Techman
New Member
I was deep in debt. Its gone now.. But while paying off this huge debt I learned a technique that is just what the doctor ordered.
But you have to be disciplined.
The shortcut to a payoff was a line of credit at Prime rate of 3.25%. That reduces the interest rate down to 30-50 bux a month for a balance in the teens. The debt pay down came so much faster than spending 300-500 a month just for interest.
If I may suggest.. ppl get a line of credit in addition to a credit card. All you do is write a check to pay off the CC each month. Write a check for all other expenses as well. Its just like if you paid cash. Then if the CC company plays its rape game you just walk away from it.
Then all money income is deposited into the line of credit just like your regular checking account. Actually that is what it is. Its a fancy name for a checking account. The result is it reduces the average balance from which your interest payment is calculated. The average balance will be just a few hundred bux with interest at 3.25%. The interest charge is about the same or less than the service charge on many commercial accounts.
At the end of the month you write yourself a paycheck. Your balance in the line of credit should always be around 0 zero.
You will save hundreds in interest each month. What you pay in interest is tax deductible. The relief is palpable when the debt is paid down so much faster and you have cash in your pocket.
But you have to be disciplined.
The shortcut to a payoff was a line of credit at Prime rate of 3.25%. That reduces the interest rate down to 30-50 bux a month for a balance in the teens. The debt pay down came so much faster than spending 300-500 a month just for interest.
If I may suggest.. ppl get a line of credit in addition to a credit card. All you do is write a check to pay off the CC each month. Write a check for all other expenses as well. Its just like if you paid cash. Then if the CC company plays its rape game you just walk away from it.
Then all money income is deposited into the line of credit just like your regular checking account. Actually that is what it is. Its a fancy name for a checking account. The result is it reduces the average balance from which your interest payment is calculated. The average balance will be just a few hundred bux with interest at 3.25%. The interest charge is about the same or less than the service charge on many commercial accounts.
At the end of the month you write yourself a paycheck. Your balance in the line of credit should always be around 0 zero.
You will save hundreds in interest each month. What you pay in interest is tax deductible. The relief is palpable when the debt is paid down so much faster and you have cash in your pocket.
