Originally Posted by salpro22
I would like to know how you help people free up money?
Do you tell them to buy a honda instead of the mercedes or is it something else?
In Denver there is an outfit that chrges 1450 for debt-reduction coaching. They are enrolling ~100 people a week.
One approach they take:
Get one credit card with no balance.
Get another line of credit - heloc, for ex.
Use cc to buy all gas, groceries, etc. You will pay this off in full every month. By using a cc for purchases, you create a 30-45 day float.
Take your smallest debt and pay it off with loc.
Other than mortgage, and expenses you cannot pay with cc, you will deposit all income into the loc as it comes in.
So first month you will use the money you would have spent on gas, groceries, etc, to pay down debt.
Month two you now have smaller debt payments due, so you pay the cc and still have extra to continue paying down debt.
As you pay off different debt, you will move the next one to the loc., take the extra money and apply to the remaining debt.
Unfortunately, they believe debt is bad and focus on how much compound interest you are paying above all else.
They wanted me to quick pay my student loans. Now my interest rate is less than 3%, so I will take my time paying it off. The longer I take to pay, inflation will eat away at the cost of the loan.
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