How to Pay Off Debt Using Other People’s Money

The whole how to pay off debt discussion has veered off course and most experts sharing advice for paying off debt are leading you down a dead end road.  Seriously, if you had the option of paying down your accumulated debts yourself (conventional advice) or allowing someone else to pay it down (smarter advice), which would you choose?  For your sake, I hope you are the unconventional type.

How to Pay Off DebtWe’ve seen that the traditional advice for how to pay off debt by using your paycheck to pay off your mortgage, eliminate credit card balances and car payments, and accumulate savings in order to create financial security just doesn’t work.  Instead of security, the majority of Americans are undergoing financial chaos.  House values have dropped.  Safe investments and saving rates are not keeping up with inflation.  401ks and pensions are worth pennies on the dollar.  It is crazy to continue down this same debt relief and retirement path that is leading so many folks to the edge of a cliff.

Let me say one thing before we move forward.  In no way am I diminishing the fact that the traditional “Dave Ramsey” or “Suze Orman” methods of eliminating debt have helped plenty of folks out there.  Congratulations goes out to those people for taking a positive step towards financial independence!  But I also want to warn these folks against falling into the accumulation mindset that has left so many people’s 401ks, savings and retirement dreams in shambles.  And I want everyone to know that there is a much better way to eliminate debt and to achieve financial freedom.

My plan for how to pay off debt starts with being proactive with your financial future.  Don’t just hand your money over to a financial advisor and hope this person will make you wealthy.  Instead, begin investing your money in cash flowing assets.  Start with rental real estate investments.  When you own an asset that delivers passive income each month, you are on the right path towards not only eliminating debt but also to achieving financial independence.

Next, let’s automate your debt elimination plan.  Start by setting up a special “debt payoff” bank account.  Then, have the cash flow from your rental properties automatically deposited into this account.  Finally, create monthly drafts to automatically pay down your debts from this “debt payoff” account.  By automating the process, you don’t have to worry about missing a payment or using this money for anything else.

Here are three benefits of this plan for how to pay off debt that are not found in traditional methods for eliminating debt.  First, instead of money coming out of your pocket, someone else – your tenants – are paying down your debt.  And guess what, they are also paying down the mortgage on your rental property and helping you build equity that you can use to secure more cash flow real estate investments.  Secondly, when you have eliminated your credit card debt and other debts, you still have cash flowing assets putting money in your pocket each and every month.  And finally – perhaps the biggest benefit of all – this plan takes you down a road that leads to financial freedom.  I think that’s a much better destination than the edge of a cliff.  Don’t you?

If this all makes sense to you, but you don’t know where to begin… I can show you exactly how I did it here, or I can do it for you here.

Speak Your Mind