In July of 2007 I resigned from my career of 17 years as a firefighter/EMT with 8 years to go to retirement to pursue this idea of telling consumers the truth of how we are all victims of Financial Violence and that we are paying 75% more interest than we need to. Because of my decision I will not receive a pension for my years of service as a firefighter…this is how much I believe in this mission to educate the public on how to read an amortization schedule and realize that the current methods to accelerate the payoff of loans is based on the antiquated Debt Roll-Down Theory. Debt Roll-Down Theory is promoted by the current financial establishment as the premier way to eliminate debt quickly. This is the second worst thing anyone can do to payoff debt!
I have discovered that Interest Cancellation Theory along with Computer Aided Financial Optimization (CAFO) is many times more powerful than Debt Roll-Down Theory and will eliminate many more years from the consumer’s loans and save 10’s of thousands of dollars more in scheduled amortized interest, utilizing the same budget!
Is it possible that a computer can be programmed to look at all the ways I can apply the use of my finances and weigh all the outcomes and can determine the best and highest use of my money?
Is it possible that a computer can be programmed to consider all of my opportunity costs simultaneously to make sure that at all times I am getting the highest benefit for every dollar that I spend and that same computer can be programmed to give me step by step instructions as to how to apply my funds in the most efficient way possible so that I can reach a particular financial goal the fastest and most economical way possible? Faster and more economical than the human mind can figure out on its own?
Just considering the idea of factorial math alone is a huge undertaking. If I have just 10 variables per loan to consider there are over 3,000,000 different ways to configure using my money and only One of those ways is optimum!
The first Law of Optimization states: You can not optimize what you can not measure!
The PILL Method here and now claims that there is no other way currently available to consumers to payoff debt faster and with less overall cost than by using our financial Robot and following it’s recommendations.
If our explanation is not convincing enough then we invite any and everyone to try to come up with a plan to beat our robot to zero debt faster and with a lessor overall opportunity cost. We will prove to anyone who takes up the challenge that the PILL Method’s Interest Cancelation Theory and Computer Aided Financial Optimization will beat any other method to zero debt with the lowest opportunity cost possible. It will also be proven that the challenging method will be so much more expensive to operate that the extra interest expense will pay for our robot several times over.
Before we even start the challenge maybe you should try answering these questions first:
- Do you know how much of your discretionary income you can dedicate to accelerated debt reduction each month?
- Can you use that amount of money towards your debt every month until you are paid to zero? 10 years is 120 payments without missing a prepayment!
- Do you know how much interest you actually save when you make a prepayment to principal?
- Do you know how much time i.e. the number of scheduled payments you are eliminating with each prepayment?
- When you have an unexpected expense do you know how that would impact your currently scheduled prepayment. And would you know exactly what to do to get back on track in the least amount of time with the least amount of money?
- Do you know how much is too much money to put towards debt acceleration when you consider the law of diminishing return and how much of that money should be used to put into an investment to achieve proper allocation of your funds so you do not fall victim to opportunity cost lost?
- Do you know how much money is too little to put towards prepayment and how much interest you failed to cancel by applying too little money?
- Do you know exactly what order to pay off your debts and when to switch your focus on which debt to prepay next, as your expenses change each month and as the principal balance is reduced?
- Do you know when you should apply prepayments to two or more debts in a particular month to achieve optimum interest cancellation? And do you know how your money should be divided between two or more debts in a single month to achieve optimum interest cancellation?
- Do you know how much extra interest you are paying on your loans when you use money to purchase consumer goods or services that could have gone towards accelerated debt reduction?
- Do you know how much extra time you are adding to the payoff of your loans when you purchase consumer goods or services with funds that could have been used to accelerate the payoff of your debt?
— Don Daniel
Copyright © 2010 by Donald Daniel
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