Learn how to pay off your debt better than the typical answer given by financial “experts”, like Dave Ramsey, who are not looking to improve on their own methods. The secret? IGNORE THE INTEREST RATE and use our Cash Flow Index (CFI) to determine which debt to pay off first!
Although interest rates are a factor, banks and other financial institutions are able to manipulate you to pay off debts that help lessen their risk while increasing yours. For instance, if you put more equity into your home, you are still at risk for being foreclosed on if you can’t make a payment. In fact, they may be MORE willing to foreclose on you if you have more equity in your home.
Ask yourself the following questions:
- How often do banks want your money?
- How much of your money do they want today?
- How long do they want your money for?
- What incentives do they offer you to either have you pay off debts faster or save money with them longer?
Every answer is about them getting your money to be used as fast as possible. Ironically, they teach us to not touch our money until much later! Why do they play by different rules than what they teach us to do? Instead of being suckered into using the strategies banks teach you to GIVE THEM MORE MONEY, DO what is in YOUR best interest! REMEMBER THIS-Pay off debt that gives you the greatest cash flow with the least investment.
You can also get more details with our previous podcast on how to more effectively pay off your debt.
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