Jayson Lowe explains how to borrow against whole life insurance cash value to pay off credit card debt at 18-25% interest. You keep control of the terms, avoid taxes, and lower your cost of capital without creditors involved.
Can you use high cash value life insurance to pay off debt? The answer is yes. And the second part of that answer is you should absolutely be doing that. So if you're in a position where you're carrying some form of debt, let's presume maybe it's credit card debt and your interest rate is in the high double digits, maybe it's somewhere between 18% and 25%, you've got a balance on that credit card. Make sure you're sitting down when you look at that statement you're getting every month where it informs you of how long it's going to take you in centuries to pay off that debt. Whereas when you begin accumulating cash value inside of a participating whole life insurance policy, and you can borrow against that accumulation without interrupting it on demand, on your terms, and you can borrow against it at simple interest, and you control the repayment schedule and you take the life insurance company's proceeds and you go and pay off or pay down that credit card balance, you have immediately increased your net worth and your cost of debt, your cost of capital plummets. And so not only does it help alleviate some stress, it certainly saves you money and interest, significant amount of money in interest, but it shifts the control from that creditor to you as the policy owner. And so ask yourself a fundamental question. How would you feel being in a position of total and absolute control while accelerating the repayment of your debt, while without interrupting your assets value and without triggering a taxable event?
