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HOW TO GET COMPLETELY OUT OF DEBT IN LESS THAN FIVE YEARS, INCLUDING YOUR MORTGAGE, WITHOUT HAVING TO GET A PART TIME JOB OR MAKING ANY EXTRA MONEY!!!

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 a few more things on time, and before you know it they are deep in debt. Then they get married and buy a home.

Presently a good basic beginner home costs around $150,000. When you borrow that amount, in 30 years you pay back to the bank at least $450,000. So $300,000 you pay out in interest, if you pay for 30 years. During a lifetime of buying everything on time, Visa Cards, cars, furniture, carpeting, appliances, piano, sprinkling system, boat, motorcycles, loans for College education for your children, loans to pay for their weddings, etc. etc. etc, you can add another $200,000 in interest. That is a total of a half million dollars paid in interest during a lifetime!!!

Can you figure how many years you have to work for a half million dollars??? Does that not blow your mind? That is what youve been doing all these years! You must put a stop to living like that, otherwise you will retire totally broke! Can you see now how rediculous it is to get into debt in the first place? Can you see now that 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 live your life in such a way, so you could cut that half million in interest into only $100,000 or less during a lifetime?

I understand there are some things you must pay on time, like a home. But to pay for it for 30 years is totally stupid! But almost 100% of Americans do that! And the bankers love their stupidity! Americans just dont know they are stupid. They 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 familliar? The things that matter most like personal financial freedom is not being taught in the High schools. Most things you learn in High school you never use in everyday life. 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 do the same thing!

There is another way to live your life and that is what this information is all about, so lets get into the nitty gritty right now. 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. Then when you are totally out of debt, use that two or three thousand dollars extra per month and invest it wisely every month to create wealth. You could buy rental property.

The first thing we did was buy a small home in a small town for only $21,000 and we paid cash. You can get some real deals in small towns. Now I rent out that home for $650 per month and the rent paid back my original investment in about three years. Now we receive $650 per month for life! And that amount will increase with inflation! That was a very good investment. We now are looking for more deals like that.

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. Bad financial strategy. That must stop if you want to become financially independant. My wife and I both drive ten year old cars.

They are both Ford Probes. Excellent cars and very stylish looking. Quite often people think they are new cars. In fact they both have about 180 thousand miles on them. They are excellent transportation and nothing to be ashamed about. 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 four thousand dollars. Always buy from a private party. In the nineteen sixtys and seventys a car with sixty thousand miles was considered junk. Now cars last much longer. Find a car with about sixty thousand miles on it and you save big bucks!

Then look at other things that are luxuries which you really dont 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 rearrange those 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 make some assumptions and write down on the next page a possible scenario of payments, so youll understand how this this System works.

Sears. $200 balance.............$50 per month. Piano. $500 balance............ $100 per month. Visa #1 $700 balance.............$100 per month. Visa #2 $1350 balance...........$150 per month.

Car #1 $1800 balance...........$200 per month.

Car #2 $2400 balance...........$300 per month.

Loan #1 $4400 balance...........$400 per month.

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

Mortgage $83,700 balance.....$700 per month. Total debt $101,050. Payments $2500 per month.

This is what you do. This is a 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. Lets assume you can scrape together $200 extra per month that you usually would just squander on junk.

You take that $200 and immediately pay off Sears.

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

It took only 22 months to pay off all your bills, except your mortgage. Now it is time to attack your mortgage with all you've got!

Now you have $2000 extra 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!

You will have to consider the amount of interest. However, that amount per month will dwindle down very fast as you continue attacking your mortgage balance. Simply add up all the months and you can see that with this scenario, you would wipe out a $100,000 debt in less than 5 years!

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 a lifetime! This is money that you now can use to invest for your retirement! Good luck, and I know you can do it. May the force be with you!

-- freddie (freddie@thefreeloader.com), January 31, 2000

Answers

Good strategy. Too bad you can't convince everyone. You would put the banks out of business!! Yea, after I got out of college, I bought a car and within two or three years, I was also in debt about $4000 on a credit car. I was just scraping by. I sat down and said, "I don't like this, at all." So I paid off the credit card and the car and starting saving. I haven't been seriously in debt since. I built a house and only borrowed $4000 on a personal loan - no house mortgage. It worked for me!

-- Y2kObserver (Y2kObserver@nowhere.com), February 01, 2000.

MOST of the interest we have all paid does us as much good as putting it in a garbage can,GET OUT OF DEBT.THE MONEY YOU SAVE WILL BE YOUR OWN!!!!!

-- J (jax@borg.com), February 01, 2000.

Thank you for the post freddie,
Good advice for simple living.

-- Possible Impact (posim@hotmail.com), February 01, 2000.

01-31-00 11:46PM CST Thanks Freddie: Very good advice. Will print it off and take a serious look, and see what interest and debt we can trim from our life.

-- suzy (HAYSandCO@aol.com), February 01, 2000.

Uhhh...I have a question....do I have to drive a crummy handling Ford with crappy seats built for fat american asses....or can i drive a BMW or Mercedes???

-- INever (inevercheckmy@onebox.com), February 01, 2000.

One flaw; your reliance on renting out property limits the number of people who can benefit from this strategy. Oh, and if banks stopped raking in those fat interest payments on mortgages, they'd load their mortgage rates through the roof, and again JQP gets screwed.

It's a good strategy at a personal level, but it doesn't scale well. Interesting reading though, thanks.

-- _ (_@_._), February 01, 2000.

Sounds Great:

Throw a few wrenches in the gears:

1. Transmission goes on your SUV 2. Heater wornout in your home 3. Tire blowout on your car 4. Kids just graduated from school, want college 5. Oooops, sump pump blew again 6. Fuel oil just hit 1.90 7. Taxes just went up 8. Kids need new shoes ect.... ect... ect....

Go for a consolidation loan and make double payments

-- cork (corcorab@hotmail.com), February 01, 2000.

Freddie, Many people would be trying to sell this simple advice! Thanks for reminding people that they can get out of debt.

Although we have never carried much personal debt beyond a mortgage, I became very frugal when preparing for Y2K, so that I could prepare as thoroughly as possible without spending much money. There are many frugal living web sites, Just ask any search engine. I prepared for Y2K by stocking my pantry from Aldi's and buying camping supplies from yard sales! The money I didn't spend at the more expensive stores went 'under the mattress'. The extra cash and extra supplies have made me feel richer than ever before, and I think I have made a permanent lifestyle change.(From frugal to more frugal!)

Again, anyone interested in getting out of debt, look for web sites concerning "frugal living". The money you save just by cooking from scratch instead of buying convenience foods is substantial for most families.

-- cmd0903 (cmd0903@dontcall.com), February 01, 2000.

I want to know how you keep a Ford Probe on the road for ten years. I kept a Chevy Vega on the road for nine, but then the back seat and floor came loose and dropped down onto the muffler and subsequently the road. (All the salt on the roads during Michigan winters finally took their toll.) No one was interested in trying to solder the pieces back together for me, so I had to sell the parts.

-- (ladybuckeye_59@yahoo.com), February 01, 2000.

great advice freddie (though i've read it before - i think on exactly this subject was written a few yrs ago).

yes, even though there are unexpected expenses that crop up, the overall game plan is the WAY TO GO. good work.

lou

-- lou (lanny1@ix.netcom.com), February 01, 2000.

Looks workable as long as you remember to not send all your money to the mortgage co...you have to keep some aside for unexpexted expenses.

Also one can increase the payoff by ruthlessly eliminating waste from your budget. The "Tightwad Gazette" series of books is a good place to start. My wife and I managed to reduce our expenditures to the tune of $1500 a year after reading those books, and we've done better since. This also helps to make the bills vanish.

As for real estate investment, I doubt that it's workable for everyone. I know I have no interest in having a second house to upkeep, and definitely don't want to have to fool around with tenants.

-- Bill (billclo@blazenet.net), February 01, 2000.

DELETE-this is spam.

-- futureshock (gray@matter.com), February 01, 2000.

I've been a landlord for 30 years. My parents were landlords in the 30's 40's 50's 60's. Its not for everyone. I've learned alot of tricks on keeping things going. And yes tenants can be fun. If you want to be tough, dirty, happy, mean, gental, kind then go for it. If you consider yourself a christian then try being a landlord it will test your metal and truely make you think about how Christ would expect you to operate. The bible can be quite confusing about being a good stewart on one hand and a kind self sacrificing person on the other. I been down that road many times and I think I could teach a course on it. You havn't lived until you've tested your christian ways on the real world. I thank God everyday for all he as given me. I'm sure any business person understand what I've been saying. justtinkin.com

-- justthinkin com (justthink@buz.com), February 01, 2000.

I make nine dollars an hour and have twenty-six dollars in the bank. I am over $15,000 in debt. I rent a one bedroom apartment. How am I supposed to pay cash for that rural rental property again?

-- Simpleminded (poor@chile.com), February 01, 2000.

I used to make the minimum wage and rented a room in somebody's basement, bathroom down the hall. I actually managed to save money. It's your choice.

-- Amy Leone (leoneamy@aol.com), February 01, 2000.

Fortunately, Amy, by the time I would have saved enough money to pay off my debts (and acrue many more due to a lack of health insurance), I can finish my college degree and quintuple my income. I just think some people have no handle on what might work for everybody.

For instance, I just quit my second job, thinking I would take it easy this semester. Nine days after I quit, one of my molars broke, and my wisdom tooth has to be removed before a crown can be put on. Total cost? Around five hundred dollars, or what I would make in a month and a half at my second job. Having no insurance, it goes on the credit card with the contact lenses, glasses, other dental work, and other health care costs (like birth control).

So it's back to work for me. Damn. And I almost had enough saved up to pay cash for the groceries this week.

-- Simpleminded (poor@chile.com), February 01, 2000.

Great advice Freddie!!!!!!!!

May the force be with YOU!

-- PJC (paulchri@msn.com), February 01, 2000.

There is living...then there is "living beyond your means".

I've been on both sides, and it's much better being debt-free, or close to it. That's where I'm at right now...and even though I may not have the glitziest lifestyle and be the envy of my friends, I have peace of mind :-)p> It's all about priorities and what you want out of life. If you feel that you need material things to impress others, stop and ask yourself "Is it really worth it?". Is it something YOU want, or are you just trying to keep up with the Joneses?

Granted, there are things that are expensive that some or want...my passion is cars. Instead of signing up for a huge loan, I save as much $$$ up front as possible for the downpayment, then take out a small loan. Granted, I don't get the instant gratification, but I'm paying "myself" instead of the bank, and not paying as much interest to boot.

And if you want a Porsche or BMW to impress the shallow people, buy used. You'll save tons on depreciation. I've found that it's not the year, but merely the name that matters...going on over 230,000 miles on mine, and it's an 84. If you don't drive like a leadfoot jerk and do regular maintenance, the car will last.

-- Tim (pixmo@pixelquest.com), February 01, 2000.

Hi simpleminded If you are in school you might try and get some free or low cost dental work at a locate dental university or college. This might help. good luck justthinkin

-- justthinkin com (justthinkin@teeth.com), February 01, 2000.

simpleminded, if you're at a 4-year college, check with the health department or nurse's office. many routine things are done there at very low cost. also, i know at Maryland they had a low-cost health insurance plan; check at your school too. if you're not already, many schools let you spread out tuition payments with no interest; that might let you get a better handle on the other expenses (ie. credit cards, etc.). also, you may want to check around for a local co-op. call your credit card companies to see if they will lower the interest rate for hardship cases (it doesn't hurt to ask). go to consumer credit counseling; they will negotiate with your creditors for lower payments and may be able to freeze any further accrual of interest. look around for another student to share a 2 bedroom apartment with; the split rent should be much cheaper than for a 1 bedroom alone.

-- sarah (sarahlyao@aol.com), February 01, 2000.

Folks: We also got completely out of debt, but our program was a little different. For one thing, we never wanted to mess with rental property either. We bought a fixer upper in St. Louis 15 years ago and we did a lot of work on it. We're not exactly handy, but most of the work was paint and elbow grease. We put off having kids til we were mostly done. We've never had a car payment. Then we had 2 kids and moved to the country. Country real estate is cheaper than in the city and we sold the house at a profit, so were able to buy outright. Most people would have bought a bigger or fancier one and kept the mortgage, but we wanted to be mortgage free. Now I can stay home with the kids, and I have time to shop garage sales where I can find really nice stuff. My husband works 32 hr. a week, and we travel. The funny thing is that his co-workers think we inherited a lot of money. I asked him how they explained away his beat up old car! Yes folks it can be done, and it feels great.

-- soapie (soapie@suds.com), February 01, 2000.