Interest Rate Swap

Most people want to swap a higher interest rate for a lower one to save money, but is it worth it once you refinance and add closing costs?

When you refinance for a lower interest rate it can save you money in the long run, but realize that all of the additional fees they add to your principle amount will take years to recoup potential savings.

The average life span of a mortgage in the US is 5 years. In that five year time block consumers pay anywhere from 77.71 - 83.9% interest on a note with a 4.75 - 6% interest rate (the monthly interest/by the principle and interest)

When you begin paying on a new mortgage over 80% of your payment goes to interest. It takes a substantial amount of time before you gain any positive equity position. So if one refinance or makes a new purchase every five years they are just digging a larger and larger black hole that is sucking more and more of their money into the interest void of "never recovered money".

Everyone does it that way because we don't think there is an alternative... 

So can you really swap an interest rate for another without paying fees and loosing more money....

Yes - By using an Interest Cancellation Account.

Let me explain, there are two types of loans Open-Ended and Closed-Ended, one has the leveraging ability to cancel interest on the other if used properly. Let me explain how:

Closed-Ended; you can only put money in by making full scheduled payments (amortized payment schedule), you can not take money out, interest is calculated on the months end principle balance, additional payments applied to principle amount are not credited until the following month.

Open-Ended; you can take money out and you can put money in, views daily balance to assess interest charges, You only pay interest on the average daily balance, money applied to principle amount effect interest charges immediately, you can utilize float time to your advantage.

By leveraging an open-ended account to pay down principle amounts of closed-ended account you can drastically reduce the amounts of interest you will have to pay. You are now using cheap money to pay off expensive money, Interest Rate Swap without paying additional fees.

Caution - Don't attempt this on your own. It takes strong money disciplines to manage debt correctly and if managed incorrectly can wind up costing you thousands more. This strategy to save money is most effective when driven my mathematical computations based on the variables of ones financial situation. The more variables there are the more possibilities there are in a strategic interest cancellation schedule.

To receive a customized Interest Rate Swap Assessment complete the contact form, mention that you read this article and I will wave the $75.00 fee.

Paying Off Debt

If you have any kind of debt you are loosing money daily and going further in debt.

If you are ready to move from a life of debt filled with stress and worry into a life of debt free living where you have financial choices and stress free sleep at night here are*Six steps to plugging your money leaks, *Understanding some basics about finances so that you are as effective in your efforts as possible, *Becoming proactive when it comes to your financial wellbeing because It’s all about you and your goals - nobody else!

 

Stop using your Credit Cards:

This is the #1 recommendation commonly advised by financial advisors. If you are using your credit card to buy daily needs or fund impulse purchases – STOP! Leave them at home until you develop stronger money disciplines. However there are ways to leverage your credit cards in accelerating the pay off of debts but you need to have debt management software that understands these principles and guides your financial transactions with mathematically calculated executions.

Know your Debt-To-Income Ratio:

Most people don’t have a matter-of-fact knowledge on their debts vs. income. Most just passively approach their bills and have a “I’ll pay it off  sometime“ attitude, they are ignoring the reality because they are afraid of it. How can you achieve your financial goal if you don’t know what it even looks like? Just playing defense when it comes to your finances is not a balanced strategy you need to play a strong offense as well.

Get The Details:

Knowing the details about your enemy is half the battle in paying off debt. In order to plan an effective plan of attack you must know how many debts you have, what the interest rates are, what the balances are, the types of debts they are (open ended-closed ended, secured-unsecured), what the remaining months are, months already paid.

Reduce Interest:

Some simple steps can literally save you thousands of dollars. Asking your lenders for a lower interest rate will give you more leverage and get you on the fast track of paying off debt. You can negotiate with your credit card company for a lower rate, particularly if you have had them for a period of time and are in good standing with the company in way of no late payments, or over the limit balances. Call them up and request a lower interest rate shoot for 9-12%, if you don’t get the results you desire ask to speak to a manager or supervisor, most call center personnel don’t have the authority to make changes to your account.

Have a Strategy:

Know what your monthly discretionary income is (left over money after all the bills are paid) know when bills are due, when your income comes in, what your freedom from debt date is, what you will do with extra income (tax return, bonuses, raises, seasonal income, part time jobs, home based business income) apply some discipline here, you will want to get the biggest bang for your buck and maximize your money’s performance so you reap the financial benefits.

Plan Your Rewards:

Paying off Debt boot camp can become monotonous. Rewarding yourself will help motivate your discipline. Having a visual goal will help you stay on track and could even improve your performance and results.

Bottom Line - This is your money we are talking about here, you need to decide if your are going to just give it to someone else (credit card companies, mortgage company, banks) or if you are going to keep as much of your own money as possible.

Interest Rates - Will Eat You Alive

Most consumers look at their interest rates individually. 5% here, 9% here, 14% here...individually they look small and manageable right? WRONG! collectively you are paying upwards of 30% or more.

If you are paying interest rates of any kind you are falling further and further behind everyday. Interest on any debt is ticking 24/7/365 in the banks benefit, your income is not ticking at that pace.

With the effects of compounded interest most people will end up paying for their purchase close to if not more than twice over the term of the financial agreement. Most home owners will pay over 200% of the purchase price of their home with a traditional 30 year mortgage. What kind of Sense Do Mortgages Make Anyways

You can either pay interest rates or you can earn interest. Most people don't know how to because they weren't told how to and quit frankly the banks don't want you to know how to either.

Paying off your debts as quickly and strategically as possible should be your ~ Strategies To Save Money ~ #1 Priority!

It is highly recommended that you get a customized strategic payoff for you and your unique situation. It is a mistake to attempt this on your own or to apply "generic" recommendations in regards to paying off debt.

Many so called experts advise to just pick the highest interest rate and pay it of first and then work down the list of all the other debts without knowing one thing about their financial situation. In in reality, based on the variables this could end up costing you more money - lots more money.

Factorial math is what drives the effectiveness of a strategic debt payoff plan. Factorial math provides a specific number of calculated solutions depending on how many variables you are dealing with. Such as the type of debt it is (close ended or open ended) , how many debts you have, the terms of the agreements, months already paid, months remaining, interest rate, payment amount, how many days there are in the calander month, how often you get paid, discretionary income....etc.

If you have just three variables, you potentially have six solutions. If you have six variables, you  would potentially have over 700 possibilities.

1	1
2	2
3	6
4	24
5	120
6	720
7	5,040
8	40,320
9	362,880
10	3,628,800
11	39,916,800
12	479,001,600
13	6,227,020,800
14	87,178,291,200

When you get up around 10, 11, 12 variables, it  starts going into the millions of possibilities. The critical thing about those possibilities with regards to debt elimination, is if you were to take one of those debts and place it in the wrong payoff position on our own, it could cost you potentially years and tens of thousands of dollars in interest.

Interest cancellation is the only way to stop interest rates from eating you alive financially.

Request a Interest Cancelation & Strategic Payoff Quote.

Cut Your Taxes

Did you know that no matter what income bracket you are in if you earn money from a JOB, you pay upwards of 50% in taxes....don't believe me? Let me show you how it all adds up!

You go to work you earn a wage, before you get your money Uncle Sam gets "his cut" first!

Then when you pay your power bill, you pay tax

You pay your phone bill, you pay tax

You buy groceries, you pay tax

You buy clothes for your kids, you pay tax

You put gas in your car so you can go to work again, you pay tax

Are you following me...  they get you coming and going!

Don't feel to bad most people are in the same boat as you, the only ones who are not are the ones who own their own businesses. If you own your own business you can shelter your income from various taxes and you can also claim significant deductions that others can't.

Now the type of business will directly affect the deductions you can claim of course. A home based business is an excellent way to cut your taxes. The deductions alone are worth thousands of dollars, even if you don't earn a substantial income with your business. The Tax Advantages of a home based business are substantial!

This home based business can be; candles, wood furniture, daycare, online marketing, Network Marketing, car repair, Direct sales, animal services... almost anything as long as you do some or all of your work from home it can be used as a home based business.

When you have a home based business you can claim your power bill, phone bill, square footage of your home, computer expenses, mileage on your car, home improvements and upkeep, you can even hire your dependant kids to work for you..the list is vast but all together can literally save you thousands of dollars on your taxes.

If you don't have a homebased business - Start one! It is an effective way to get Uncle Sam's hands out of your pockets and Save money!

Learn more about Home Based Business Tax Relief

Where Money Strategies Start

It all begins with you and how you view/perceive money.

If you look at a $50.00 bill what do you see...

• A shopping spree
• Your monthly power bill
• A new Xbox game for your kids
• A addition to your emergency fund
• A extra credit card payment

All the Money Strategies in the world mean absolutely nothing if you don't "See" money, if you dont' "See" how money works either to your advantage or your disadvantage, if you don't "See" the advantages and benefits of what is being shown to you.

You must begin to make a paradigm shift in your way of thinking otherwise, you will continue to get the same results over and over again.

"We cannot solve problems by using the same kind of thinking we used when we created them.” -Albert Einstein