Debt Reduction Center

You do not have to read too far into the Abundant Wealth Training Program to realize we believe debt is bad. In fact, debt has become the largest problem families face today. To make things worse, the lending institutions are now pushing interest only mortgages, loans, and credit cards. Intuit, the worlds #1 maker of personal finance software, wants you to take out an interest only home mortgage. Can you imagine that? NEVER EVER paying off your house? Can you imagine making a house payment for 30, 40, 50 or more years and ending up with the same balance as when you started? Most credit cards now have a minimum payment that barely covers the interest, and most of us are paying only the minimum payment.

Why do you think the banks and mortgage companies are so eager to lend us money? Because it MAKES THEM RICH while it keeps us working from paycheck to paycheck. We are literally witnessing wealth being transformed from the middle class to the ultra rich. The hard earned money of the middle class is being shifted to the upper class through $350 car payments, high interest credit cards, and mortgages that never get paid off. We are just now beginning to see the damage this is doing to society, and it is getting worse. The middle class needs to get out of debt, and it needs to happen NOW!

The Abundant Wealth Debt Reduction Center was created for one simple, big, very important reason. TO GET YOU OUT OF DEBT AND TO KEEP YOU OUT OF DEBT. Eliminating all of your debt is the best and first investment you should make in yourself and your family. This comes before a huge savings account and before IRA's and Mutual Funds and Stocks and Bonds. Eliminating all debt is by far the highest, best rate of return you can get on your money. Here is something very important you need to realize: If you are in debt, you can not build wealth. Permanently eliminating all debt is the first, the hardest, the most important, and the most lasting step you can take towards building wealth. If you can get past this step, you will be able to build wealth far beyond your wildest dreams.

Debt - The Most Powerful Force Known to Man!

When asked what was the most powerful thing he had ever witnessed, Albert Einstein responded simply, “compound interest.”

Here are two scenarios which illustrate the hallmark of his genius:

Debt Example #1 - A $2,000 sofa financed at 19.8% interest with minimum monthly payments will take 31 years and 2 months to pay off and you will pay more than $10,000. The interest alone robs you of $8,202 that you sweat for decades to earn. In fact, you will have to earn about $12,000 gross to net $8,202 for the interest just so you can have your $2,000 sofa. What could possibly be worth paying 5 times its value?

But it gets worse. If you were to put that same $8,202 of monthly payments into just a 10% mutual fund over the same 31 years, it would yield $45,540 in personal wealth. And you are giving it all up just so you can get that sofa a little sooner.

Debt Example #2 - Look at a second example. Let's say you regularly buy a new car and pay $300 per month. If you do that for just 1/2 of your working life, or twenty years, you will be giving up money which if invested at 10%, would build to $227,810.65. That amount would generate $1,936.39 per month for the rest of your life.

Let's be very clear about this. You are giving up nearly $2,000 a month income for life so that you can spend $300 per month on payments now! It just doesn't make any sense except to the finance company --- to them it makes terrific sense! Who do you suppose gets that lost income?

It's time to get out of debt and stay out of debt. Here are the steps you need to take to make this happen:

Step 1 - Realize You Are Blessed - Understand you don't need all this new expensive stuff (not yet). Focus on the blessings you have. Focus on the future and where you are going. Review Courses 1 and 2 in the Abundant Wealth Training Program.

Step 2 - Understand Credit and Debt - Knowing exactly how much damage debt is doing to your finances should be enough motivation to get you debt free. Review Courses 3 and 4 in the Abundant Wealth Training Program.

Step 3 - Stop Accumulating Debt - DO NOT BORROW ANY MORE MONEY FOR ANYTHING EVER AGAIN. It is simple to say but very difficult to do. If you are going to ever be debt free, you must stop borrowing money, you must stop acquiring new debt. Review Courses 3 and 4 in the Abundant Wealth Training Program.

Step 4 - Optimize Your Spending Habits - Try to free up 10% or more of your monthly income by making minor adjustments to your spending habbits. use this extra money to pay off debt using the debt snowball plan. Review Course 5 in the Abundant Wealth Training Program.

Step 5 - Implement the Debt Snowball Plan - Pay off your smallest debts first, then apply all that money to the next one. Review Courses 4 in the Abundant Wealth Training Program.

Step 6 - Take Steps to Reduce Interest Payments - High interest loans can be a huge burden on your finances. Once you have completed the steps in the Credit Repair Center you can negotiate lower interest rates on the loans you currently have. Keep in mind when you do this you should apply the money you save to your debt snowball plan. Also, do not borrow MORE money, just enough to pay off the high interest loans.

Step 7 - Take Steps to Eliminate Bank Fees - If you were to figure in the $35 over the limit or late payment fee's into your interest rate it would absolutely skyrocket. Some people are paying 30% or more in interest by not making their payments on time or maintaining a balance that is too high. Work hard to get the balances below the maximum and avoid the over the limit fee. Also, pay your bills early and avoid late payment fees or higher 'penalty' interest rates.

Stay Focused on Debt Elimination - Getting out of debt is without a doubt the most difficult step in the wealth building process. Unfortunately it is also the most important and one of the first steps you must take. Eliminating debt is not something that is easy to do, but there is absolutely nothing more powerful to the wealth building process. It is also an awesome, free feeling to be debt free.

Think of the debt elimination process as a hike up a difficult path to the top of a mountain. At the top of the mountain is a Jeep you can drive anywhere you want to go. Once you have made it to the top, the journey is only half over... But most of the work has already been done.