Rick Vaughn, Categories: I don’t know about you but I can rarely go a day without hearing the commercial for “Transforming Debt into Wealth Program”. Recently, I had a friend who was interested in this and was asking me how it worked. Admittedly, being able to pay your mortgage off in 5 years is a truly tempting advertisement. So I did some research and here are the 4 points Mr. Commuda is trying to drive home.
1) Make a budget.
Will’s point of view- Maybe it’s my lack of faith in people but, life is too short to be frugal and have no fun. Everyone has known since the beginning of time that if you live below your means you will have more money in the end. Don’t be the fat guy driving a red BMW convertible when your 60 years old. (That is worst!!!)
2) Cut up your credit cards except one or two for emergencies-
Will’s point of view- Commuda also gets into paying as much as possible on cards that give rewards and such. I would have to agree with him on this point you never know when your car might break down or the unexpected happens.
3) Put all excess money toward your debts by highest interest rate first (some say pay smallest debts first for psychological benefit) - FW take use other peoples money (0% balance transfers)
Will’s point of view- Certainly, the 18% credit card should get paid off first and foremost. However, I can’t understand where you might come into that money? This is a point that I’m still struggling with obviously. If you pay for a mortgage, car payment, insurance etc… where is that money coming from?
4) After debt free invest for the future - pay yourself first/alternative income streams
Will’s point of view- I’m a huge fan of multiple streams of income. As a rule you should look to take 10% of your net earnings and either invest it or save it. Certainly, not having debt (mortgage, or car payment) would put you in the driver seat in terms spendable cash.
With all this being said. These are some great points and I would invest the money (if you can afford to) for the education alone. Remember most of these points stress discipline which few people have. Use common sense and for God’s sake get out of debt.
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1 Comments until now.
I just attempted to purchase the downloadable debt free program for 39.95 and cancelled my transaction. The ordering process is a hastle, as I was repeately asked to order more stuff costing over $300. When I tried to deny those products I was not able to figure out how to get the downloadable product I originally signed up for! I was asked to complete a survey in order to have a 30 minute phone consultation. All I wanted was the advertised program! This thing is a scam to get even more money from me (the consumer), who is trying to get out of debt!
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