I drove to New Braunfels yesterday which takes about 4 hours.  Wasn’t to bad though because I don’t mind the drive and talk radio makes the time go by.  I drove through the lovely town of Austin. 

There were about 10 people there last night and we had a good time.  One couple mentioned that they were off the chart when we calculated how long it was going to take to become debt free.  Most people, once they calculate their plan, will be able to eliminate all of their debt, including the mortgage in less than 10 years.  So “off the chart” means that it is going to take them more than ten years.  This is usually caused by the fact that the person just recently bought their home.  People that have just bought a house within the last year will find that the system is going to take about 11-12 years.  This can also be caused by an unusually high debt-to-income ratio.  Some people are a little bit more creative than others when it comes to creating debt.  But most people will only be able to get into a certain amount of debt before creditors start to turn them down. 

 When I asked them if they had just bought their house they said no.  But when I got a little closer to them they said, “But we just bought our vacation home.”  I looked at their list and they only had two debts.  Their current house and the vacation home.  When I glanced down at the paper I noticed that the remaining unpaid balance on the first mortgage was $280,000 but the amount on the second mortgage was $400,000.  How amazing is that?  The system will actually have them paying off two houses in about 12-13 years.  They can probably get it to less than 10 years because of the fact that they don’t have a lot of consumer debt and they can afford to put more than 10% toward their plan. 

I also met a nice woman that is changing careers and having a debt elimination plan in place will give her the ability to relocate anywhere in the country.  Good luck to her with her new career. 

Thanks everyone for an enjoyable evening and remember to shoot me an email to keep me posted on your success story. 

Take care and focus.  Keith Phildius

www.investinyourdebt.com