Are you dreaming of the day when you finally get to ring the “debt-free bell”? If that sounds like you, stick around to the end of this blog because we are going to do a deep dive on whether it’s better to be debt-free or to own your own debt.

There are many “financial gurus” out there advising people on getting out of debt and, certainly, for a segment of the population, that is an ideal goal. Many people are buried in debt and they need to get out of it. We are not arguing that point, but there’s another segment of the population who makes a really good income and has some debt. And, unfortunately, this advice is being pushed on them as well. And those people are literally living a life of hell getting out of debt or trying to be debt-free. 

And the problem with this advice is that by putting all of your free cash flow towards your debts, you’re not able to save. And a lot of times the advice is for you to save in a qualified retirement account where you can’t access that money. So, what happens is you get out of debt, but you still have no access to cash. And so what happens? You have to go back into debt. 

The solution to this is to start saving in a place where you have complete liquidity, use, and control of your money. That way you no longer have to depend on banks and credit cards when you need to go make your next major capital purchase, invest in your business, or take advantage of an opportunity that comes up. 

And here’s the issue: if you’re building your own cash that you can borrow against and utilize to pay off some other debt or to make purchases, now you are actually owning your debt. And looking at what Nelson Nash said, that’s what banks do. A bank for us. When we borrow money from a bank, it’s a liability to us. It’s an asset to the bank. If you’re the banker, you now own an asset. And sure, you have the debt. But now you can control the terms and conditions. You can control when and if those payments are made. You are in control. And that’s the point. 

Here’s the perfect example. Let’s say you have $5,000 in your bank account today and you also have a balance on your credit card of $5,000. And tomorrow you decide, “Hey, I need to get out of debt. I’m going to take this $5,000 and I’m going to apply it towards my credit card.” Today, you have a net worth of zero. And tomorrow, after you pay off that credit card, you have a net worth of zero. But what’s the difference? Today, you own and control that $5,000 in your bank account. As soon as you give it to the credit card company, you no longer have liquidity use or control over that money. And your net worth hasn’t changed at all. You’ve abdicated your responsibility as a steward of that $5,000. 

You see, when the money is in your control, you have the opportunity to invest it, earn money on it, and do basically whatever you want with it. But as soon as you hand it over to the credit card company, you’re giving them that control and the opportunity that comes with it. 


That’s why we recommend borrowing against your own money and using that to pay off the credit card. And now that you own that debt, you could redirect the payment. You were sending Visa, MasterCard, or Citibank back to your policy. Now you own the debt. It’s an asset to you and you’re earning interest on that money. 

We always say Never Drain the Tank”. Always allow that money to continuously compound interest. And that’s what we do with specially designed whole life insurance policies designed for cash accumulation. We’re allowed to own our debt and repay ourselves, so we never stop that compounding. 

If you’d like to learn more about how to get started with a whole life insurance policy designed for cash accumulation, be sure to visit our website at to schedule your free strategy session today. Or if you’re interested in learning more about how we use this process, check out our free web course. It’s about an hour and it goes into a deep dive of how we do this.

And remember, it’s not how much money you made. It’s how much money you keep that really matters.