Personal Debt Never Higher and Savings Never Lower

American household financial statistics paint a frightening picture.  As a country, or debt to income ratio has never been higher and the amount of money in savings accounts has never been lower (visualcapitalist.com).  To be blunt, as a country, our personal finances are a train wreck.

Why are we in such a bad financial situation?

The Answer’s in the Mirror

Without coming across as too much of a preacher, the answer is looking at us in the mirror.  Let’s just review some of reasons why we’re the problem:  have to keep up with the proverbial Joneses, have to go out to eat, have to have the latest and greatest gadgets, have to go on two vacations per year, have to have over 100 TV channels, blah, blah, blah.

You think I’m exaggerating?  Well, then take a look at the data from the US Bureau of Labor Statistics for 2017 (the latest batch of full-year data).  Here’s what you’ll find:

 

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Note: Table data is from Bureau of Labor Statistics (2017 latest year available):  follow that link, then click on XLSX and read 2017 information.

So, there you have it—we spend a lot and save very, very little.

I’m not going to bore you with a discussion centered on addressing the above spending psychosis.  I’ll save that critical discussion for a separate blog.  Instead, I’m going to have a conversation with you about debt management.  Specifically, paying off your debt early.

How to START Getting Rid of Your Debt Today

Organize your debt from smallest amount to largest amount.  If you have two debts with the same amount owed, then put the one with the highest interest rate first.  Then reach out to us and start enrolling your fixed interest rate loans in bi-weekly payment plans.

Once enrolled in a bi-weekly payment plan, call the bank and schedule that smallest loan for payoff as soon as possible.  When you are speaking with the bank, they will tell you what your new bi-weekly payment amount is for that loan.  Confirm that new amount with the bank and pay that loan off ASAP.  Try to pay it off in one year.  Then, once that loan is paid off, go on to the next loan.  Again, call the bank and explain to them that you want to pay that next loan off by adding the bi-weekly payment from the loan you just paid off to the bi-weekly payment for this loan.  Then do your best to pay that loan off in one year.  Then repeat for each loan, saving your mortgage for last.

Think of this step as using your bi-weekly payments as a debt steamroller to just crush your loans, one by one. The key is to be persistent. Stick with this process and you will steamroll your debt out of existence and be well on the path to personal and financial freedom.

Get Some Skin in the Game

We tend to take something more seriously when we have to pay a bit for it.  Don’t believe me?  How many of you out there have lost something you didn’t pay for and didn’t get that upset about it?  And how many of you out there lost something (or somebody else lost it for you) that did cost you a pretty penny?  I bet it hurt a lot more when that thing that cost you a pretty penny just up and disappeared.  Here’s another example.  How many of you had your parents pay for your undergraduate degree, then years down the road you went back to school for an advanced degree…but this time you paid for it?  I’m willing to bet your academic performance was a lot better when YOU paid for your education rather than when your parents paid for your degree.

Is This Bi-Weekly Payment Program a SCAM?

No, the bi-weekly payment plan is not a scam.  Our program is administered by a FDIC bank.  As a FDIC bank, they are permitted by the Federal Government to transfer your money from your checking or savings account to your lienholder.  And, as a FDIC bank, they do NOT collect interest on your money as it goes through that transfer process.  Click here to read in more detail why this program is not a scam.

This program has a fee that is disclosed on every contract.  You’re not just paying for the savings and early loan payoff.  What you’re paying for is AUTOMATION of a plan that comes with convenience and control features because if left to our own devices, we just wouldn’t do it.  Click here for more information on the convenience and control features of the program, as well as examples of savings.

That’s a Wrap

We need to take our debt management a lot more seriously.  And when we do, the rewards are life-changing.  So, get on the path to personal and financial freedom today by enrolling your loans in bi-weekly payment plans.