If you’re here, then you have a mortgage…
Am I right?
But did you know that the AVERAGE mortgage holders pay 2x as much as their home when they are finished paying off the loan?
Let alone, the Average Americans never get to finish paying off their mortgages or student loans until they are late into their life.
And the number of people who actually get to pay off their house because of the constant pressure to refinance.
Very few people actually understand that by refinancing, you’re starting the clock all over to not only spend MORE time paying off their mortgage, but they are also actually paying MORE in interest thus making the banks more money.
So the Million Dollar Question Becomes:
How Do I Pay OFF My Debt Without Having to Make More Money or Scrimp and Save?
If Whatever you are doing ISN’T WORKING, then you don’t have a strategy.
Simply Making MORE payment is not a strategy. It’s Called Being LAZY by throwing more Money Into the Problem than Being WISE about it.
The Truth Is…You can pay off your loans AND Actually keep your lifestyle the way it is.
…if it’s done the right way.
INTRODUCING… THE “ACCELERATED BANKING” STRATEGY!
(If you prefer watching our 25 min video on this topic, CLICK HERE)
The debt acceleration strategy relies on TWO main things…
1. Using a Line of Credit to be able to take the money, repay it, and then reuse it. It’s kinda like a credit card!
2. The ability to “manipulate” the Average Daily Balance & Average Daily Interest…
Now, you might be saying…
What the heck is “Average Daily Balance & Average Daily Interest”???
Average Daily Interest is an interest that is applied to the balance of the debt for THAT day. Average Daily Interest is calculated by taking the interest rate divided by 365 days TIMES the balance of that day… So if you have a $10,000 line of credit balance at 6% interest, that means you are paying $1.64 of interest for that specific day. If the balance changes the next day, so does the interest amount. Get it?
So what if we can take ALL of our income and cash that we have… Deposit it against your line of credit to bring down the average daily balance but still have the ability to use that money for our life’s expenses??? Wouldn’t that help with lowering your interest amount? Right?
By lowering our average daily balance, we are reducing the interest faster and by reducing the interest amount, our payoff time is drastically shortened. This is why the line of credit triumphs over your traditional mortgage or a loan even if the line of credit has a higher interest rate!
Now, you might be saying… “Is this strategy right for me?” or “What if I have a super unique situation?”
This strategy DOES have its requirements…
1.) You must have a positive cash flow. Meaning, you are making more money than what you spend. If you’re living paycheck-to-paycheck, you can STILL use this strategy but you must move to a positive cash flow situation sooner than later. There are ways to recover lost cash flow pretty quickly without cutting back on expenses.
2.) If you are looking to pay off your mortgage, then you must have a minimum 10% equity. Though you can use this strategy without hardly any equity, it’s optimal to have at least some equity!
3.) If you are looking to pay off anything else (student loans, credit card, auto-loans), we have special tools just for you!
“But… What if my income is inconsistent?”
This strategy is PERFECT for those that have fluctuating incomes as it helps you keep a consistent expense flow without having to cut back on your spending whenever you have a bad month.
Okay… So you need a line of credit?
There are different types of lines of credit:
1.) HELOC (Home Equity Line of Credit)
2.) PLOC (Personal Line of Credit)
3.) BLOC (Business Line of Credit)
4.) Credit Cards (Yup! That’s right!)
You can use any of those tools to implement this strategy! Generally, You can get lines of credit from banks and credit unions.
Banks and Lenders will typically look at a couple of things…
They’ll look at your credit, your debt-to-income ratio, your current mortgage statement, and your overall financial strength. If you don’t have good credit, there ARE banks that look for other factors so don’t give up!
You can typically improve your likelihood for approval by (1) adding a co-signer (2) having a strong understanding of banking (3) and filling out your application with as much information as possible. Banks and credit unions are businesses. Qualifications are often subjective and you can negotiate your way to increasing your approval potential!
Don’t believe me? Download our FREE eBook and Calculator To show you how much time and money you can save with our strategy!
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