More and more people are getting
swallowed up by debt. I'm sure you've
read and heard many of the statistics
and stories in the news. One of the keys
to financial independence is to get rid
of your bad debt and acquire good debt.
Bad debt is debt that makes you poor,
such as credit card debt, car loans, etc
- this is consumer debt. Good debt is
debt you acquire that actually works for
you. The best example of good debt is a
mortgage loan on a rental property that
throws off positive cash flow every
month. Good
debt is money that you
borrow to purchase assets that put money
in your pocket.
5 Steps to Eliminate Your Bad Debt
and Acquire More Good Debt
Step 1 - Stop accumulating bad
debt. Whatever you purchase via credit
cards must be paid off in full at the
end of each month. No exceptions
Step 2 - Make a list of all your
consumer (bad) debts. This includes each
credit card, car loans, personal loans,
overdraft accounts and any other bad
debts you have acquired
Step 3 - Refinance your mortgage
to consolidate your high interest debts.
Chances are you have built up enough
equity in your home to pay off high
interest credit cards and consumer
loans. Your mortgage advisor can help
you determine how much equity is
available and how much you can save by
increasing your mortgage balance to pay
off bad debts at lower interest rates
Step 4 - Explore the option of
using additional equity in your home to
increase cash flow.
After you consolidate your bad debts you
may still have equity left over to
invest in a secure cash flow producing
asset.
Step 5 - Pay yourself first. Put
aside a set percentage from each
paycheck or each payment you receive
from other sources. Deposit that money
into an investment savings account. Once
your money goes into the account, NEVER
take it out, until you are ready to
invest it. Now- instead of just paying
creditors – you are paying yourself for
only one type of purchase: assets that
give you positive cash flow each month.
By adopting this as a consistent habit
you will be out of the Rat Race faster
than you ever dreamed!.
To apply for a debt consolidation
loan you will have to fill out a short
application form. You will then receive
a FREE quote from well established,
nationally recognized lenders. You do
not need to decide now whether the debt
consolidation loan is for you.
Just apply and compare the repayments to
your current situation. There is no
obligation on your part. If you decide
that it is not for you, you simply do
not have to accept the offer. You have
nothing to lose and everything to gain.
20 Second Application
