Using John Cummuta's Transforming Debt Into Wealth Course, you'll discover (as I did) "saved money" while you are in debt is really an illusion perpetuated by the very institutions you owe money to. Here's a clue: Who does it profit more to keep your money in a bank at less than 1%? You? Or your bank?
Rapid Debt Payoff is catching on in some enlightened financial circles:
sources:
http://journals.aol.com/brujonte/TheFredBlog/entries/357
and on CNN & fortune Magazine:
http://money.cnn.com/magazines/fortune/fortune_archive/2003/06/16/344218/
"Everyone should be aggressively paying off MORTGAGE debt as fast as possible."
- Suze Orman, financial planning self-help guru and author of six best-selling financial self-help books
Suze has always advocated paying off credit cards. Now she includes your mortgage, highlighting the devastating impact of debt on ordinary families.
Pay off all of your debt in 5-7 years using the money you already make. Find out why financial guru and best-selling author, Suze Orman, is advising her millions of followers to "Pay Everything Off as Fast As Possible!"
Free Lesson - Debt Freedom Course
As those who have been following my blog since I began a couple months ago (March 25, 2006), know that I started off hard touting John Cummuta. Since then I have brought in Dave Ramsey, and have tried to merge the teachings of two of the greatest financial teachers I have ever heard. Cummuta makes since when he talks about eleminating debt before building your savings. However, Ramsey also makes since in having that $1000 emergency fund in place first, so that you don't use the credit card at all anymore.
"Today we live in a world with more unknowns than I have ever seen in my life," she says, sitting in the lobby of the CNBC building in Fort Lee, N.J. Orman tends to infuse even one-on-one conversations with oratorical intensity. "Having talked to literally tens of thousands of people, I can say that what is good for America--and not just what is good theoretically, or for some financial wizards, but what is good literally--is not having credit card debt, not leasing a car, and not having mortgage debt. This is not good for a human being. It's just not. All these financial shows spending all their time telling people what to do with their money ..." She waves her arms toward the rest of the CNBC studio. "Well, get out there and talk to people like I do. The truth is, they haven't got any money. Who has money to invest anymore? Invest what?" - Suze Orman
I am glad to see Suze come on board and recomend paying off all your debts including the mortgage. I think it's time that I look up her program again on CNBC and give it a watch to see what she has to say. It's been to long since I have watched her.
"It may be fabulous for you to get a tax write-off. But if something happens to you, ladies and gentlemen...I promise you one thing: Uncle Sam is not going to let you move in with him." - Suze Orman
you can re-post, and i can re-disagree.
ReplyDeletemy bank rate is 4.5%. it's all about rate. indeed, 1% return is not going to justify most debts (except, of course, 0% ones).
you were my inspiration for borrowing $70,000 at 0% and holding it at 4.5%. I've earned $2,000 since you first insisted it's a bad idea. That's a valuable bad idea! Now I'm returning the first of the loans. Still hasn't cost me a cent.
It's all about rate for any mature investor.
I think that paying off the mortgage is an excellent plan if you aren't over 40 yrs. old. At that stage in life it would probably be more advantageous to focus on retirement investments. Especially, when you are like us, (over with $34k in debt)
ReplyDeleteI think even if you are over 40 it would be adventageous to focus on paying off debt, though I'd bow to some retirement savings. If you really put your all into it, you could retire $34K in debt in a few short years and then apply that same tenacity to retirement savings.
ReplyDeleteAnd -- thanks for this post!!! I love Dave Ramsey and have been trying my best to live his plan, though I'm constantly tripping myself up. I haven't encountered John Cummuta before, but I do enjoy catching the Suze Orman show (though she really needs to buy herself some time with a charm consultant).
db
www.debtblitzkrieg.com