Monthly Archives: April 2012
The debt treadmill is next to near impossible to get off unless you have a plan.
Most Canadians have heard the Bank of Canada continue to tell us how much debt we are in, and there is a debt crisis looming. But how can you get out of debt, without knowing what is necessary for you to do?
You can't really rely on the Banks to give you good advice to get out of debt, because they are generally the ones who put you there in the first place. Sure they like to talk about consolidation loans to get rid of debt, but isn't that just one more product they sell? Are you really getting out of debt by using a consolidation loan? The answer is no, not in the long term...
Once you clean up the debt in a nice clean consolidation loan, this free's up money for you to continue to spend, and generally you are rewarded with better credit, and you become more attractive for lenders to start advertising more products to you. Then you get back into debt and now you have a consolidation loan too!
So how do you get out of debt? The answer is simple, first stop spending more than you make, and then second put a debt reduction plan in place. Sounds simple, but most people don't know how to put a plan in place. This is where we can help.
We can help you by analyzing your debts, understanding how much the interest rate is on your individual debts, and how long you currently would have to pay based on your monthly contributions towards clearing your debt. Most people have never even thought about how long they would have to pay on their debt before it was actually cleared off. This is generally a scary number many, many years into the future.
Here is how it works, we need three pieces of information to help.
1. How much is the debt balance on each one of your debts, like mortgage, credit cards, line of credit and box store credit like Sears, Home Depot or FutureShop.
2. What is your Current Interest Rate on each one of those debts? It is likely that they all will have a different interest rate, so we need to know all of the rates.
3. What are you currently paying towards clearing that debt? If you only make the minimum monthly payments on your debt, then you will be surprised how long it will take to pay off the debt.
Once we have analyzed your outstanding debt together, we then use a debt repayment strategy called the "Debt-snoball Method". This is a different debt reduction strategy than what you have been told in the past, but it works far better than any other debt reduction strategy we have seen so far. It is not based upon the old adage of paying your highest interest rate debt first, and this is why it is unique.
The Debt-snoball method does not require you to pay any more for your debt than you do today, but when structured properly will allow you to get out of debt years sooner, and supercharge your retirement portfolio.
How would you like to get out of debt years sooner than you ever could? How would you like to be mortgage free 30% faster than simply making over payments, or bi-weekly payments on your mortgage? All these things can be achieved by using the Debt-snoball method.
Once we know your particular situation, we use a very special software program to put a Debt-snoball plan in place. Once your debts are entered into the system, we will give you a written plan on how to tackle the debt in a logical and sensible way. You will be amazed on how simple it is to achieve and you will be encouraged throughout the entire process, because you will see your debts fall off one by one, until the last thing you are making power payments on will be your mortgage. Imagine being debt free and retirement supercharging 30% faster than the traditional repayment method your lender propose to you. There are no tricks, only Math...
You need to call our office or send an email and give us your particulars, and we will then provide you with a free no-obligation illustration of how it can work for you, in your own particular situation. It is our business and it is our pleasure, take just a few moments of your time, and start the path towards debt freedom, without a consolidation loan...