The views expressed herein are those of the writer and do not represent the opinions or editorial position of I-Witness News. Opinion pieces can be submitted to [email protected]
Debt=Death is a formula created by people without vision. There is a blind spot when someone is digging their own grave and think that they are improving their life. This happens when people take out credit cards and use them to the maximum limit, automobile payment, furniture and appliances on credit and a mortgage payment while borrowing from friends to support their lifestyles.
There is the appearance that such people are doing well, but that is the veil that covers the dead man’s face. Beneath the veil is a lot of worries, lack of sleep, a feeling of hopelessness, all of which contribute to sickness and disease and eventually death. I do not intend to pile onto a terrible situation but simply to acknowledge it so we can deal with it.
I will discuss a proven method to eliminate all debt and turn it into positive wealth. It is true that any country that accumulate great debt (death) will have their citizens in the same hopeless condition. Our current Government has amassed a gigantic debt that will burden all of us forever. Even if you change parties and NDP wins, the debt remains the same. Ralph is a good beggar but Eustace does not have that personality. If we are unable to manage the debt , then the undertakers — namely the IMF and the World Bank — are ready with shovel in hands to bury us. Just ask Grenada, they are on life support. So you got yourself into the mess through carelessness and greed and it will take discipline and some luck to get you out. If you have a Government job and your party lose, then heaven help you.
Let’s say you have a mortgage of $100,000 at 3% fixed for 30 years, your monthly payment is $420. You have a car note for $9,000 and your monthly payment is $125 and minimum payment is $45. Credit card maxed at $3,500, payment $75 and minimum pay is $30. Furniture for $2,000, payment $60 and min pay $25.
You will need a extra $300 to accelerate the payment of your debt. You may say where will I find an Extra $300 when I am up to my neck in debt. You will find it by adjusting your lifestyle. For example, cook your own food and take your lunch to work. Cancel the landline and use only your cell. Bypass the rum shop on your way home. There are many ways.
Mortgage $100,000 payment $420. Car Note $9,000 payment $125 minimum payment $45.
Credit Card $3,500 payment $75 minimum pay $30. Furniture $2,000 payment $60 minimum pay $25.
You will pay off one debt at a time while making the minimum payments on the others. Begin with the smallest and work up to the highest.
So the furniture payment will be $300 acc +$60= $360 x 6 months =$2,160.
In 6 months the furniture is gone.
Credit Card payment $300 + $60 + $75 = $435 x 8 months= $3,480.
Car note payment $300 + $60 + $75 + $125 = $560 x 16 months =$8,960.
So in 2.5 years, you have only the mortgage left.
Mortgage payment $420 + $60 + $75 + $125 = $980. If you pay $980 on your mortgage you will be paid off in 7 years with a savings of $42,000 in interest. Find out if your mortgage has an early pay off penalty. If it does, try to re-negotiate the terms or refinance with another bank. So in 9.5 years you are completely debt free. You say that this sounds like a good plan but Christmas is around the corner and the bank just increased the limit on my credit card by $1,000. I think I will wait until after the holidays to start. That is the kind of thinking that got you into the mess in the first place. As the good man would say “Go and sin no more”. Merry Christmas.
The views expressed herein are those of the writer and do not necessarily represent the opinions or editorial position of iWitness News. Opinion pieces can be submitted to [email protected].