My conventional bank offers a lower rate
What happens if you can get a loan at a conventional bank for a lower interest rate than your policy loan is offering you? In certain instances, this may make sense. But before you decide what’s right for you, remind yourself of a few key things.
The main thing you want to consider:
Who is in control of the bank’s loan?
If the conventional bank lends you money, they are in control of that loan. You owe them. It doesn’t matter what the interest rate is. If the payment is due to the bank, you owe them at the time they say the payment is due. And if you run into hard times, as many of us have in the past and potentially will in the future, the bank does not care what may be wrong in your life. They simply want their money when it’s due and will penalize you if they do not get it.
Now, if you own that loan and you fall on hard times and cannot pay yourself back, you will not foreclose on yourself. You will not repossess your own car, and you will not report your missed payment to the credit bureaus. There is nothing wrong with taking a loan from a conventional bank as long as you’re disciplined with your money. You know whether or not you’re disciplined enough with your money to do that.
The late Nelson Nash taught that conventional banks should be eliminated completely from your financial plan. But you have to take into account the time he grew up in. At that time, interest rates were upwards of 18%! Right now, we are in a low interest rate environment so it may make sense for you to borrow money from your conventional bank versus your banking policy.
I’m not saying you shouldn’t borrow from your banking policy.
But you may want to consider doing both. This way, your dollars in your policy will be freed up so you can take that money and use it for some other things that may increase your income or cash flow in some way. Thus earning you more money and securing your ability to pay back that loan and create more of that legacy we always talk about.
Remember, it’s all about the control factor and who has control over you and your money. The Infinite Banking Concept puts you in control because that’s the best place to be.
When you’re ready to get started on creating your financial legacy or if you have more questions, most questions can be answered by watching this video. Start there and then schedule a consult with my team when you’re ready to begin.
