Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Going Into Debt to Grow 🙃

22 Feb 2025 · 0 min

Watch on YouTube

0:27

A short conversational excerpt from the YouTube video "Going Into Debt to Grow 🙃" (creator: Mike Andes) about high‑interest business loans and debt management. Speakers discuss an interest rate of roughly 40%, a $300-per-day loan cost, and ongoing debt expenses of about $35,000 per month; Mike Andes frames the 40% rate as "insane" and illustrates that $10,000 at 40% would cost $4,000 in interest in one year. The exchange also contrasts differing business philosophies about taking on debt and reducing loan balances to a few thousand dollars to improve cashflow and sleep.

Questions this video answers

40%

You'd spend $4,000 on interest in one year

$300 per day

$35,000 a month

$60,000–$70,000 a month

So I probably wouldn't have bought that truck had I known.
That's the $300 per day?
Yeah.
Like 17, 18 interest, something like that.
No, it's a little more like 40.
40%. That's insane. That is. That means if you took $10,000 of debt that in one year you'd spend $4,000 on interest without paying any of it off.
Right now if our expense of just debt is $35,000 a month and $300 a day is like a very, very high interest loan, I'm trying to get rid of that as fast as possible.
Even if that means.
I only do 60 or 70,000amonth. Now I'm like I can get my loans down to five grand or six grand. And I think what you said earlier is right and like we had two different philosophies on the business. Right? I can never take out debt like you have. It would just kill me. I'm going to be able to sleep.