Archive for December, 2006

Useful News: Stop Drowning in Mortgage Interest Debt!

Posted on December 15, 2006. Filed under: money, mortgage debt, Useful News |

If you haven’t inherited wealth—80% of US millionaires are first generation—and haven’t been taught how to manage money, your business and personal will surely suffer.  How many of you can cringe, like I can, at 10, 20 or even 30 years of decent income production with nothing to show for it?

As a service professional—many readers are self-employed or solopreneurs—you may have succeeded in overcoming your inner barriers to getting paid for you value versus your time and have a fantastic fee structure, but you are in the red, still.  How can that be?  Ignorance—often.  Bad money management—generally.  Overspending on good worthwhile products, training and materials—always!

The scissors must come out for us spenders so that we cut it out!  That is a whole other topic that you can deal with when you talk to your coach or therapist (you do have one of those don’t you? You should!).  Rather, I’m even more interested in the self-perpetuating ignorance that leads to poor money management skills.

For example, if you “own” a home and have a home office you should be especially interested in not only deducting your home office expenses, but in getting out of the crappy principal and interest loans 49.6% of us are in !  When I signed my loan docs I about had a heart attack reading the truth in lending statement that told me I would be paying almost 400K in interest on my home!  But we were so thrilled with getting in the
San Diego market we forged ahead, signed the papers and quickly put it out of our minds.

Four years later, I’m fed up with myself.  Debt is so depressing! And paralyzing.  With my husband still in school at the time, my own astronomical student and personal loans I felt despondent and crushed by the amount of debt I had, compared to my income.  As I should have. Eventually, I put it out of my mind (I have very strong skills in the rationalization and denial departments) and went on my merry way.

Lucky for me I just found out about a way to radically reduce my home mortgage interest, duration and overall cost.  It’s not a silver bullet or get rich quick scheme.  It’s knowledge and math.  I’m thrilled.  The super hard part for me will be staying out of denial as I implement this strategy.  I’ll have to deal with the cold, hard, depressing numbers in detail.  As I do this I can be VERY encouraged by the power I feel as my principal balance goes down and the banks get less of my very hard earned money.  I’ll be using a software program that can show me projections as well as actual elimination of debt.  If you are a homeowner, want to be a homeowner, a real estate agent, mortgage broker or anyone else in the field you want to learn this information.  This guy, Harj Gill, is a consumer advocate—watch out for “loan programs” that purport to save you money, but only line other people’s pockets.

The bottom line is that we are getting ripped off by greedy lenders, who don’t care if we eventually lose our homes due to what will happen when they jack up our payments after 29 months and we can’t keep up.  Don’t be fooled any longer.  You can sign a petition so that the laws are changed to protect us.  No more heads in the sand.  Tell your friends and family.  Buy the book to learn what I’m talking about. This isn’t EASY.  This is painful and it is a million times better than your current situation of drowning in debt (paying for 3-4 homes, while receiving only 1!).

Good side I wrote about “waking up” recently.  I’m awake people and I’m not happy!

Disclaimer:  This is not financial advice, but solely my opinion and attempts at sharing information in an educational way.  Consult your own professionals.  Do your own due diligence.