How to repay your debt using the IBC policy! Many of us put off saving because we want to repay our debts first. We end up in a debt cycle, Income -> Repay debt ->Borrow money ->Income. When you delay compounding to pay debt, your completely out of control and have no safety net. In this video we go over why taking the IBC policy approach, will help you to repay debt faster and start saving now!
By implementing the infinite banking concept as a financial strategy, you’re able to repay your debt faster and start saving.”
Do you have a debt you’re thinking about repaying before you start saving? Most people hate debt, so they put all of their disposable income towards repaying that debt, whether it’s their cars, student loans, mortgages, or credit card bills. The point is that they focus so heavily on repaying the debt that they forget to focus on the saving aspect of their financial situation.
So, let’s focus on how that affects compound interest. The key variables for compounding interest are time and money. The more time you have, the less money you need to set aside in order to put that money to work for you. The less time you have, the more money you’re going to need to put aside in order to make that money work for you. But really when you delay compounding in order to pay off debt, you’re completely out of control and you have no safety net. So you go from a situation where you have cashflow that’s going towards debt and therefore no savings to a situation where you have more cashflow once your debt is paid off, but you don’t have any savings at that point, you have to start saving. Our focus is in helping our clients to be more in control of their money.
The problem with repaying your debt before you start to save is that it takes you from one weak financial position to another weak financial position. You go from having no cash flow and no savings to having cash flow, but still no savings. All because you don’t have access to capital and because you don’t have access to capital, you’re forced into what we refer to as the debt cycle. Income, repay debt, borrow, because you don’t have access to capital income, repay debt, borrow. It’s the proverbial hamster wheel and it doesn’t have to be this way. We have to show you how to save while you’re paying off your debt and that will put you in control of your cashflow.
By implementing the infinite banking concept as a financial strategy, you’re able to repay your debt faster and start saving. Now it’s really quite simple. Instead of taking your extra cashflow which you were using to pay off your debt, take your extra cashflow and begin an IBC policy. Then when the cash builds up, borrow against the policy and use a policy loan to pay off your credit loan. Now you can redirect the credit payment back to the policy to replenish your access to capital.
The benefit of using this process to repay your debt is that it puts you in control of your money and you’ll have less dependence on banks and credit companies going forward. You end up with more savings sooner, paying off your debt faster and setting yourself up for the future where you’ll have less dependency on banks. All three of those issues translate into control for you. And remember, any other way or method of getting out of debt takes you out of control of your money.
In conclusion, in order to put the system to work for you, the only thing that needs to change is how you use your money. In its most basic form, we’re taking liability, cashflow payments and converting them into creating assets. And by doing so you’re in control of your money and you’re securing your future and making your future that much brighter.