How To Pay Down Your Debt To $0 fast Using No New Loans!

This is the debt elimination plan to use if you can’t obtain a large lump sum of cash for debt consolidation. People that rent or have to high a loan to value to qualify for a second mortgage can still eliminate debt with this plan. It works if some of your debt is credit cards and you pay over the monthly minimum payment on some.

The difference between what you pay monthly on your credit cards and the minimum payment is used to create the margin that makes this plan work. The amount of cash created for the margin is then used to pay off the highest interest debt. All other credit cards are get paid with the minimum monthly. When the high interest rate is paid off. The next highest card gets worked on.

In the example below the margin created is the difference between actual monthly card payments and the minimum payments. After adding up the difference the margin created is $111. This is the amount used to start paying off debt at an accelerated rate starting with the highest interest credit card.

CreditorInterest RateYearsMonthsActual PaymentMinimum PaymentMargin
1st Mortgage8.5%2610$748.26$748.260
Credit Card #121%42$50$30$20
Credit Card #221.25%43$50$45$5
Credit Card #315.9%38$125$69$56
Credit Card #417.5%310$175$156$19
Credit Card #521.5%43$50$39$11
Auto Loan #111.5%410$115$1150
Auto Loan #212%410$200$2000
Student Loan10%124$73$730
Taxes and Ins.0%2610$120$1200
$1706.26$1565.26$111

Below is the debt listed in order of greatest interest rate. The $111 margin created would be applied to credit card #5.

CreditorInterest Rate
Credit Card #521.5%
Credit Card #221.25%
Credit Card #121%
Credit Card #417.5%
Credit Card #315.9%
Auto Loan #212%
Auto Loan #111.5%
Student Loan10%
1st Mortgage8.5%
Tax/Insn/a

When credit card #5 is paid off, the new margin becomes $150 ($111 + $39). This new margin amount is now applied to credit card #2.

CreditorInterest Rate
Credit Card #5Paid
Credit Card #221.25%
Credit Card #121%
Credit Card #417.5%
Credit Card #315.9%
Auto Loan #212%
Auto Loan #111.5%
Student Loan10%
1st Mortgage8.5%
Taxes/Insn/a

When credit card #2 is paid off, the new margin becomes $195 ($150 + $45). This new amount is now applied to credit card #1.

CreditorInterest Rate
Credit Card #5paid
Credit Card #2paid
Credit Card #121%
Credit Card #417.5%
Credit Card#315.9%
Auto Loan #212%
Auto Loan #111.5%
Student Loan10%
1st Mortgage8.5%
Tax/Insn/a

This process continues in a domino effect until all debt is paid off. In this example, $101,844 in interest will be saved. Time to pay off total debt is reduced from 28 years and 10 months to 11 years and 1 month!