Last night I had two conference calls that were totally different and yet, similar as well. The differences were clear because one couple was in their early 60’s and the other couple was in their late 20’s. But both are going to be able to get out of the debt situation they have because the idea of debt elimination resonates with them.
The older couple has unfortunately had some income setbacks and has had to rely on living off the credit cards. They are going in the hole every month to the tune of $2000 a month. We were laughing last night because the wife was telling me that she obviously has been stressing about this and one night she had a dream that Dr. Phil, in that blunt Texan vernacular, told her that she needed to get a plan and stick with it. Turns out by selling their house and downsizing their life, which they have wanted to do for some time anyway, they will be able to get rid of their crushing credit card debt and still have $50,000 to work with. To them, investing in the debt makes total sense for them.
The younger couple inadvertently got into a contract on a house that they were told they qualified for but now it turns out they don’t. Their only option is to do whatever they can to improve their debt-to-income ratio so they can actually qualify for the house and then flip it. They are going to make enough to get rid of their credit card debt and then find something that they can actually afford to live in.
The bottom line is that any financial situation can only be enhanced when you have a debt elimination plan that you always are focusing on. No matter what situation comes up, because you will have been working your plan, you will always have more options than would have if you didn’t have a debt elimination plan in place. Remember, if you focus on your plan, you can actually be debt free and pay off your mortgage in less than 10 years.
I’m off to New Braunfels tomorrow to speak so enjoy your evening. I can’t wait to see what my nephew is wearing tonight.
Take care and focus, Keith Phildius
