How to Eliminate ALL Credit Card and Auto Debts FAST In Canada

As soon as I get this debt paid off, I'm going to save up money and do this other thing. But it never really seems to work out that way, does it? You save up a little bit of money and then all of a sudden a problem shows up and then you have to dip into that money.

Hi there, Vern Riccardi here with the Ascendant Financial team. And today I'm going to show you how you can eliminate all credit card and auto debt fast. Make sure that you stick around to the end because I'm going to show you something, some actual visuals just to get your mind thinking about how you can actually eliminate all your credit card debt and auto debt fast. Make sure you check out the playlist beside me here because we have some really great case studies and some examples of showing you how to actually crush debt and do what we refer to as a debt recapture. My colleague Sarblo Gill always says paying off debt is actually pretty easy. All you gotta do is throw a lot more money at the debt than they're asking for, right? They're gonna ask you for a minimum payment. If you throw a lot more at it, you're gonna going to eliminate the debt. It's pretty simple. The problem with that is, though, is that we always have the need for the use of money. I've heard people say that before, hey, I'm saving up money right now so that I can do a thing, accomplish an objective or, hey, yeah, as soon as I get this debt paid off, I'm going to save up money and do this other thing. But it never really seems to work out that way, does it? You save up a little bit of money and then all of a sudden a problem shows up and then you have to dip into that money and then you got to start back at zero again and then try to save up money again and then it goes back to zero. If you're eliminating debt, it's the same sort of thing. You start making all kinds of payments toward your debt and then you maybe you eliminate the debt, but then you've got no money, right, because someone else has it, someone else's bank. So all I do to eliminate debt and eliminate it fast and also create momentum on my money is, is I implement the process of becoming your own banker, the infinite banking concept. And I use a very special tool called a permanent participating whole life policy to store and warehouse my capital. Most people deposit money into a commercial bank, that's fine. They're pumping fuel into someone else's bank and making that money Work hard for that bank. What I do is I pump my money into a life insurance company that I become a co owner in because I have one of these permanent participating whole life policies. So I'm pumping energy into a business that I co own and I have a death benefit on that policy. In case anything ever happens to me, my family's going to get a lot more money out of the policy than what I put in. And they're never going to have a bad financial day as long as I'm here or after I'm gone. But let's assume I live a long, happy life. There's certain contractual guarantees within the policy contract that'll work in my favor and put the risk on the insurance company. Right, rather than with me. And one of the most important ones is that as I mentioned earlier, there's that death benefit, but there's cash value. There's cash. The insurance company's putting cash in the policy every single day that I take Aaron to my lugs. I build the policy so that the cash, or excuse me, the death benefit rises and the cash value actually has to match the total death benefit by the time the life insurer, in this example me, reaches age 100. So every day that I age, the cash is growing on a schedule, chasing that death benefit. So there's always more and more cash growing inside the policy every single day that goes by. And I have access to that cash, no questions asked, because I'm the one who owns the contract. So let me give you an example here and pardon my artistry here. All right, I just want to give you a visual of what we normally do to eliminate debt. So let's just think about the banking process for a moment. What you have to do is you have to go to work every day, right? And you work real hard to produce an income and then that income is going to flow into someone else's bank. Right? Someone else's bank. And who's that money working for when it's landing in the commercial bank? It's working for that bank, but the money just sits there. Well, the illusion is that the money sits there because you log on to your online banking and you see your balance. But we know that the bank's actually putting that money to work to grow profit for that bank. They're just reliable to give us the money when we ask for it. So what we do is we work real hard and of course the money lands in the bank account and then you get to go use that money to solve the objectives that you need. To solve whatever that might be, pay your mortgage, pay the light bill, feed the family, do all those things. And a lot of Canadians are dealing with massive amounts of debt. And what do they want to do? They want to get rid of that debt because they know it's a burden and it just keeps taking money out of their bank. And it's painful. So what do we do? Normally, of course, we're going to have some sort of a minimum payment, right? The, that we have to send to the credit card company or the.

Vehicle company, the auto financing. Right. So what happens is you now start to draw this money out to solve those objectives and to come over here and pay a little bit extra toward the balance. Right. So you keep making, you have to keep going to work. Whoops, I erased my. Erased my bank account. So you have to keep going to work so that money keeps coming in. But the problem with that is money keeps going in. You use the money, but then the money's gone. There's no money in there. There's nothing working hard for you. And maybe you're eliminating this debt here. But what happens when you run into a problem and you need money? Well, we look back over here and there's zero in there. So most people, what they do is they rely heavily on banks when they need a large amount of money to solve an objective. And guess where they wind right back up rate, buck up at the top. They keep piling up the debt. It comes down a little bit, and then they pile it up. And there isn't just. There isn't enough going around because you're working really hard for the money. And the problem is it's always leaving because you have to always continuously use money. That's banking. That's how the whole problem got created. And that's how the whole process works. And they know that. So now let me get rid of this here. What we're going to do is we're just going to change the process a little bit. What I do is I'm using an example over here with an alternate place where I store my capital. Just like I mentioned earlier, of course I'm going to earn my income. The income is going to come in here and it's going to pile up and you might have some existing savings, you might have some cash piled up somewhere else that you could use to get started, to get your policy system started. Now, I'm just using an example here of a $10,000 annual premium being deposited into my policy system. We have to get the policy started. The policy Is like acts as the bank. It's what the tool we're going to use to fulfill the banking function. You can put money in there annually, you can put money in there monthly. We just need to carve out some cash out of your either monthly cash flow or out of your savings somewhere that you have access to cash somewhere else to get started. It doesn't matter how much you get started with, it matters that you get started because the minute you start the policy, it's going to start building momentum right away. So what I have here is I'm showing the blue on the outside of the policy contract. It represents the death benefit. So God forbid you pass away. There's going to be a lot more coming out of the policy that can obviously go and eliminate our debt problem if we didn't have enough time to accomplish our objective. Okay, so that's piece number one. We're adding an extra layer of protection right away to make sure that we can achieve our objectives and take care of our family. Okay, Now I mentioned earlier in the video that there's cash value rising in the policy every single day. And I'm going to use a different shade of orange or, excuse me, green. So let's say this is our.

Our cash value. So every day that goes by, right from day one, cash value starts to accumulate in the policy and it starts to grow. Okay? So let's just imagine that all of this green in here, this is representing the cash value that's growing. Okay, Every day that goes by. Now, the way that we structure the policies is such that every year, well, we're going to be depositing our 10k. Right? When we deposit our 10k, what it does is it starts to build these blocks of death benefit. So the death benefit is actually rising as well. These death benefit blocks are called paid up additions. So every year as we capitalize the policy, the death benefit's actually rising, which means that we're increasing our legacy and we're making our money work harder for ourselves and our family. And again, God forbid we pass away. We're always going to get more out of the policy than what we put in to solve that problem. Okay, but let's imagine that we live a long healthy life. Well, this cash value has to rise. Whoops, I'm mixing up my colors here. Bear with me, gang. So this cash value has to rise every single day. And imagine what's going to happen over time. It's going to start out a little slower, but eventually it's going to get on this real steep Hockey stick curve where it's always up on the rise chasing that death benefit so that the cash value and death benefit match.

By the time the life insured reaches age 100. And we're aging every single day. So the window of time is always shrinking. So as time goes on and as we capitalize the policy, there's only going to be more and more cash acceleration in the policy because the death benefit's rising, the insurance company's promise to you is rising, but their window of time to fulfill that promise is always shrinking. So we're creating huge amounts of momentum in the policy and there's going to be a huge amount of cash that grows in the policy. Now what's beautiful about that whole thing is that you don't have to die to win. You can actually start to use this policy system to accomplish objectives while you're alive, just like you're doing with your own money today. And the banking system. So let's imagine in year one, we have access to this much cash as an example. Right. In year two, it keeps growing. Now keep in mind, it's growing and rising every day. Now here's the beauty of what's going to happen here. Let's see if we can create a visual. So what we're doing is we're putting our income into this banking system. Like always. We're still going to pay, you know, this minimum payment to keep the banker happy. Right. But what we're doing is again carving out that savings or existing cash flow, building up the policy system. And what we have the opportunity to do is this. We can actually access something called a policy loan. So now we're literally going to borrow against our cash value. We can borrow up to 90% of the total cash value anytime we ask for it. And we can do whatever it is that we need to do with that cash to achieve whatever objectives that we want to achieve. So in this example, what we're going to do is we're going to take a policy loan and we're going to use that to make a payment toward the principal of our debt. But what we did was we borrowed the cash. But guess what? So we don't have access to that cash anymore because we borrowed it. But the cash value is still growing and rising because we're not withdrawing money and interrupting the growth, we're borrowing against it. All the while it continues to grow and pile up. And any new cash that comes into the policy, we actually have access to that we can go and, and borrow more out. So now as we're eliminating the balance on this debt because we just keep taking policy loans out to eliminate more debt.

We're borrowing against this cash value and our debt is coming down. So what we're doing is we're creating momentum on our money because the cash keeps growing every day. And we're not losing out on this growth here. This just keeps going. We can access more and more. And now as the bottom debt is coming down, because we keep accessing policy loans, right? We're eliminating these, these dirty debts that are taking the money away from our family. Right? And, and we're, but we're still creating momentum on our money. So we're actually eliminating a liability while we create an asset. And if we start to eliminate the balance on our debts, what's going to happen to this minimum payment here?

The minimum payment is not going to stay the same. The minimum payment is going to come down. I know I'm kind of making a mess here, but you're getting what I'm saying. Every single time you hit a principal payment on that line of credit, on that credit card, your minimum payment is going to come down. Well, you're already used to making that minimum payment. Well, what are you going to do with that extra money? Most people will get bit by Parkinson's law and they'll spend whatever they have available to them, but you're not going to do that. You're going to be a disciplined banker and you're going to take whatever savings that you achieve from this minimum payment here and you're going to start.

Taking that money, the savings from the minimum payment. Oops, I got rid of my. My bank here or my debt. We're going to start taking the savings from the minimum payment and we're going to be a responsible banker and we're going to start paying it back to our banking system. So as we're making payments back to our banking system, we're starting to replenish the pool of cash. And all the while this cash keeps rising. So this is called, this is our policy loan balance. That policy loan balance is coming down and anything extra that we would have sent to the debt, we would send it to the policy first. And we're just recycling money through. We're just going to keep on eliminating these blocks of debt here and we're going to keep on building our cash so that we're creating momentum on our money and we're eliminating a liability while, while we build up an asset. I mean, I get that my visual here was a bit of a chicken scratch. For you. But you can kind of get the idea of what I'm talking about. We're not really doing a whole lot different. We're just making deposits, accessing capital, achieving an objective, and then depositing money right back into the policy system. Doesn't that sound like a lot like what you're doing with the banking system today? Except, like I said earlier, the problem is you're not creating any momentum on your money. You're not. That money's just being put to work for someone else's bank and you just have to keep on working really hard to pile it up. And then as soon as something shows up in life where you need to access that money, you grab that money, it interrupts the growth and then you have to start all over again. We don't have to keep starting all over again with the policy system. And the great thing about that is, yeah, it takes time to build and grow, but we can start accessing values and accomplishing objectives immediately while we're building that momentum. You're going to be here anyway. You're going to be using money and using banking 10, 15, 20 years down the road. So the time's going to go by. Twenty years down the road, that policy is going to have so much momentum on it, you keep putting the fuel in and there's going to be a lot more rocket fuel, a lot more cash coming out of that policy than what you put in. So hopefully my visual helped. Hopefully this explanation helps you at least get inspired to start learning more about the process of becoming your own banker so you can learn how to eliminate your credit card and auto debt fast. Don't forget to check out the playlist to my left. Hit the like button and ring the bell so that you can get notifications about great content that myself and my colleagues put out.