Everything You Know About Paying Your Bills is Wrong!

Stemming largely from a complete lack of knowledge and education on finance, today’s society is not only in more debt than ever, but they are continuing the explosive trend of charging everything. Our current educational system does little to educate the American people on how to properly manage finances and credit. It is because of this that most individuals’ only knowledge of how to use and manage credit either is trial and error or learned from their parents. If your parents weren’t good at managing money, chances are you won’t be either. nn It is because of this that the public is in enormous debt that is only continuing to grow. The big problem is that the public doesn’t know how to manage their debt once they get in it. Of course the easy solution is to just never get in debt or use credit, but that serves to help those currently in debt very little. Using credit techniques that I helped develop for a large financial institution, I learned the problem with the way we pay our debts back today. Over 99% of the current population believes the way to pay their bills back and get out of debt is to just pay a little more on all their bills each month.nn Not only is this the wrong way, but it will only serve to keep the average family in debt for approximately 34 years. But there is a right way. Paying a little on each of your bills is the wrong way. I developed a 4 Step Process that will have over 97% of the population completely out of debt, including their mortgage, in 3-5 years, without increasing their income or forcing them to live in poverty. The first 2 steps are obvious, but very needed to make it a success, and I will share them below. nn To start with, you have to stop using your credit cards. You can never get out of debt if you continue to get in debt. You have to call up all your credit card companies and close out your accounts before you do anything. This will prevent you from continuing to charge those balances up. We recommend you close out all your credit cards except one. Keep one credit card for safety, but place it in a plastic bag and put it in a coffee can. Fill the coffee can with water and put it in your freezer. This gives you the safety of having that to fall back on, but eliminates the ability for you to easily charge things on it. This may shock you as well, but you need to stop putting money in savings and stop any retirement account deductions you may be doing. The only exception to this is some sort of employer sponsored retirement where your employer matches a certain percentage of your money. The reason is simply. Why would you put money into an account earning at most 3-10%, when you your debt is costing you as much as 20-30%. It doesn’t make sense, so stop it. The reason an employer sponsored account is ok is that with your employer matching your funds you are earning an immediate 100% interest on your money, which is untouchable by investment standards. This is the only saving you should be doing until you get out of debt.nn The next step is to reduce your current payments on everything you owe. There are several great websites out there where you can refinance practically everything. We recommend you look into refinancing your house, your cars, your student loans and consolidating your credit cards into as few as possible with the lowest interest rate you can get. This alone can save you as much as $500-$700 a month, while saving you thousands if not hundreds of thousands in the long run. We have setup the best of the best resources for refinancing everything on our website at www.Debt-Free-in-Three.com/Resources.html