Tips for faster debt payoff with your policy
Taking control of your finances (especially with debt payoff) starts with giving your money a plan, or a budget, rather than wondering what happened to all of it. When many of our members come to us they’ve already racked up consumer debt, sometimes tens or hundreds of thousands of dollars. We’ve got to curb spending if we want to get ahead, regardless of how much you actually make. A budget is a simple plan to tell your money where it’s going, before it leaves. Many people have “bad debt” because they buy things they don’t have cash reserves for. So, if you’re using credit cards for everyday purchases, and you never have cash to cover emergencies or other expenses that pop up, here are some tips for you:
When paying off debt using your banking system, you’re building a major asset while you take the control back. We teach to borrow against your policy, pay off debts from the smallest balance to the largest balance, and recapture those dollars into your segregated bank account to repay your policy.
We need some quick wins to know the plan works and to get some momentum, so we’re going to pay off the smallest dollar amount debts first. If you’re wondering why we don’t go for the highest interest rate debts first, here’s our answer. Debt payoff isn’t always about math. It’s also about human nature. So let’s combat the same human nature that put 90% of us in the hole anyway.
Once we pay balances with borrowed cash value, we’re going to roll over the minimum balances we have been used to paying into a segregated bank account at your conventional bank. Then, we will systematically put that money back into your banking system as loan repayments via transfers to the insurance company.
By doing these simple steps, we’ve managed to pay ourselves first by stocking up on cash in our vault known as our banking system. And we’ve also paid ourselves with interest by putting money back into our segregated bank accounts, and eventually back to repay our policy loans.
Your tools team will walk you through this step by step on the phone. And the resources they provide will illustrate all of the steps as well. Over time, this method–paying off debt, using income to replenish the coffers, and knocking off the next largest bill–is the strongest and fastest system to build wealth if you’re starting in the red.
If you’re thinking your next best move is to pay off debt before beginning your own banking system, you’re probably forgetting that you can save and spend money at the same time. Or in your case, save and pay off debt at the same time.