Neighbor Wealth

Why do we have debt? Why do you use credit cards? Why are people losing their homes? Could an over accommodating financial system be the reason for real estate prices escalating to the point of imploding into self-destruction?

Are you to blame for your financial situation or are you a victim of financial overdose?

We need to seriously wake up! Of course the government is going to step in to fix the situation, but do we want them to? Hell no!! We are the American consumer! We have incredible power! Our decisions move the market place and make or break businesses it is that simple!

What would happen if people no longer used credit cards?

What would happen if everyone paid off their mortgage?

How much power would you have if you had no credit cards and no mortgage?

What would you do differently if you had no financial obligation at all?

What would you do if you could live your life in any manner that you wish?

I ask again why do we as a society use debt?

Debt is used in our society to acquire something immediately. You pay a bank or someone an extra amount of money so that you can enjoy what ever it is you bought immediately. The fee you pay is called interest. The result is amortization.

Amortization is cancer to the individual paying it and a windfall to whoever is receiving it. This is our system and you most likely participate in it because you are a member of our society.

I have nothing against a bank making money. This is America and I believe that anyone should be able to charge a fee for a service and receive money for their goods and services. If you as the consumer agreed to an interest rate or the price of a car then I believe that whoever is on the receiving end of that is entitled to it.

I also believe that you as the consumer have the right to pay that debt of early. I believe that it is in your best interest to pay that debt off as soon as you can. If you don’t believe me, pull out your mortgage contract and find the total that you will pay the bank at the end of your note.

Search on-line and play around with an amortization calculator. See how much money you save if you pay your house off 10 or 20 years early. For example, if you borrowed $300,000 for a mortgage at 6% you will pay $347,514.57 in interest over a 30 year loan! Let’s say you pay your house off in 10 years. You will pay $99,673.81 in interest over 10 years. The difference is about $247,840 in savings!

Let’s say that after you paid your house off (in 10 years instead of 30) you took your house payment of $3,330 and invested it with an annual return of 5% for the 20 years that you would have been making your house payment anyway. You would be investing 39,960 annually with a 5% return. If you continued to invest 39,960 a year and you reinvested all returns for a total of 20 years, you would have $1,387,381.30! That is much better then paying the bank that extra 247K isn’t it?

Welcome to my Blog! I believe that there is an answer to this situation and it is not a Financial Bail Out! We need to address this problem at the very heart of where it started, with your mindset! This is the purpose of this Blog and my web site. (Under Construction) Please join me as I explore methods to assist you in finding your way to prosperity through debt recovery, debt resolution, credit debt help, and wealth management.