Author: Anthony Manganiello
Author of The Debt-FREE Millionaire and creator of www.DebtFreeAcademy.com
In my experience, most people start looking for debt relief when they experience a rise in blood pressure every time they sit down to pay the bills. If you’ve decided to hire a debt-relief company to help you with your debt, this may be the case for you as well.
You call a debt-relief company, find out they can lower your payments, and feel the relief they offer. This relief is oftentimes mistaken as the end of the “I can’t pay my bills” problem. However, instead of the end of a problem, you should be looking at it as a “New Beginning.”
The best way to express what I mean is with a simple question…
“What would your life be like if you had no credit card payments, no car payments, no house payments, no debt payments of any kind?”
Imagine this being a reality for you. Think about how much you pay on all your debt each month. If you have car payments, a house payment, along with those pesky credit cards, that total amount is probably in the thousands.
Your total debt load is – for the most part – calculated based on your income (something called a “debt-to-income” ratio – or DTI – which is calculated by dividing your total monthly debt payments by your total gross monthly income). When understand that a “healthy” DTI considered to be a percentage in the low 30s (30%, 32%, etc.), the monthly amount really adds up. If you’ve had an interruption in that income, that’s when the blood pressure starts to rise.
Imagining being completely debt free means those thousands you’re sending to your creditors each month is now yours to keep. What would be the impact on your quality of life if that were the reality of your financial situation? Quite an improvement… huh?
Well… this doesn’t have to be just some kind of fantasy. You can create this reality if you consider your debt-relief program as a “New Beginning.” To transform this fantasy into reality is actually kind of simple. This is how it would work…
Once you’ve completed your debt-relief program (whichever program it is), you would take the total amount you’re currently paying towards it, and snowball it on top of your next debt. You’re probably paying a few hundred dollars or more each month towards that program, so adding it to another minimum payment for another debt would mean the second debt (probably a car payment) would be paid off MUCH faster.
Once that debt is paid off, you snowball that entire amount (the payments previously going towards your debt-relief program and the debt you just paid off), onto the next debt. You keep that snowball rolling, and gaining mass (by virtue of absorbing the payment from all the paid off debts), until you’ve paid off ALL OF YOUR DEBT!
On average, this can be accomplished in about eight years or less.
This would mean you would own your home, and everything in it… the cars you drive, everything! I call this transforming the “e” into an “n”… transforming “owe” into “own.”
So… once the “relief” of your debt-relief program has settled in, and you can begin to turn your focus from the nasty now-and-now towards the future. Imagine that future being one where YOU are COMPLETELY debt free. And let that new beginning… begin.