Credit Card Debt.....

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Okay, so the bankruptcy thread got me to 'think' which is dangerous.

How many DO plan on charging a christmas/hanukah/whatever for the holidays?

NOT ME. I do have debt, I was DUMB....paid it off, got back in...never ending cycle. Sick of it....too compulsive.

buy me, give me, get me!!!! i want, i need, i gotta have?

NOT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

-- sumer (shh@aol.con), December 08, 2000

Answers

How to get completely out of debt, “including your mortgage” in less than five years, without having to make any extra money!

This is a “NO COST” chain letter to help Americans get out of debt. Please mail or E-mail to al your friends, neighbors and relatives.

YOUR BANKER DOES NOT WANT YOU TO READ THIS LETTER!

If you are sick and tired of being deep in debt, this information can be life changing! If you have married children, they need to read this, because they are deep in debt too! All Americans get into debt as soon as they graduate from High school when they purchase their first car. Since they live with their parents and basically have no living expenses, quite often they drive a fancier car than their parents. Then as time goes on, they purchase more things on time, and before you know it they are deep in debt, and then they get married and buy a home and then they are even deeper in debt. And they have no savings account!

Presently a good basic beginner home costs around $150,000. When you borrow that amount, in 30 years you pay back to the bank over $450,000. So you pay $300,000 in interest, if you pay for 30 years. During a lifetime of buying everything on time, Visa Cards, cars, furniture, clothing, vacations, carpeting, appliances, piano, sprinkling system, boat, motorcycles, loans for College education for your children, loans to pay for weddings, funerals, etc. etc. etc, you can add another $150,000 in interest. That’s almost a half million dollars paid in interest during your lifetime! That’s unbelievable. These two pages give you a guideline how to avoid this huge waste of your money! Following this plan can make you rich!

Can you figure how many years you have to work for a half million dollars? If you make $30,000 per year, that is 16 years of straight work for the bank! That is one third of your life’s income! Doesn’t that blow your mind? You must put a stop to living like that, otherwise you will retire totally broke, working all your life for the Banks! Can you see now how ridiculous it is to get into debt in the first place? Can you see now that by being in debt all your life, you make the Banks rich, and this strategy will keep you poor for the rest of your life? Would it not be much better to try and cut that half million in interest to only $100,000 or less during your lifetime? Read on, it can be done!

I understand there are some things you must pay on time, like a home. But to pay for it for 30 years will keep you poor the rest of your life! But 99% of Americans do that! Americans have heard about plans to pay off a home faster by paying extra principal, but they are so deep in debt, they never get around to setting up a plan to pay off their home sooner. Does that sound familiar? The things that matter most like Personal Finance is not being taught in the High schools. Children grow up seeing their parents buy everything on time, so they just copy them and do the same thing! Then as they grow up, their children also do the same thing! This letter will teach you a different plan.

There is another and better way to live your life and that is what this information is all about, so let’s get into the nitty gritty right now, and let me show you a new way of life! You have to have a plan and then stick to that plan. I will teach you a System, that will get you totally out of debt in about five years or less, including your Mortgage.

First things first. You have to take a serious look at your payments and bills situation and see where you can cut corners immediately. Most Americans buy new cars every few years. This is extremely bad financial strategy, and will keep you poor. That must stop if you want to become financially independent. If you are driving fairly new cars, you must sell them and trade down. You can buy a very nice car about 3 to 5 years old for three to five thousand dollars. Always buy from a private party. Car Dealers are ripoffs. In the nineteen sixty’s and seventy’s a car with sixty thousand miles was considered junk. Now cars last much longer. Find a car with about sixty thousand miles on it.

Then look at other things that are luxuries which you really don’t need and hardly ever use. Just get rid of them and sell them. There, now that is a start to financial freedom. But you have a long way to go. Now sit down with your spouse at your kitchen table and go through your monthly bills and write them all down. Do not include utilities like electricity and water, etc. Those you cannot do anything about.

Now re-arrange your bills with the smallest bill with the lowest payment on top and the largest bill on the bottom, which will be your home Mortgage. I will basically show you our debt situation and how we paid off everything in less that five years, so you’ll understand how this System works.

#1 Sears. $200 balance.............$50 per month. #2 Piano. $500 balance............ $100 per month. #3 Visa #1 $700 balance.............$100 per month. #4 Visa #2 $1350 balance............$150 per month. #5 Car #1. $1800 balance............$200 per month. #6 Car #2 $2400 Balance............$300 Per month. . #7 Loan #1 $4400 balance............$400 per month.

#8 Loan #2 $6000 balance............$500 per month.

#9 Mortgage $83,700 balance..........$700 per month.

Total debt $101,050. Total payments $2500 per month.

These were basically our bills and Mortgage debt. We followed our plan below and got totally out of debt in less than five years. Let me tell you, life is wonderful now. This is the life that awaits you if you follow our plan. This is what you do. This is your plan of attack. You MUST do this, or you will be in debt for the rest of your life! Pay the bankers all your life and you will eventually retire poor! Try to live more frugal, so you will have some extra money left over at the end of the month. Let’s assume you can scrape together $200 extra per month that you usually would just squander on junk.

THIS IS THE PLAN! You take that $200 and immediately pay off Sears.

Now you have $200 plus the $50 Sears payment ($250) to attack the piano bill.

You pay the piano off in two months.

Now you have $350 per month to attack visa # 1 You pay that off in two months.

Now you have $450 extra to pay off Visa #2. You pay that off in three months.

Now you have $600 extra to pay off Car #1. You pay that off in three months.

Now you have $800 extra to pay off Car #2. You pay that off in three months.

Now you have $1100 extra to pay off Loan #1. You pay that off in four months.

Now you have $1500 extra to pay off Loan #2. You pay that off in four months.

Now you will be in a position to almost Quadruple your house payments!

Now you have $2000 extra per month plus the $700 per month house payment which is $2700 per month to attack your Mortgage balance. You can now pay $32,400 per year on your Mortgage! This is what we did! However, you will have to consider the amount of interest, but that amount per month will dwindle down very fast as you continue attacking your mortgage balance.

Your Banker does not want you to do this plan!

Simply add up all the months and you can see that with our plan, you would wipe out a $100,000 debt in less than 5 years! Off course, if your Mortgage balance is larger, it could take a little more time. You will have a set back once in a while, like if you need a new washing machine, etc. Simply pay cash and continue your attack. Follow this System and you will save several hundred thousand dollars in your lifetime!

Please copy and mail or E-mail to at least ten friends OR MORE!

Help America get out of debt!!!



-- Freddie the Freeloader (freddiethefreeloader@aol.com), December 08, 2000.


That's somewhat flawed. You would have to assume the "average" person could cut corners to save $200 a month every month for 5 years, and never charge anything or incur any further debt during that time.

The "average" people I know *might* be able to scrap an extra $200 together by skimping for a month or two (and it would be hard on them)...but not for years, without using their cards. Things always pop up, things you're not expecting, like doctor bills and medicines, car repairs and maintenance (especially if your advocating used cars).

Plus, prices go up on utilities, gasoline, and taxes,..including property tax. Within a few years, you might need that extra $200 just to stay above the rising costs of daily life.

-- kritter (kritter@adelphia.net), December 08, 2000.


What this system does not address is the need for an emergency fund(approx. 3 mo's of expenses but starting with $500-$1000).This plan is a basic debt snowball,it does work but you have to want to do it and live by the budget you set up for your self.

-- capnfun (capnfun1@excite.com), December 08, 2000.

Kritter and the Captain bring out good points. Many people will not see 5 years of steady income growth, thus placing them in a negative race with inflation. Some will have ‘interrupted’ income cash flow that would wreck havoc on such a precariously structured debt reduction program. Severely restricting the use of credit cards is the only way for most people to keep their heads above water. It all sounds so easy……

-- Barry (bchbear863@cs.com), December 08, 2000.

I agree with the Cap'n.

We have three 90 day CDs that total about a months worth of salary for the both of us. We've set them up so that they rotate with one maturing each month. While we're working and have income, we simply roll the CDs over. We have three months' worth of expenses gathering a little better interest than they would in a savings account without the temptation to spend it.

-- Tarzan the Ape Man (tarzan@swingingthroughthejunglewithouta.net), December 08, 2000.



When you pay down your most interest % balance the fastest way possible, it will mean more money in your pocket to paydown the next credit payment. Once your are out of debt (CREDIT CARD, or HIGH INTEREST RATE payment from CU, etc.), then concentrate on accumulating CASH -- enough to invest in a CD or money-market. I recommend remaining liquid for the next 1-2 years while accumulating as much cash as you can. stashed away in a "government FDIC," institution.

Take a look at the stock market. Its uncertainty for the average American leaves little or no confidence for one to invest in. If the economy takes a severe dive (as some economists are predicting), you are far better off having some cash reserves to cover your living expenses if you suddenly find yourself unemployed.

Even if things turn for the better, pay off debts as quickly as possible and let your money work for you instead of for the finance companies.

-- Mrs. Cleaver (Mrs. Cleaver@LITBBBB.vcom), December 08, 2000.


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