Debt Free: Pay Off All Of Your Debt, Including Your Mortgage, Fast

July 27th, 2010 | Posted in Debt Relief

The single most important financial rule is the simple RULE OF 72. But, be sure it is working to your advantage and not compounding against your accounts.

The RULE OF 72 can tell you how long it will take to double your money in any particular investment. Unfortunately, it also tells you how long it will take for any debt you have to double.

All we do, is divide the number 72 by our interest rate we are paying against or earning on our savings. Do you have a $10,000 account paying a 3% interest rate? It will grow to $20,000 in 24 years, because 3 goes into 72, 24 times.

If this does not excite you, consider this example: If you had a penny that doubled every day for 30 days, amazingly, it would grow or compound to almost 11 million dollars in just 30 days.

The famous Baron de Rothschild, when asked to name the 7 wonders of the world, responded, “I cannot, but I know that the eighth wonder of the world is COMPOUND INTEREST.”

The key is that we want to earn a higher % return on our savings, but at the same time pay a lesser % interest on money that we owe and wipe out as much debt as we can. Why make the banks wealthy? The more we keep for ourselves the better off we are. Lets take advantage of the Rule Of 72 instead of having it take advantage of us.

Our mortgage is usually our largest loan. The financial institutions kill us, by using the Rule Of 72 in their favor. As the years go on, the banks watch their interest explode, while we pay only a small amount towards the principles in our mortgages each month. Most of the payments go towards interest.

Is there a way around this? Yes there is! Why not pay down that mortgage in half the time? There are simple ways to accomplish this:

One way is to send more principal with your payment each month, to be applied to your loan balance.

Another option is to use a bi-weekly payment plan. Most mortgages can be set up to utilize one of these. If your bank does not, do an internet search on: “bi-weekly mortgage plan.”

Finally, there are various software programs that are web-based, that homeowners can use to pay off their mortgages and all other debts, more quickly. Again, use the internet search to learn more.

The one I use and have shared with my readers, enables homeowners to cancel out interest on their mortgage with the money they normally deposit in their checking and/or savings account. It uses an advanced line of credit or ALOC, which is an open ended loan that bases the interest calculation on the daily balance, by using a daily periodic interest rate, rather than the month-end balance like most mortgages use. Without making this confusing, this allows the homeowner to use all of their money and income for a given period of time, until it is needed to pay their monthly expenses. This maximizes money power and reduces the banks ability to earn interest on the homeowner’s money.

There is a whole section teaching this in my book 3 SECRETS OF MILLIONAIRES. Simply do a Google search. If you would like a free analysis, visit the PayOffYourMortgageInHalfTheTime web site. You will know exactly when to expect to be mortgage free and how much money you will have saved doing it this way. Do your research! By setting up a plan to pay off your loans faster, you will be surprised at just how many thousands of dollars you will keep for yourself, instead of giving it away to the bank.

This is a unique way to pay off your mortgage in half the time. More instructions are available at that web site.

Get the RULE OF 72 working for you, to create your fortune, instead of having it work against you to make the banks rich.

Looking to pay off your mortgage fast?, then visit www.3secretsofmillionaires.com to read the whole book on Secrets Of Millionaires and wealth creation. Unique version for reprint here: Debt Free: Pay Off All Of Your Debt, Including Your Mortgage, Fast.