I am Going to be Debt Free will help transform your financial life. Accessible and informal, this book offers a unique and succinct approach to budgeting by one of the most trusted names in financial planning in Ireland. Combining helpful advice, insightful real-life anecdotes and useful exercises that set out real, achievable goals, I am Going to be Debt Free will give you the practical tools required to get out - and stay out - of debt forever.
It is an awful feeling — and so frustrating that no matter what you do to cut back on your spending, or how hard you work, you never seem to have enough money to live on each month; there is too much month at the end of the money. So what are you going to do about this situation?
What do you have to do to get on top of your finances? What steps do you have to take to figure a way out of the mess you are in? Well, first things first: you are not alone. You know what? I have.
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What I find sad about cases like this is that the people involved seem to have given up on themselves rather than on their finances. Let me give you a quick example of this. By the way, I am going to be giving you real-life examples throughout this book that you will be able to relate to, and be inspired by. Recently, I met a man called John, who came to me looking for help because he was about to lose his job.
He was taken aback by my reply. The other 80 percent was spent worrying about his finances. He was paralysed by his debt and what the future held for him.
He was in a very dark place and saw only one escape route that would put everyone at peace. John thought that his debt was insurmountable. Yes, you read it right: twelve thousand euro. To cut a long story short, after many sessions with John, and after putting a plan in place for him that would eliminate this debt once and for all, he did it in January of this year. John and his family are now debt-free apart from a small mortgage, which is very manageable.
He is enjoying life again and is a completely different person. His relationship with his wife has changed for the better, and in August of this year John and his family are going on a family holiday together for the first time in years, all paid for in cash from their savings. How John solved his problems was not down to me, it was down to him.
Before you continue...
You, and only you, can get yourself out of debt and live the life you want. As you read each chapter in this book, you are going to learn very quickly where your problems lie, and how you got to this point in the first place.
- The Debt Free Black Girl: Kristin Sutton.
- The Secret Shame of Middle-Class Americans.
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But the most important thing is that I am going to show you a way out of debt, and how never to return there again. Let me tell you one more thing which is very important to know about me, the person giving you this advice.
A personal shift in thinking
I am debt-free apart from a very small mortgage which I could clear at any time. I am not beholden to anyone, and I made a conscious decision to become this way a number of years ago. I have never been in debt and have never been in arrears. You are not getting advice from someone who has made loads of money and then lost all of it again. You are not getting advice from someone who is telling people how to get rid of their debt but is up to their own eyes in debt. What is actually happening is simply paying down the mortgage early.
I disagree…simple interest charged hundreds per year in the HELOC for a small amount compared to compounded interest extra payments reduce principal immediately and therefore reduce compounded interest over time in the mortgage amount is a significant difference. Cameron, I agree with your disagreement. The very fact that a large chunk of cash is immediately subtracted from the mortgage, particularly in the beginning stages of a mortgage where the ratio of principal to interest paid is right around As a result your payments become increasingly more efficient.
Comparably, the extra principal payment method will work but will be less efficient due to the time lapse between payments rather than one lump sum. Doing things with this method significantly reduces interest costs. Here is my situation. I paid off my mortgage years ago, but obtained a Heloc to pay for some one-time things such as a new roof, buying a 2nd home which I then sold to my son on land contract, etc.
I use credit cards all the time, but I pay them in full every month. And my cars are all entirely paid off. So my only ongoing debt is my Heloc and although they only require the interest to be paid each month, I pay much more than that. I figure that if you truly want to get out of debt, you reduce unnecessary expenses and pay down your debt as fast as you can manage. So, MY version of this is, of course, to pay down my Heloc as rapidly as I can manage.
Instead, I am going to get more serious about it. I am sitting on way too much idle cash in my credit union. So rather than get 0. If I find I have spent too much on debt reduction I can always use my Heloc debit card to draw some money down. Keep in mind that most Helocs come with a 10 year window for making draw-downs. There is an end in sight. The idea is that you can be paying a relatively low interest rate on the indebtedness and use the money you got from your debt to invest in the stock market where you should get considerably MORE than you are paying on your debt.
Why would anyone want to pay off the mortgage on primary residence? With all mortgage paid off primary residence , there are no more interest payments deductible from your salary.
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Who on earth would like to pay higher taxes? The interest I pay on my home saves me from paying higher bracket taxes since on paper I made less money. I love the primary residence debt. The moment mine is paid, I will change it into rental and get get another primary residence. Rentals give more tax benefits and income is taxed at much lower rate, so with no hassle I produce real money but on paper report losses.
i am going to be debt free dont just change your financial life transform it Manual
Are you correctly calculating the new tax guidelines effective ? Interest on mortgage debt remains tax deductible as before but only if the taxpayer itemizes — and going forward, fewer taxpayers will itemize because the standard deduction was doubled for most. Mortgage interest is one part of itemizing but it is not applicable anymore for most homeowners. One has to get expenses over the standard deduction before any of it helps.
With the standard deduction increase for married couple to 24k along with the new limit for local taxes, the mortgage deduction is now practically worthless, as most will now just take the standard. I am one who will lose out greatly with all the changes. I will now use the standard deduction so what I pay in interest no longer matters.
I will actually pay MORE taxes this year instead of less because while the standard deduction increased we also lost exemptions. Heloc interests are calculated on a daily balance. So basically as long as your variable HELOC rates at or below a certain rate this process could be very advantageous as long as you treat it seriously and have complete discipline in executing it.
Actually do the math. A question for anyone who has used TruthInEquity…once joining, is there a public forum that you can join so that you can learn, share personal experiences of implementing these strategies? Sort of like a Facebook page where only members can join? Seems like having this type of forum for members to share with one another would be very helpful and motivating for others. There would have to be an interest savings to that, and I am still trying to prove that to myself.
This devastated me as i was dealing with other issues at that moment. Luckily for me, my cousin came around and told me of how a hacker saved her life. Yeah i agree. Why not to use that approach? I can just go now and pay 10k i have in Savings and from now my possitive cash flow use it to pay directly the mortgage. Then if i need more cash that my cash flow open the HeLOC.
After 10 months, you can re do it again by using 10k from Heloc to put into extra principle again. I put in the numbers in the spreadsheet, and it works well. Higher than your mortgage is fine. Step 1. Step 5. There is absolutely no need for the complex and obtuse strategy that you opted for when describing this to your readers. Give me a break. I have been trying to find an excel spreadsheet for this Velocity Banking strategy.
Can you please direct me to or send me a template for me to use to see how it works for my situation? Is step 4 necessary? Can you use your bank account as usual and then just pay your extra income every two weeks to the HELOC?
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