest wisely and at your own risk.