So check this out.
In America the Average cost of a home is $417,701.91. The current rate of interest on a mortgage is 7.62%. The average hourly wage is $29.81 per hour.
When a person sits down to get a home loan, this is roughly what they’ll see.
These are lies.
When I first started in entrepreneurship, I joined a direct sales debt elimination company. For over a year, I worked tirelessly—going door to door, making phone calls, conducting meetings, and even renting hotel space for presentations—without earning a single dollar.
Crazy right?
It felt like I was wasting my time but I later learned that I was picking up vital lessons for achieving the life of freedom I desired.
Here’s a big one.
Those in the business of selling loans often conceal the real cost of purchases through distraction and manipulation, similar to a magician using a handkerchief to divert the audience’s attention while performing a trick.
What’s the trick?
Let me show you the REAL cost of the loan I started this blog post with.
You borrowed $417,701.91 but will pay back OVER A MILLION DOLLARS!
Over $600,000 of what you pay back will be flushed down the toiled in interest to the bank.
Somehow the 7% interest rate you got that sounded so good, has (behind the back) blossomed into 154% interest as a calculation of what you borrowed vs. what you’ll pay back.
You’ll spend over 35,000 hours working to pay back this debt.
Those are hours away from people you love, hours away from doing things that you love.
Modern day slavery.
All enabled with a simple behind the back sleight of hand trick, performed by the bankers and financiers.
Oh and let’s not forget those helpful sales people who look they’re just trying to do us “a favor” by helping us get what we want now for the lowest monthly payment possible.
Next time you consider taking a loan, try to imagine what your reaction would be, if the lender included the TRUE COST Of the loan, on the paperwork, before you signed your name on the dotted line.
Would you be so eager to have the thing now vs. later?
The good news is that there‘s a way out.
You don’t have to play this game any more than is necessary.
Step 1:
is to become viscerally aware of what’s really happening to you and your family thanks to these pernicious loan sharks so you’ll be motivated to escape their chains.
Step 2:
is to create an escape plan.
Decide how much money per month you can afford to dedicate freeing yourself from debt.
The minimum payment won’t cut it.
Can you put in an extra $100 per month?
Great!
Can you do more?
Even better.
Did you know that just $100 exta per month, in the example above, would shave off 85,648.50 in interest from the loan?
The more you can dedicate to this debt elmination plan, the more interest you’ll save and the faster you’ll be out of debt.
Once you’ve decided on a monthly amount, put it all towards the debt that has the lowest balance.
Once that’s gone, take take that amount and begin to apply it to the loan with the next lowest balance.
Keep going and rolling your monthly debt elimination payment into each successive loan until all your debt is gone.
Simple right?
Financial institutions like to make things seem hard, complicated and nearly impossible to understand.
Getting out of debt is simple and you can do it.
As a part of your plan, consider cutting up all credit cards and begin to buy everything with a debit card.
My business partner recently taught me a couple things about this.
1 in 2 americans carry a credit card balance every month.
As long as your debit card has a visa or mastercard logo, it carries the same fraud protection as a credit card.
Learning to pay for things with money you have, will teach you almost more than anything else about the value of money and will immediately stop your credit card balances from increasing.
You now know the Magician’s Trick and are equipped to fight back.
This message was part of today’s Grow Rich Mastermind and you can listen to the whole thing here if you want.
Hope this information has been valuable and thanks so much for stopping by to check it out.
To freedom and beyond,
Paul
PS: Another thing that was SUPER helpful for us on our road to freedom, was learning to increase our income via a home based business so we could pay off our debt even faster.
PPS: Click here to see our latest live free training “A Place Where Dreams Come True.” Not only will you learn some of the BIGGEST lessons I used to escape the rat race and retire in my early 40’s, you’ll also get a raw and honest look at a very unique and lucrative way to build wealth online.