Strategies To Pay Off Your Debt!

Introduction:

The more money a person earns, the more they typically spend. Once a person decides to get their finances under control, there often isn’t enough left over to make a significant impact on their debt. You need to arm yourself with the right strategies to get out of debt.

Where To Find Money To Pay Off Your Debts:

One of a person’s biggest expenses is financial loss—in other words, money they are entitled to but are unaware of.

I have a client who helps his clients find hidden money they did not know existed.

For one of his clients, an older man, he found an additional $10,000 in forgotten bank accounts, investments, insurance policies, and inheritances.

For another family, he helped them find a few million dollars in an inheritance they were unaware they were entitled to.

I understand these are some outlandish examples.

Use Banking Laws Against The Banks:

There are a series of banking laws that the bank use against us to charge us high interest rates, higher fees and other expenses however, everyday these bank break these same laws.

We use these same laws against the bank charging them penalty fees and thus eliminating as much as 50% fo your debt.

Financial Tools To Pay Off Your Debt:

There are financial tools that you can use that increase in value that could be used to pay off your debt.

Life insurance is one of these financial tools. The most common life insurance policy marketed is one that pays your family upon your death. However, there are other types of life insurance tools that increase in value over time and can enhance your quality of life.

These tools can help you pay off your debt, pay off your home, and retire early. These types of tools are not just life insurance for when you die but policies that can provide you with a better quality of life.

How These Financial Tools Work:

This type of life insurance is an investment tool where the cash value of your policy grows over time because the insurance company uses your policy to invest in an index fund. Instead of buying and selling individual stocks like Amazon, Disney, or Tesla, you invest in a fund.

A fund like the S&P 500 is made up of hundreds of individual stocks. If a stock underperforms, it can be removed from the fund.

Warren Buffett, the world’s most successful investor, suggests investing in an index fund and staying invested over a long period of time.

It does not matter what helped certain people become successful, but what will give a person the best odds of success. Why not invest in an index fund that has been shown to succeed over time?

The true beauty of investing in an index fund through a life insurance policy is that you get to participate in the upside without the downside risk.

During strong economies, you benefit from a growing economy; however, there is a cap. This is because when the market crashes, you do not lose money. You do not get the top of the market returns because the life insurance companies need this to cover any losses they experience in a down market.

1. Build up cash value
With consistent payments over time, policyholders can accumulate cash value in their Index Universal Life insurance policy.

2. Borrow against the cash value
Once the cash value exceeds the insurer’s minimum requirement, policyholders can typically take out a loan. The maximum loan amount is based on the cash value.

3. Use the loan
The loan can be used for various reasons, including paying off debt.

4. Repay the loan
Policyholders can choose to repay the loan in full or just the interest, which will accrue over time.

Conclusion:

People love the idea of using banking laws against the banks to eliminate their debt and using the cash value of a life insurance policy to pay off their debt. However, going from idea to action is too much to ask of many people because they may have so many questions.

So we created additional resources for you.