How To Start Paying Off Debt In Canada

So that you can recapture your debt the most effective way. And so having a coach who can help you with that and to guide you through those questions that you need to ask wherever you, wherever that debt is held, so that you can minimize the amount that you're paying to somebody else and increase the amount that you're paying into your system.

How to start paying off your debt. Something that is, I'm sure very relevant to a lot of people watching this video is how do I start paying off my debt? What we're going to talk about a very different approach to perhaps one you might have come across before. Because paying off our debt and ending with zero isn't really what we want to achieve. We want to end up with something as well. I'm here with my fantastic colleague Roman Pushkar. I'm Liz Lamonde and we're going to talk about a really different approach about how to pay off your debt. One thing that we really need to understand is that when we pay off our debt, it's great to have the debt paid off, but if we're left with nothing and no money in our bank account, then we haven't really gone forward very far and we're just back at zero. So what we're doing in our approach is we're creating an approach where you're building an asset at the same time as you're still paying off the debt. Now, it might take you a little bit longer, but you are going to get an asset at the end. So what's the first thing, Roman, that you think would be really helpful for someone that they need to have if they're going to be paying off that debt?

The very first thing you need to realize is that you are already paying to a bank when you're paying off a debt. And you just need to change the address of, of the cash flow, right? So every single dollar that you pay into a bank is leaving your family forever and you're not getting the power of this money back. And this money could have compounded for yourself and all the energy for this money could have been used for yourself first and then used to pay off this debt. So instead of just saying that we have to pay off debt as quickly as possible, I realized for myself that it is much more beneficial to own a debt first. So I should own my deb debt, not a bank. So when banker owns my debt, in an essence, he owns a cash flow stream of payments for myself and this is an asset for him. In order for me to take advantage of my debt, I Have to own it first and then paying it off and having an asset.

The thing that would be really helpful, I think, to start is to have someone who's going to coach you through this process. So having somebody who can guide you on the best way to build this process for you is really important because it's not going to happen overnight. You're going to need need to have a strategy and to have an awareness that you need a debt recapture plan because there are different types of debt. So you might, it might be credit card debt, it could be student loan debt, it could be.

Any array of things. And those debts are often structured very differently. So some could be amortized, some could be simple interest. And the way that that interest is being required to be paid back could vary across the debt as well as the rates that you're paying on each of those debts, as well as whether you get a discount or a benefit or reduction in your monthly payment by paying a lump sum off that debt. So all of that information is really important to understand so that you can create a debt restructure plan so that you can recapture your debt the most effective way. And so having a coach who can help you with that and to guide you through those questions that you need to ask wherever you, wherever that debt is held, so that you can minimize the amount that you're paying to somebody else and increase the amount that you're paying into your system so that you can recapture that debt more effectively and more efficiently.

Liz, you're right about having a coach and coach will help you to create a debt recapture plan. And also you may find yourself sending too much money to bank even more than bank is calling for. And this is not the right approach. And your coach is going to help you see how you can send as little money to bank possible in order to hold to your money and start your own banking system.

First, the really important thing to understand and what we're saying here is it's not that we're saying to not make your repayments, it's important that you make your minimum repayments on your debt. What we're saying is that there may not be an advantage to paying over and above the minimum required to pay off that debt. So it's about looking to see what is the minimum required. And if you're paying more than the minimum required, is there a more effective way to use that money that can come back into your own system rather than going to somebody else's?

Also, the next step will be once your coach helped you to free up Some cash. The next step will be create your own bank and put all of that cash that is freed up work for you. And then once your money start growing from there you can take policy loans. And for that we use participating dividend paying whole life insurance policy. It's a private contract between yourself and insurance company where your money grow every single day. And you also participate in whole life policy dividends, which insurance company is going to share with you as a co owner of the insurance company. So once your cash value builds up, you can use that cash value to actually recapture the debt from a bank. So basically you will be taking out policy loans and buying chunks of money from your bank. So this way your debt will be held in your own system, but at the same time your cash value will be growing every single day, no matter what.

If you'd like to learn more about having a dividend paying whole life participating insurance policy, please click on the videos that are appearing beside so that you can learn how to create your own banking system. Once you own your debt, it's really important that you continue to pay back into your system. So you will have freed yourself of the restrictions of other people's terms of paying back debt, which will feel fantastic. But it's important that you don't rob from yourself. It's important that you continue to pay back into your own system. Because as you do that, you're going to build up your capacity to then go and do something way more interesting with that money, and that is to go and create your own assets. So whatever that is that intrigues you, to go and invest in and do something else with that money, so that you can continue to grow wealth from your family, so that you have that money that you can use and continue to grow wealth for your family and your future. The important part around that is to understand that this way we end up with a growing asset, liquid capital available for opportunities in the future, as opposed to all of that money just having left us forever and never being able to do anything else with that money again. So we've recaptured the debt, we've replenished our own system, and now we have this asset that we can go and use to create more wealth and generate passive income for us, for ourselves and for our future in terms of what else we want to be doing with that cash, and so that we're getting ourselves out of that debt cycle, not just in the short term, but in the longer term as well.

Be the banker who pays back to your system all the policy loans that you take otherwise your policy, the loan will be compounding against you. Never steal the piece from your own system. Like Arnold Sanash described this process in his book Becoming your own Banker, you have to pay back the policy loans and create the system that will help you access more cash in the future. As soon as you've paid back all of those policy loans and completely canceled the debt, you can access much more.

Cash value and use it. Like Liz mentioned, use it for enjoying things in life, purchasing cars, purchasing real estate investments, and anything else that you are doing currently with money.

If you'd like to learn more about how you can become your own banker and take back control in your life, please click on the videos. Besides.