Every New Year starts with resolutions, goals, renewed dreams, and thoughts of so many new possibilities. I am here to tell you that many of your biggest financial dreams really are possible; in fact, you don’t have to wait until the beginning of a new year to take action toward achieving them.
Here is what I propose. First, make a plan to get out of debt.
Together, let’s make a concrete plan for 2020 to be the start on your road to becoming debt-free. Whether you just have a mortgage, or like most Americans, you have student loans, credit cards, auto loans, and other types of debts such as personal loans, we can make a plan that’s achievable.
Whatever debt you may have, let’s face it squarely and make a plan to eliminate it. Even if you have felt it was impossible or haven’t had the discipline to follow some of the current debt-free plans out there, this is a new year with new possibilities.
We have software that was designed specifically to get you out of debt. In fact, the software was written by two mortgage brokers looking to help families with their American Dream of home ownership.
Through the years, they found that they kept getting repeat and referral customers, not because their customers were buying more homes but because they kept cashing out equity until for some, the well dried up.
This article is going to discuss what the average debt amounts are for California. Using various resources to try and find the averages was difficult so most of the data is from census data of 2016 as well as home price data for 2019.
Using the debt elimination software, I’ll show you how much interest you’ll save as well as the time frame to pay down the debt. Of course, this is for illustrative purposes using averages to demonstrate what is possible. For your own free debt elimination analysis, you can click here to download the worksheet necessary for me to complete your free analysis.
Let’s start with Jim and Mary. Jim has been working for his company for about 10 years now, and Mary has stayed home raising their kids and volunteering. She has been working part-time to earn some spending money but nothing that they use for their family finances.
Jim’s take-home pay is $3,505 every other week. They have some monthly expenses adding up to about $3,500 a month. They also have the following debts, listed below by debt balance, interest rate, and minimum monthly payments totaling $3,146 a month.
With Jim and Mary’s total monthly take-home income at $7,010 and total monthly outlay (expenses and debt payments) at $6,646, they have a monthly discretionary income of $364. Combined in checking and savings, they have about $35,600 earning a little over 1% interest.
Using our software, I calculate that Jim and Mary will have to pay an additional $136,080.76 in interest in addition to the principal amount of $387,395 which equates to more than 35.11% of what’s owed if they take no action. If we were to calculate out how long just their income paying interest and not other expenses, it would take 1.5 years to just pay interest alone or an additional average of $505.60 per month.
By using our software to eliminate debt, Jim and Mary could save up to $75,037.63 or about $728.52 per month averaged over 8.6 years. That’s a 55.17% savings!!!
Now, besides the money saved, how much time did Jim and Mary save using our software? The answer is 13.8 years. They can be debt-free in 8.6 years down from the original 22.3 years!
Here is where the real power comes in. If we were to suggest to Jim and Mary that they redirect the $3,147 going towards debt right after the 8.6 years and saved it in a 1% interest-bearing account for the remaining 13.8 years they could have $723,861 saved.
Clearly using our debt elimination software is a game-changer. Working with us allows you to not only put a plan in place to eliminate debt, but build your future nest egg at the same time.
Take complete control of what may have seemed uncontrollable in the past.
To get started:
- Download our Client Profile Fact Finder
- Download our Debt Analysis Worksheet
- Contact us at Asset Coach and Tax Strategist