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Glen

This example shows how to wipe out debt and live debt free.

Debt Elimination Example

This is an example based on our Total Debt Elimination Or Reduction Plan

Total Debt Elimination Example:

Creditor Name Minimum
Payment
Interest
Rate
Principal
Balance
Wegotyer Numbr Visa 10.00 21.75 400.00
Mister Card 39.90 19.25 2,100.00
American Distress 66.50 19.75 3,500.00
Vista Cold 104.50 16.5 5,500.00
Platnitude 161.50 14.75 8,500.00
Triple B Automotive Sales 422.73 6.0 13,000.00
Old Dirt Mortgage Co. 1896.20 6.5 300,000.00
       
       
       
       
       
Totals 2,701.33   333,000.00

Though the amounts in this example are a little below the US national average, it should serve our purposes.  In this example, if we made the minimum payment and added no charges to the credit balances, the Automotive Sales debt will be paid off in 3 years, the credit cards in 15 years, and the mortgage in 30 years.

Let's assume this family makes $ 60,000 per year, earns a 3% raise of which they net an increase of $ 1,200 per year, and receives an income tax refund of $ 400 each year.  Let's also assume 100% of the first tax refund was used to pay off their first credit card, Wegotyer Numbr. Using the instructions above, the following results would occur:

Automotive Sales paid in 3 years-same.
All Credit Cards paid off in 4 years, 4 months-More than 10 years ahead of schedule.
Mortgage paid off in 13 years-17 years ahead of schedule.
Savings of over $ 300,000 in interest.

Conclusion:

Well, this has been a productive exercise.  If your debt is close to our example, you can pay off all your consumer debt well within 5 years and pay off your home 9 years later...if you stick to the plan.  The hardest part is getting to that first credit card pay off without adding something to your debt.  I can tell you from personal experience, if you have to charge it, you don't need it.  I can also tell you that this is hard to do.  If it were easy, people wouldn't be paying so much to have someone else do it.  You need help to control spending to this extent and wisdom to help your family understand why they can't have every little thing their eye sees.  I got that help and wisdom from God.  If you want help from God, click on God help me.

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