Secrets to Eliminating Debt


I would like share with you a timeless secrets to eliminating debt that is mathematical guaranteed to work. Years ago I use to teach on debt management course called, “Debt-Free & Prosperous Living”  by John M. Cummuta. I have used this system myself.  There is nothing like the freedom that comes with knowing that you work because you want to and not because you have to.  I must be honest, I am using the program again because of some circumstances I elected to be in.  However, just like before I have my eyes on my debt freedom date.

Thankless Job!

To be frank,  teaching people to get out of debt was really a thankless job and that is why I don’t do it now. However, please note the principles are priceless – valued treasures! What frustrated me was the that the average person wanted the easy way out. The way of NO sacrifice on their part at all. It was as if they wanted me to look in my crystal ball and give them that evening’s lotto numbers so they could hit it big.

The Bearer of Bad News!

Instead I offered advice such as: cut down on the cable features, the number of times they ate out, entertain cheaper cell phone packages, consider packing lunches, reduce the number of salon visits, etc.  One of my clients actually said to me, “What else you got?”

Behind Close Doors

The debt elimination program that I taught was for everyone who had debt – that would probably be 99% of us.    Some people put their noses up and said,  “It’s for those people over there. I don’t need the program because I am paying my bills.” The truth is they didn’t want anyone peeking into their underwear drawer.  Many people put up good fronts, but behind closed doors their finances were a mess.

In Debt Up to My Eyeballs

My largest client was a couple who total income exceeded half a million dollars a year.  Both the husband and wife had high powered jobs and had no children.  They lived in a beautiful and expensively furnished home in a nice gated community. They had two large boats and expensive foreign cars. Outside, looking in, they looked like they had it going on, but inside they were in debt to their eyeballs.  Everything they had purchased was on credit.  They had to even use credit to pay for weekly groceries.

Until I met this client, I didn’t realize you could take out  a third mortgage on the home you were living in.  I introduced a strategy and plan to assist getting them out of debt. For me, the worst part was waiting for them to collect all their bills.  Once I got it, I ran their profile and printed out their debt-payoff plan.  They were both excited with the results.  They worked together as a team to get completely out of debt.

The Debt Snowball Effect Mathematically GUARANTEED to Work!

snowballThe secret I used in helping people get out of debt was a strategy called the Debt Snowball Effect.  This formula is mathematically guaranteed to work. The idea is that if you were at the top of a mountain and you made a snowball and rolled it down the mountain, with every roll it will gather more and more snow (like an avalanche) thus getting bigger and bigger.

It is the same approach to paying off debt.  We take one bill, pay that bill off and take whatever you were paying on the previous bill ADD that same amount to your next bill and so on.  The man on the video explains it fairly well.  Don’t worry you do not have to do this by hand.  There are software packages that do this for you.

Dave Ramsey (financial guru) swears by this system, but his system also recommends finding at least $200 minimum per month to accelerate this plan of attack.  We know this strategy as finding an accelerator margin.  It does speed up your progress for a quick success, but is not mandatory.

Some sites that may be helpful include:

  1. Free debt-freedom calculators provided by Joseph Sangl of I Was Broke But Now I’m Not
  2. Debt-Free Software provided by John Cummuta of Turning Debt into Wealth – $59
  3. Debt-Free Software provided by Insight Software Solutions – $29
  4. Financial Peace University provided by Dave Ramsey – $129/$159 (online/home study)

Following a monthly plan of attack is the best way to go and to have success. These sites offer debt calculators and software packages that provide tremendous flexibility in assisting you in staying focused with your debt elimination plan. They will let you know the month and year you will be completely debt-free.  In addition, these are same type of software packages consumer credit and other credit repair companies use.  Now you can use them yourself in the privacy of your own home and no one needs to know.

As we begin the new year, make a commitment to arresting some of that debt especially, if you are like me and perhaps others who may have created some debt purchasing all those Christmas gifts!

Please note: I reserve the right to delete comments that are offensive or off-topic.

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