Business
Six simple steps to get out of debt || By Robert Kiyosaki
By the latest numbers from American Banker, household personal debt in the US has hit an all-time high of $13.5 trillion, with the average debt burden standing at $50,210, just below the record Great Recession numbers of $53,000.
Perhaps most concerning is that while mortgage debt still makes up the lion share of this debt, the growth is spurred by spikes in non-mortgage debt. As American Banker reports:
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- Though mortgage loans still make up more than two-thirds of consumer debt, their share of overall household debt has been shrinking steadily for the past decade, and continued to decline in the fourth quarter.
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- With interest rates rising and lending standards tightening a bit, mortgage originations in the quarter fell 11% in the quarter from three months earlier, to $401.5 billion. It was the weakest quarter for originations since the first quarter of 2016, according to the New York Fed’s data.
- Meanwhile, student, auto and credit card debt continue to surge. Student and car loan balances hit record highs again in the fourth quarter and credit card balances, at $870 billion, are once again at pre-financial-crisis levels.
The sad reality is that Americans are taking on more bad debt, and it could be the canary in the coal mine for another recession.
Good debt vs. bad debt
For many people, debt is a four-letter word. The conventional wisdom is to tell people to stay away from it like the plague. Many financial gurus have built their whole empires on decrying debt and helping getting people out of it.
At Rich Dad, we don’t feel this way about debt. Rather we make an important distinction between two types of debt: good debt and bad debt.
Bad debt is debt that is used to purchase liabilities such as cars, vacations, clothes, and even emergency funds for things you simply don’t have the cash to cover. Why is it called bad debt? Because it doesn’t make you richer. It makes you poorer. This is because liabilities take money out of your pocket each month, not put money in them.
Good debt, on the other hand, is debt that puts money in your pocket each month. It makes you richer. It is used to purchase things like investment real estate, grow your business, or take advantage of other investment opportunities. In short, it is used to purchase cash-flowing assets. The cash flow from those assets pay for the cost of the debt.
Unfortunately, most people in America are saddled with bad debt and have no idea how to put good debt to work for them. And the reality is that before you can put good debt to your advantage, you really need to take care of your bad personal debt.
How I climbed out of $1 million in bad personal debt
When my first business failed, I personally had over $1 million in debt that needed to be paid off. Those were hard times for Kim and me. For a short time, we even lived in our car.
Having as much debt as we did, coupled with the emotions of losing my business, it would have been easy to roll over, get a good job, and give up on my dream of building a successful business. I’d be lying if I didn’t say it wasn’t tempting.
Thankfully, we didn’t give into that temptation. Instead we made a plan.
Using all we had learned about money and how it worked, we looked for great opportunities to build our asset column—and eliminate our personal consumer debt—bad debt. By implementing this plan, we were completely debt free within a few years and on our way to financial freedom.
How to get out of debt with these six simple steps
The following are the six simple steps you can use to eliminate your personal debt. If you implement them, they will work.
Step #1 – Lock down your bad debt
If you have credit cards with outstanding balances, discipline yourself to use only one or two credit cards. Any new charges must be paid off in full every month. Do not incur any more long-term debt.
Step #2 – Up the ante
Come up with $150 to $200 extra per month. If you have a good financial education and understand how to have money work for you, this should be relatively easy to do. If you can’t generate an additional $150 to $200 per month, then your chances for financial freedom may only be a pipe dream.
Step #3 – Focus on one
Apply the additional $150 to $200 to your monthly payment on only one of your credit cards. You will now pay the minimum payment plus the extra money on that one credit card.
Pay only the minimum amount due on all other credit cards. Often people try to pay a little extra each month on all their cards, but those cards surprisingly never get paid off.
Step #4 – Keep it rolling
Once the first card is paid off, apply the total amount you were paying each month on that card to your next credit card. You are now paying the minimum amount due on the second card plus the total monthly payment you were paying on your first credit card.
Continue this process with all your credit cards and other consumer-credit debt. With each debt you pay off, apply the full amount you were paying on that debt to the minimum payment of your next debt. As you pay off each debt, the monthly amount you are paying on the next debt will escalate.
Step #5 – Go big
Once all your credit cards and other consumer debt are paid off, continue the procedure with your car and house payments. If you follow this procedure, you will be amazed at the shortened amount of time it takes for you to be completely debt-free. Most people can be debt-free within five-to-seven years.
Step #6 – Build your wealth
Now that you are completely debt-free, take the monthly amount you were paying on your last debt, and put that money toward investments. Build your asset column, even using good debt.
How will you get out of debt?
Contrary to popular belief, debt is not something to be afraid of. Rather, it is a powerful tool to build wealth, when used correctly.
Even when Kim and I were almost $1 million dollars in the hole, we stayed with the preceding six steps and eventually got out of debt. It wasn’t easy, but it was simple. The process required a lot of sacrifice at first, but following the simple six-step outline paved the way for the past two decades of financial freedom.
Now it’s your turn. Get started today on your path to paying off your bad debt and invest in your financial education so that, when ready, you can harness the power of good debt to grow rich.
Sedabuk Oil and Gas Industry Limited has been listed among the 100 Safe Companies to Do Business With in Africa for 2025 by Emerging Elites Magazine International, in recognition of the firm’s integrity-driven operations, strict compliance culture, and employee-focused policies.
The award was presented to the Managing Director of the company, Engr. Adunola Oseni, at a ceremony attended by members of Sedabuk’s management and staff, alongside the editorial board and team of Emerging Elites Magazine in Lagos.
Presenting the award, the Editor-in-Chief of Emerging Elites Magazine International, Princess Olivia Chukwuma, said Sedabuk emerged after a “thorough, transparent and merit-based selection process” designed to identify African businesses that exemplify excellence and ethical conduct.
According to her, the 100 Safe Companies to Do Business With in Africa Award is an international initiative created to recognise indigenous African companies with proven records of integrity, safety, and best business practices, noting that awardees are continuously monitored and recertified every three years if standards are sustained.
The MD of Sedabuk Oil and Gas Industry Limited, Engr. Adunola Oseni, poses with the Certificate of Award shortly after the company was recognised among Africa’s 100 safest companies to do business with.
Chukwuma said Sedabuk was selected for its employee-centric culture, stressing that the company has no record of unpaid salaries since inception, maintains fair wages, and prioritises staff welfare through initiatives such as its “One Nutritional Meal a Day” programme, which she described as “rare and commendable” in Nigeria’s oil and gas sector.
She also cited the firm’s zero-tolerance policy for fraud, recalling a June 2022 incident in which a pump attendant was sanctioned for under-dispensing fuel while affected customers were compensated, an action she said “clearly reflects Sedabuk’s philosophy of integrity in service delivery.”
Other factors that earned the company the award, she said, include its reputation for honouring contracts, absence of contract-related court cases, strict adherence to safety standards, and voluntary compliance with regulatory obligations, taxes, and statutory dues without coercion.
“With these attributes and more, Sedabuk Oil and Gas has become a beacon of hope—a new breed of Nigerian company that is trustworthy, valuable, and safe to do business with,” Chukwuma said, as she inducted the firm into the Hall of Fame of the 100 Businesses Safe to Do Business With in Africa 2025.
MD, Engr.Adunola Oseni and staff of Sedabuk Oil and Gas Industry Limited during the presentation of a Certificate of Award by The Emerging Elites Magazine International, honouring the company’s adherence to safety standards and best business practices.
Responding, the Managing Director, Engr. Adunola Oseni described the recognition as “a validation of our core values and a strong motivation to do more,” adding that the award belonged to the entire workforce of the company.
“We will continue to uphold integrity, safety, and transparency in all our operations, remain committed to staff welfare and regulatory compliance, and set standards that others in the industry can emulate,” the Sedabuk boss said.
Sedabuk Oil and Gas Industry on Tuesday reinforced its reputation as a people-centred organisation as it rewarded outstanding employees with cash prizes totalling over ₦10 million at its 2025 Employee Recognition and Awards ceremony held in Lagos.
The event, which attracted over 300 staff members alongside top management officials from across the company’s divisions and subsidiaries, was organised to celebrate excellence, dedication, and loyalty within the Sedabuk workforce.
Speaking at the ceremony, the Managing Director, Engr. Adunola Oseni, described the occasion as one of the proudest moments in the company’s journey, noting that Sedabuk’s steady growth has been deliberately anchored on staff welfare and well-being. She said the company, from inception, made a firm commitment to put its people first, stressing that no organisation can truly thrive if its workforce is neglected.
Oseni disclosed that Sedabuk has never owed or delayed salaries since it commenced operations, describing prompt payment as a mark of respect and responsibility. She added that the company reviewed and increased salaries twice in 2025, improved wages across the board, and sustained its seven-year-old One-Day-Meal Programme to ensure employees do not work hungry.
The managing director announced cash awards spanning retail operations, station-based roles, marts, laundromats, and group-wide excellence categories, explaining that the initiative was not just about financial rewards but about recognising hard work and reinforcing a culture of appreciation. According to her, a loyal and motivated workforce remains the company’s most valuable asset.
She assured staff that management is entering 2026 with stronger welfare policies, better incentives, and more opportunities, with the aim of positioning Sedabuk as one of the best organisations to work in Nigeria. Oseni further urged employees to raise the bar in the coming year by working harder, smarter, and together.
Several employees emerged winners across key categories, including Pump Attendant of the Year, Station Captain of the Year, Mart and Laundromat Excellence Awards, and Special Recognition honours.
The highlight of the ceremony was the Group Chairman’s Spirit of Excellence Award, where Adediran Segun Aderonke emerged Sedabuk Star of the Year with a ₦2 million prize, while Ibiloye Olayinka won the Most Outstanding Employee of the Year award with ₦1 million.
In his remarks, the Group Head, Human Resources and Administration, Mr. Adeleye Olusanjo, lauded the managing director for her consistent leadership and unwavering commitment to staff welfare, assuring employees that more incentives and improved support structures are already being planned for 2026.
The event was attended by senior executives, including the General Manager, Finance and Strategy, Mr. Aderoju Sola; the Group Head, Operations and Logistics, Mr. Rufus Enioshunwa; and the Group Head, Corporate Audit, Risks and Ethics, Mrs. Tolulope Omotola, among others.
Established in 2018, Sedabuk Oil & Gas Industry Ltd operates over 12 petrol stations across Lagos, Ogun, and Oyo states.
The Securities and Exchange Commission (SEC) has raised a red flag over two cryptocurrency products — Zugacoin and Samzuga GPT — warning the Nigerian public to steer clear of them.
In a strongly worded statement issued on Wednesday, the apex capital market regulator described the digital assets as unauthorised crypto schemes with no legal backing or regulatory approval in Nigeria.
According to the Commission, neither the promoters nor issuers of Zugacoin and Samzuga GPT are registered to operate in any capacity within the Nigerian capital market.
“Preliminary investigations revealed that Zugacoin and Samzuga GPT are meme coins,” the SEC said. “Meme coins generally have no use case, intrinsic value, or tangible projects backing them.”
The regulator added that the only perceived value of such coins often stems from aggressive promotion by their creators or community hype, making them prime candidates for “pump-and-dump” fraud — a deceptive scheme where promoters artificially inflate the price of a coin through misleading information before dumping it at peak value, leaving unsuspecting investors with massive losses.
“Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money,” the SEC warned.
The Commission urged members of the public to avoid engaging in the purchase or promotion of Zugacoin, Samzuga GPT, or any similar crypto assets, noting that anyone who chooses to invest in such schemes does so entirely at their own risk.
To further safeguard investors, the SEC advised the public to always verify the legitimacy of any virtual, crypto, or digital assets and their promoters through its official platforms:
https://home.sec.gov.ng/fintech-and-innovation-hub-finport/registered-fintech-operators/
www.sec.gov.ng/cmos
This warning is the latest in the SEC’s ongoing crackdown on fraudulent digital asset operations targeting unsuspecting Nigerians amid a rise in crypto-related scams.
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