The P.I.L.L. Method refers to a systematic approach to learning to read the language in which loans are written, the language of Amortization with Frontloaded Interest.
P.I.L.L. stands for:
P – Prepayment of Principal
I – Isolation of Principal Amounts
L – Leverage and
L – Liquidity
With the PILL Method individuals can learn to Read, Interpret, Plan and Implement (RIPI) a course of actions that will both, reduce the time to pay off amortized loans, and cancel interest by very significant amounts!
As an example 30-year mortgages can now be eliminated in an average of 10 to 12 years. This is accomplished by using a system unique to the PILL Method that instructs our students on how to eliminate 75% of their scheduled interest payments! All without refinancing, the payments remain the same, and with little to no increase to the monthly budget!
Once you know how to read loan amortization for yourself, student loans can be paid off in 5 to 7 years, business loans in 7 to 9 years and the mortgages on church buildings are wiped out in 5 to 7 years without extra giving by the members! This bears repeating…all this is accomplished without refinancing, your payments remain the same and there is little to no change to your monthly budget!
When lenders are trusted to read and interpret a loan for customers the institution that profits from that loan develops a repayment plan and the best way to implement that plan. Do you really believe that this course of action is in the best interest of the borrower?
Another one of the many benefits of learning to read frontloaded amortization for yourself is acquiring the ability to interpret what is really happening to us when we are sorely misled by products developed by the lending industry. Some of those products include refinancing your loan, offering different terms for the same loan, i.e. 15-year or 30-year terms. Offering different interest rates for the same loan, i.e. offering, “to let you buy down the rate” paying a fee for a lower interest rate, and the infamous by-weekly payment plan.
Here is an important question we need to learn to ask ourselves, “If I am saving money…who’s losing it? If your answer is the lending institution, please think again!
One of the most successful marketing ploys is the term known as APR or Annual Percentage Rate. Because there is nothing about it that gives us a clue as to how grossly expensive frontloaded amortization really is. To give you an idea a $200,000 loan at 3% for a 30-year term yields a total interest cost of $103,000! That is 51% percent of the principal borrowed. By the same token a 4% loan equals 71% in scheduled interest payments, a 5% loan hauls in interests payments of 93% of the principal borrowed and a 6% loan allows the lending institutions to legally abuse borrowers for 115% of the principle borrowed in interest payments!
Through the PILL Method’s unique blend of education and cutting edge technology… what once was considered an implement of financial violence, the amortized loan with frontloaded interest, can now be manipulated to serve the borrower and become an unwitting accomplice in building consumer wealth!
The PILL Method is a systematic approach to learning how to read and understand the language in which amortized loans are written!
Copyright © 2010 by Donald Daniel
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