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  • Peter Arnold

Personal DEBT Elimination (Avalanche)

I want to begin this Blog Post by putting you at ease.

In this Blog Post, we're going to look at total DEBT ELIMINATION... one of the vital components of the Virtual Wealth FORMULA , which is ...


[[Passive Income + Financial Management + DEBT ELIMINATION = Virtual Wealth Lifestyle ]]

I realize when it comes to Personal Finance / Business Management / Debt Elimination, that those subjects can be a little intimidating. However, they are actually quite simple, because they are so logical.

For example, you don’t have to understand how GRAVITY works - or know how to calculate its power - in order to know NOT to jump off the Empire State Building. Why? Because you have seen and heard enough to accept the "truth" of gravity.

We don’t have to understand how our CELL PHONES work. We just need to know they DO work. The same will be true for you with regard to your financial success & security.

I will provide you will all the facts and, in some cases, the math, behind the facts. You won’t have to remember them all. Nor, will you have to understand them all ... just as long as toy can "believe" in their wisdom.

GETTING OUT OF DEBT - This is the single biggest step we can take to reduce our retirement income need - without reducing our lifestyle. That is, most people could actually live their "same" lifestyle on 40% to 60% less income ... IF they were DEBY FREE. Clearly, this can really speed up the whole retirement process.

Later, you will learn how to use the Debt Avalanche Method to pay off all your debts - quickly - without paying a dime more per month than you already pay on debt payments. Most people can be totally debt-free - including a 30-year home mortgage - in 5 to 10 years.

For the vast majority of families, "debt payments" alone, make up a huge portion of their total monthly expenses. As soon as you are debt-free, you need much less income to maintain your lifestyle - which obviously makes it much easier to retire faster ... since you simply won't need as much retirement income to live at the same lifestyle.

However, it isn't only that you would need less income for retirement. Once debt-free, you also would be able to "start INVESTING the money that you had been paying to your creditors in interest payments. Now, all that money is YOURS, to use to prepare for early Financial Freedom.

Above and beyond the wisdom of living debt-free, in order to accelerate your Financial Freedom date, I wish I could convey to you what an amazing boost to your quality of life you will receive from living debt-free. It means living STRESS FREE ... it provides an incredible sense of RELIEF - of security / peace of mind / self-worth. This gives you much more CONTROL over your life - so you can begin much sooner - so you can do more for others.


This is a wonderful debt-elimination program. The system is very easy to use, however it is extremely powerful. Another powerful strategy is the DEBT SNOWBALL System.

In any case, if you want "zap" STRESS ... and experience a feeling of real "freedom" ... unlike anything you have ever experienced before - just wait until you have eliminated all personal consumer DEBT. Consumer debt is all debt for items which tend to "go down in value" with time, or have zero value after you use them. For example, your credit card purchases, cars, furniture, electronics, vacations, recreation, etc, "depreciate" in value ... and also tend to be NON Tax deductable.

The only healthy use of debt is - financing your home - investments - your business (which do have TAX benefits). All other debt must be eliminated.

Note: The financing of INVESTMENTS can be very risky, and should be avoided, unless you are certain you know what you are doing. The same caution should be used when using debt to start, or grow, a BUSINESS (or to extend the life of a struggling business).

This Blog Post is devoted to helping you get OUT of debt - much quicker than normal -so that you can have less stress, and can enjoy Financial Freedom much quicker than normal.

The concept of a "Debt Avalanche" is based on neutralizing the terrible "negative power" of COMPOUND INTEREST ... which works "against" you when you have personal consumer DEBT (obviously, Compound Interest will work "for" you when you have SAVINGS and INVESTMENTS).

The following examples show the extreme damage high interest consumer debt can do to your financial health.

Example 1: A credit card balance of just $1,000 ... could cost you over $300,000 ...if you keep a balance on your credit card!

Example 2: Just one $50 night out, for a movie and a dinner, can cost you over $15,000 ... if you keep a balance on your credit card!

Example 3: A credit card balance of $10,000 - at 21% interest - and with a monthly payment of $175 - would take you 30 years to pay off. You would pay the credit card company $63,000 to use their $10,000!

Let's use Example #3 above to demonstrate a simple debt avalanche. By paying an "extra" $24 dollars each month, the $10,000 credit card debt would be paid off 20 years faster - saving you over $39,000 in unnecessary "interest". You would be free of that debt in just 10 years - instead of 30 years! Hmmm.

Perhaps you are thinking ... "I don't have any "extra" money to begin a debt avalanche". Not to worry ... we are going to show you how to trigger a Debt Avalanche "without paying a DIME more per month" (than you are currently paying for debt payments).

Consider the following example:

(a) A couple owns a house, with a $150,000, 30-year mortgage, at 7% interest - and a $997.75 monthly [principal and interest] payment.

(b) They also owe $15,000 on their credit card, at 18% interest. They are paying $748.86 a month on the credit card and, if they don't charge any more, they will pay off this credit card in 2 years.

(c) They owe $5,000 for a furniture loan, at 13% interest. Their payment is $307.24 per month, and it will be paid off in 18 months.

(d) They owe $20,000 on car #1. It is a 3-year loan, at 8%, and with a $626.73 monthly payment.

- Credit Card .......... 18.00%

- Furniture Loan ..... 13.00%

- Car #1 ................... 8.00%

- Student Loan ........ 7.50%

- Car #2 ................... 7.25%

- Mortgage .............. 7.00%

In the normal approach to paying off debts - assuming no "new" loans - it will take our couple 30 years to pay off their $220,000 of debt. Believe it or not, they would actually pay back $441,118.52 - for a total of $220,099.52 in total "interest" charges alone!

Using the DEBT AVALANCHE System - our couple would "keep paying their same total monthly payments" - until their first debt was paid off. In our example, the (SMALLEST BALANCE) "furniture" loan will be paid off first.

So then, they take the old $307.24 furniture payment, and start paying it to the "credit card company", because it is the loan with the HIGHEST INTEREST rate. So, they would add $307.24 to the normal "credit card" payment of $748.86 - for a total monthly payment of $1,056.10 on the "credit card".

It is that EXTRA payment that starts the whole Debt Avalanche optition.

This means that the "credit card" will be the next debt paid off. So, now our couple starts making larger payments on "Car Loan #1". They would add the old $1,056.10 credit card payment to the $626.73 car payment - for a total payment on Car Loan #1 of $1,682.83.

Our couple would continue that simple process until their last debt was paid off. In our example, it would be their mortgage.

Using this powerful method of DEBT ELIMINATION - they would be totally debt-free in just under 7 YEARS! Not only are they debt-free "23 years faster" - they also saved over $160,000 in unnecessary "interest" charges! This example makes it very easy to understand WHY it is possible for everyday people to "retire" much earlier than normal.

As you can see, you do NOT need to come up with a dime of "extra" money in your existing budget each month. In our example, it took 18 months for our couple to pay off their first debt. So, they didn't actually pay their first "Debt Avalanche" payment until their 19th month - yet they were still able to save a small fortune!

Can you imagine how much more our couple could have saved if they HAD been in a position to immediately start paying "extra money" to become debt-free?

Using your Debt Avalanche System is very easy. Your system will even allow you to pay extra every month or to make extra one-time payments. At any time, you can adjust your debt information, or payment information, and the system will automatically update all the numbers, including your debt-free date. Just access the system and follow the simple steps.

Note (a): A number of Financial Institutions have such Debt Avalanche Systems in place.

Note (b): On the RESOURCES Page here, you'll find a treasure-house of additional info / strategies / tips to help you.

DEBT- FREE LIVING - It cancels you being a "servant to the lender" ... it creates a well-deserved sense of personal pride ... it offers you a richer quality of life - worthy of YOUR very BEST effort.

Let me re-emphasize ... my (our) passionate purpose here ... is NOT to help make you WEALTHY ... it is to help make you R-I-C-H ... with peace / purpose / empowerment.

It is to truly, help you achieve success / peak financial health / enjoyment / happiness in life ... to enjoy life’s REAL treasures.

No matter how young or old you are ... if you still have a passion for life, pursuing the VIRTUAL WEALTH LIFESTYLE will prove priceless to you and those you share it with. And, our Team is here to HELP.

Naturally, we hope you will join our TEAM on this exciting journey ... called The Virtual Wealth LIFESTYLE ... because there is nothing else like it! :>)

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