Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Tackling The Debt Cycle

22 Apr 2024 · 1 min

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Short excerpt from a Richard Canfield YouTube video explaining how people can become trapped in a recurring debt cycle: consolidating or refinancing (mortgage, credit cards) offers temporary relief but life events (car repairs, other expenses) and unresolved foundational financial issues cause debt to rebuild, undoing progress and returning borrowers to the start.

Chapters

So think about that refinancing wheel that people go on, or they get into credit card debt. They go and consolidate, and then, lo and behold, eventually the credit card debt builds up again because we had to replace the transmission and the struts on the car and all these things. Life is going to get in the way. And if we don't really get to the core of the foundational issues, we can just get stuck on that hamster wheel and never really properly get out. So a really common problem that people face is the refinancing re kicking out. Usually it's a higher amount of money in mortgage value. And then all of that headway that we started to make because we were getting more efficient with each payment, we just went backwards again to the very beginning.