Paying Your Debt The Easy Way

The wealth doesn't just lie in paying down the debt, the wealth lies in paying down the wealth and then take over the stream of payments and redirect the stream of payments back into your own system to recapture those stream of payments in your own system by taking that debt and putting into your own system. That's where the real wealth lies.

People don't come to us because they want to find a better way to pay off debt. Folks work with us because they don't just want to pay off their debt, they want to build their wealth while achieving their goals of paying off debt. Because paying off debt is easy. If you have debts today like mortgages, car payments, lines of credit, credit cards, all you got to do is just increase the payments on those debts and the debts are paid off and you will accomplish your objective. But if you follow through on that and the debts get paid off, all you've achieved is debts being paid off, nothing more than that. But if you just change one thing again, and I'm repeating myself, you just change one thing in this whole journey of paying off debt, which is to add this process, add this step, then you're not just paying off debt, you're also building wealth. And here's the reason why. Because as you start to flow money towards the policy, you will have cash accumulation, you will have cash growth. In the policy called cash value growth. You're able to borrow against your cash values to pay down these snakes and dragons or third party creditor debt. Nelson used to call them snakes and dragons. And if you do it this way, you'll see your debts are going down, but your cash values are still increasing no matter what. So you end up building an asset called cash value growth while your debts come down. And this is what we do, and this process is called debt recapture. Because the wealth doesn't just lie in paying down the debt, the debt, the wealth lies in paying down the wealth and then take over the stream of payments and redirect the stream of payments back into your own system to recapture those stream of payments in your own system by taking that debt and putting into your own system. That's where the real wealth lies. That's why it is called debt recapture. Now in this particular, for this particular case study, we're going to demonstrate a chiropractor, that's chiropractor. He had about $420,000 in consumer debt, which included two mortgages monies that he owed to some credit card companies, CRA. He was 47 years young when he got introduced to this concept. And he was in, he had about $420,000 in consumer debt, 15 debts in total. So he had a lot of debt, a lot of payments he was making to someone else's banking system. Now after discovering this process.

He wanted to get started immediately and his goal was to pay off his debt. And we asked the chiropractor, and this is what we do in most of our clients meeting, is because we want to make sure that whatever we design in terms of policy or system or your banking system is something that we can sustain on a long term basis. So we literally asked the chiropractor, he's like, hey, where do you want to get started when it comes to putting premium into your banking system? And he needed help to, to, to get that number. So we asked him, I said, so, Mr. Carol Proctor, how do you get paid? And he said, well, I get paid from patient visit. And then we asked him, hey, how much do you charge per patient visit for per patient visit? He said, you know, every patient visit to me is $50 per visit on an average. And then, and then we asked him, we said, hey, if you set aside equaling to two patient visits per day, so $50 for one patient, 50 for the other patient, so $100 per day equivalent to two patient visit, is that going to bend and break your business or your lifestyle? And his answer was no. And then we also asked him, how many days in a year are you in practice? And he said, why? I work about 200 days in a year. So $100 per day multiplied by $200. Sorry, $100 per day multiplied by 200 days in a year, that's $20,000. That's what he got started with his own family banking system. So $20,000, that's where he got started. Now the chiropractor didn't want to lose any time to get started, but the issue was he didn't have $20,000 in cash upfront to put into policy. He could have started policy on a monthly basis, but monthly policy we have to wait till the money is built up. So we have to wait at least six, seven months to start initiating policy loans to put that money to work, especially when we're recapturing that. And he don't, he didn't want to waste any time. So for the first year's premium, he actually borrowed money from someone and he borrowed about $30,000. It was a private loan. 20,000 of that was used towards premium and 10,000 was used to pay something else as a debt. So he actually borrowed the first year's premium. And then he was diligently SA $100 per day for 200 days that he was in practice for the next year's premium. And then as he kickstarted his policy, he would take policy loans to pay off debt. Now one thing I will give everybody as a heads up. So as he was going to take policy loans to reduce his debt and you're going to see his plan in a bit, he wasn't paying back any policy loans. His whole objective was to move his debt from someone else's control back into his control, which is debt in his own policy. And then he's going to start paying back the policy loans, the payments that he was making to someone else's banking system. He would redirect those payments back into his own banking system. So he didn't start paying policy loans until all his debts were paid off using policy loans. So the objective was him for him to be, you know, he didn't want to work any harder. He as a business owner, you know, he was working hard anyways, so he didn't want to work any harder. He certainly didn't want to take on any more risk to, to obtain his objective. He didn't want to change his cash flow, he wanted to work with the cash flow that he had. He didn't want to lose control over his money and certainly God forbid, if, if the unthinkable was to happen, he wanted to make sure that his family was taken care of and that was provided for him as protection. Because $20,000 when it went in policy as premium, it bought him death benefit. So that was benefit that the family would have received in case something was to happen to him. So the solution is the debt recapture process. So here's what the CARO did. So what you'll see is, you'll see time. So the green.

Row, the green highlighted row. So that's the year and then you can see the month. So first month, second month, third month, and then you can see the premium deposit. So he started with $20,000. Now the first premium that he put into the policy was borrowed. As I explained, he didn't have that money, so this money was borrowed. And the debt that he used to borrow money is also on, on this Excel sheet now you're going to see something called separate checking account. Don't worry about that. I'll explain as the, as I go through the example. So don't worry about this right now. But you can see all his debts. So debt number one, we've labeled 1, 2, 3. He's got 15 debts. We've also shown who is the debt which the first debt, for example, is with Home Depot. You can see the balance which is 2647. You can also see the monthly payment that's required to be paid. On it you can see the interest rate that he has to pay at. And then you can also see the number of months it'll take for him to pay off his debt. If all he did was take $200 per month and apply towards his debt, this Home Depot debt, and that applies to all his debts. So total debt that he has is about $420,000. That's 15 debts. So if I scroll to my right, you can see the nine debts and if I scroll to the bottom on the second page, you'll be able to see the remaining debts. So total debts were 15. Now if you see this debt debt number 13, the private loan for $30,000, this is what he had borrowed to kickstart his policy. So 20,000 of this was used to start a policy and 10,000 was used to pay another high interest debt. And then you can see his two mortgages. So total debt in quantity is 15. So his total debt balance was $420,000.

And he's making payments on those debts. Now he's using $20,000 to kickstart a banking system. So if he doesn't, if he takes that $20,000 applied towards his debt, $420,000. So if you take $420,000 divided by 20,000.

That'S about 21 years. So it'll take him 21 years to pay off the debt. If he takes his 20k applies towards debt, that's the amount of time it would take him to pay off the debt, 21 years. Now keep that in mind because he's taking $20,000 and he's flowing it through his policy. And let's see, how much time does he take to actually pay off his debt. So let's begin. So month, one, year, one, he puts in $20,000 as premium. So the moment the money goes into policy as premium, as we've talked about this, there is going to be cash accumulation and there's be cash growth on top of that immediately. What he could do was he could take a policy loan for $11,200. So again, what he can borrow as a policy loan is equal to 90% of his cash value. So if he was able to borrow 11,200 as a loan, his actual capital is 10% more than that because that's his cash value. Loan to value is 90%. So he takes 11,200 of insurance company's money while his money in the policy continues to grow no matter what. So now he's using insurance companies money. He takes that money and he eliminates the Home Depot. That eliminates the target debt. He eliminates the BMO debt and then he had a little bit extra money left to put a little dent into CIBC Visa. You can see he put a little dent into CIBC Visa. So when these debts were paid off we asked him a very important question. We said, hey Mr. Cairo Proctor. So these debts are paid off, those snakes and dragons are gone. You're making a payment of 200 bucks a month on Home Depot. You're making a $200 a month on Target. You were sending 228 per month on BMO. What do you want to do with all those payments now since these snakes and dragons are paid off? And he said well this was already in my cash flow. I had budgeted that in my cash flow to leave my family towards those snakes and dragons. What I'm going to do is I'm going to reuse this money for the purpose of recapturing my debt using this process. So if you add up this payment, this payment and this payment and whatever, he saved a little bit on CIBC because he reduced that balance also combined at 665 per month. So again like I mentioned, he's not paying back his policy loans yet. He's just laser focused on paying off the debt because he wants that peace of mind. So he took all those payments and he's setting that money aside into a separate checking account in the bank which is 665 per month. So these were monthly payments which were leaving his family. Now it's just coming back into a separate checking account. So he's very disciplined because he's laser focused to obtain his goal. So he keeps saving 665 every month because those payments were leaving his family. Now something happens. You'll see between month seven and eight something happened. His monthly saving into a separate checking account increased from 665 per month to 1720 per month. So what happened was there was a debt on his practice debt number five which had a balance of about $7,378. The payment was 1054 and in about seven months the debt just got eliminated just by virtue of him actually making those payments. So again we just asked him are you okay adding this back to the Payments that you're setting aside into separate checking account. He said exactly. That's exactly what I want to do. I want to focus on obtaining my goal. So that got added to 665. So now you can see the accumulation. So you can see the amount of money that was leaving his family permanently. Now he's just keeping that money aside in a separate checking account and adding that all to the process of debt recapture and debt elimination. So he saved up 13,255 by the end of the year in that separate checking account. And then second year comes along. So now he saved up the $100 per day for two patient visit for 200 days that he was in practice. So now he saved up the money that he's putting into policy as premium. So he puts in $20,000. And immediately right away after 30 days of putting the premium in is able to initiate a policy loan of 17,540. Now you can see something happened between year one and year two. His access to capital via policy loan increased. Why? Because the policy is becoming more efficient every year we keep increasing the death benefit in the policy which keeps increasing his cash value growth in the policy. Because by age 100 cash values and death benefit must match. And the way we design policies is your death benefit increases every year. When, when that goes up, your cash flow is become better. So now he's able to take policy loan of 17,005 40. He takes this money adds up to the money that he's already saved 13,002,55 in a separate checking account. And we create the separate checking account especially when we're working with clients on, on debt recapture cases because we don't want to commingle the money that we are setting aside when those snakes and dragons are paid off with our day to day expenses. So that's why we keep money separate. So it's in a separate checking account, it's not commingled with other day to day expenses. So we can account for that money.

On a monthly basis.

So now at the end of the two years, so he's able to take $30,000 795 to put that to work. So this from so 17,540 from policy alone 13,255 from the money that he saved, that's 30,795. So he takes that money, he eliminates his CIBC Visa card which is debt number four. He applies it towards TD bank card. Debt number six pays off the loan to CRA. Debt number seven eliminates our Royal Bank RBC card which had the balance of $12,000 and puts a little bit dent on his Sears.

Credit card and then reduces that debt to 2135. So again, all those payments which were going to the Snakes and Dragons. So Sears doesn't need $300 per month in payment anymore. Sears only needs $55. So if you take up all these payments, 7254-252500-54273, 228, 200 for this one and then 200 for that number one. So all those payments, if you add them together, imagine the amount of money that was leaving his family every month on the things that he was financing. All those debts are paid off. So he takes all that money and he's very disciplined about it and he starts to save that money into his separate checking account because he's focused, he wants to recapture his debt as soon as possible. So all Those payments are 3,625amonth. And just by being disciplined about setting that money aside every month at the end of the year, he's got 43,500 saved.

In that separate checking account. Now this is end of two years. So he's 24 months in.

And this is what he's able to free up. And he's paid off almost. How many debts is it? Nine debts out of the 15. So let's carry on. So let's go to beginning of year three. So start of month 25, he capitalizes his policy because money has to flow through some institution. He's flowing that money through his own banking system via Premium as into a participating dividend paying holder policy. And now you can see he's able to take a higher policy loan because we had three years into policy. The policy is much efficient now. So he's able to take $18,235 from his policy loan and all that money that he saved in a Separate checking account, $43,500. So combined it equals to $61,735. He immediately takes that money, eliminates the Sears card, which is debt number nine. He eliminates Scotia, which is debt number 10. He eliminates his loan on his other practice, which is debt number 11. He pays off the TD loan, he pays off the private loan that he had taken to kickstart his own policy. And then he applies a little bit balance, he reduces the balance on his debt number 14, which is one of his mortgages. So this all happened by year three, month 25. And if you add up all the Stream of payments that was leaving his family on those Snakes and Dragons. All that combined is $5,775. And he's disciplined. So he continues to save that money for a year. He set aside 69,003, 10 in a separate checking account. Now beginning of year four, month 37, he puts another deposit, $20,000. Now you can see he's almost getting out equal to what he's put in. So premium is 20k. He's able to get 19,000 as loan. He saved up 69,000 3, 10. So he adds both together. Now he's got 88,000 3, 10. And remember now he's only got two debts, the two mortgages. Everything else has been taken care of. So he takes that money and he applies it towards debt number 14, which is one of the mortgages. And then he's got another mortgage left and he reduces the balance down to 6,009, 80. And all the time he was servicing minimum payments on all these debts. So he wasn't letting anything compound either on the Snakes and Dragon loan balances. So four years in is almost his debt number 14, which is the mortgage is almost paid off. So he's got this debt left and he's still making a payment there. And then he's got his debt number 15, which with a balance of 149,740. Now if you add up all the payments which he was sending away from his family, so 5775, then you can see something happened. It increased to 6525. And the reason why, because this debt, that debt number 15, there was enough money in the separate checking. Sorry, debt number 14, there was enough money in his separate checking account that he was able to pay off this debt completely. So in about 38 months he's paid off 14 debts which included one mortgage. Now he's got another mortgage, debt number 15, and that's all he has. So now all that money which was leaving his family, now he's just setting it aside into a separate checking account like clockwork to achieve his goal. And by the end of the year he's got 71,305 available. Now what you'll see is something happened to his premium. From $20,000 per year it dropped to $8,000. And the reason why it dropped was because the policy became efficient and all he needed was $8,000 as premium to gain access to 9,003, 15 in policy loan. Now what you'll also see is he started another policy of $20,000. So he took the difference between. So this policy only needed 8. It was putting $20,000. So that's $12,000. And he added another $8,000 from his income. And he started another policy because this policy only needed $8,000. So now he's putting $28,000 per year into system of policies, $8,000 into this policy, $20,000 into the other policy. So he's able to access 9,315 from this policy and 11,190 from the other policy, because the other policy is just getting started, going through the capitalization phase, and he adds it together to what he saved into a separate checking account. And now combined he can use 91,008, 10. Now, I just want to come back to the premium on the first policy. So if you think of this like a checking account, if you put 8,000 into checking account and immediately you could turn around and access 9315 from the checking account, how many times now do you want to put this $8,000 into that checking account? My hope is, my hope is all day long and twice on Sundays for you, because this is the outcome that you're able to create from the policy. So that's why we say think long range. Don't be afraid to capitalize. Continue to flow your money as much as possible through the policies because your money has to flow. It's been flowing through the books of someone else's bank. Change the flow of money, flow it through your system, because this is the exact outcome that you will also create going forward. It only took eight to get access to 9,315. All right, so now he's got access to 91,008, 10, this, this, and this all combined. So he takes that money and he directly applies to the mortgage balance and he reduces it down to $54,070. He's still making the mortgage payment on it. And then if you add up all the stream of payments, which was leaving his family on the things that he was financing, all those payments came to 7230. So by virtue of him setting that money aside into a separate checking account, by the time he reached 57 months, he had enough money saved that he could take money from a separate checking account and just eliminate the last debt, the debt number 15.

So in about 57 months.

He was able to pay off $420,000 in consumer debt. Now he's not done yet. All he's achieved so far is debt being paid off. The next step in the process is to reflow those stream of payments back into his own system. Because the debt is now his own system. If he had no issues giving the money to someone else, why should he have any issues to flow that loan repayment back into his own system? So he's not going to steal the piece because he's practicing becoming a banker. He's following Nelson's golden rule. So he continues to accumulate some money into separate checking account. And then you can see at the end of the year he's got $35,190. And now is when he's going to start paying back his policy loans. Because throughout the process, like I mentioned, his own goal was to achieve stress free way of living. And he could only do that if he eliminated the bank. So he did a fantastic job of eliminating the bank at 57 months. Now he's just going to take all that money and start paying back his policy loans. All debts were paid off in 57 months versus the 21 years it would have taken him. If he would have taken $20,000 and applied towards $420,000 in debt, it would have taken him 21 years. But just by redoing everything and having a plan in place and working with an authorized infinite banking practitioner, he was able to achieve that in 57 months. The total premium dollars that he put into policy are 108,000. So far, the total policy loans that he took out was $86,480. To recapture and pay off all his debt, the total debt recapture was $420,000. The interest was capitalized on the policy loan because he wasn't paying any policy loans back. And at that time when he got started, the interest of the rate on policy loan was 7.5%. Now it's down to 6.2%. The total interest capitalized on policy loan was $17,141. So principal that he took out as policy loan, $86,480, interest $17,141. So total loan balance $103,621. And then he's got $7,640 as monthly cash flow, which was outflowing on snakes and dragons on all those creditors. Now he just takes that money starting 57 months and redirects it right back into his own policy to pay his loans back. And in a matter of 13.5 months, he was able to pay off all his loans. So in total from start to end, it took him about 70 months not just to pay off his debt, but also pay back the policy loans into his own system. So 70 months.

Less than what, six years he was able to achieve his goal of stress free way of living. And if you look through, if you think through, what else has he achieved at this time in addition to all this is he's got two policies now growing in cash values every single day uninterrupted. So he's built up that wealth. He's got access to that capital and cash value. He paid off all his policy loans, he can re access that capital Also he's got death benefit. He's debt free. So now he's got a lot more opportunities available for him to scale and grow. Either his chiropractic business, real estate business, anything that he wanted to spend money on. If he can do it, so can you. It's easy when you know it how and it's easy when you have someone coaching you and showing you how it can be done also for yourself. The chiropractor accomplishes objective of paying off the family debt? Absolutely yes. And did the chiropractor work any harder? Answer is no. All he did was change the process to get to the objective. Did the chiropractor ever lose control over his money? Policy is controlled and owned by the policy owner. Policy owner has access to the cash values at any time. So he didn't lose control or access to money at all. The chiropractor didn't take any risk because once the money is in the policy, it immediately accumulates cash value and it grows cash value guaranteed contractually by the insurance company tax on a tax free basis no matter what happens out in the financial entertainment world. So he didn't take on any risk flowing his money into the policy. And did the chiropractor ever change his cash flow? No, we just asked him what cash flow works with you. And that is exactly the plan that we put for him. 100 bucks per month for two patient visit equal to 200 days that he's practiced in a year. That's $20,000. That was his premium. The chiropractor changed one thing to get to his objective and that is the process. He implemented the process of becoming a banker to achieve what he wanted to achieve. He could have done it without it. But if he would have gone ahead without implementing the process, he would have accomplished the only one thing which is debt being paid off just by changing the process. He added other things in his family daily cash growth, access to cash and policy debt being paid off, having death benefit. So he build up an asset while paying off his debt. And that's all he did, and he achieved that by changing the process.