We have a natural inclination to find the best deal and pay the least amount of money for the highest quality goods we can find. But the rules we have been given to accomplish this purpose with our loans are set up to make lenders record profits at our expense. The rules we have be given are disguised as money savers when in actuality they are stealing our children’s inheritance! This is what we at the PILL Method refer to as Financial Violence. And the so called money gurus are experts in applying these violent rules because this is how they have been educated as well!
There are two sets of rules… there are rules for bankers and lenders and rules for borrowers. Practically everything we have been taught and practically everything we practice to manage our finances is purposely designed by the banking establishment to make it harder and more expensive to pay off a loan!
The PILL Method seeks to help you unlearn what you have been conditioned to think and practice when it comes to loan repayment which is based on the antiquated Debt Roll-Down Theory. Debt Roll-Down Theory fixes your concentration and your efforts on how much money you make and how quickly you can pay off the principal of the loan by adding principal prepayments to your minimum loan payment each month. This is actually the second worst thing you can do. The worst thing you can do, of course, is just paying the minimum payment for the entire term of your loan.
We are also conditioned to be fixated on getting the lowest interest rate possible and sometimes the shortest term possible, both of these strategies, believe it or not, work against the consumer in paying off a loan in the most efficient manner possible.
The PILL Method teaches Interest Cancellation Theory, and Computer Aided Financial Optimization (CAFO). Only with our methods can you save 10’s even 100’s of thousands of dollars more in interest than you could ever save on your own and pay off your loans in 1/3 the time with little to no adjustment to your budget!
While all other debt reduction programs have you concentrating on interest rates, how much money you make and how quickly you can pay off your loan by paying extra every month on principal over and above your minimum payment, where we have you focus is on the entire interest cost of your loans and how you can eliminate 75% of the cost by using your current budget. By learning to read an amortization schedule using the PILL Method Interest Cancellation Theory and incorporating our Computer Aided Financial Optimization system, you can now use front loaded interest, that amortization creates, to your advantage.
Front loaded interest is what results when the amortization algorithm, most commonly used by lending institutions around the world, is used to calculate the interest portion of each monthly payment. The interest percentage of an amortized loan payment can be as high as 75% to 83% of your monthly minimum loan payment.
Here are some of the amazing things you will learn in our seminar.
- Do not try to understand what we teach about Interest Cancellation Theory with a Debt Roll-Down Theory mindset. This is a true paradigm shift!
- How to read an amortization schedule is not taught at any level of financial education. It is important to determine the exact month and day you choose, the exact amount of money you use, which account the money comes from and which account the money is applied to, in accelerating the payoff of your loans to save the most amount of interest and to eliminate the most time from your loans.
- The interest rate you are quoted is misleading, it is not the interest rate you end up paying.
- Interest cost is more important than interest rate in loan repayment!
- People with perfect credit often pay a higher percentage of interest than people who take out payday loans and use rent to own.
- Lowering your interest rate and or Refinancing most likely will make it more difficult and more expensive to pay off your loan.
- 30 year loans are superior to 15 year loans.
- Payoff all your loans in an average of 10 to 12 years without refinancing, your monthly payment stays the same and with little to no change to your budget!
- Never put a large down payment on a loan…that is a real money waster!
- An interest only loan is actually a great loan!
- Never ever pay cash for your house or car if you can help it!
- Credit cards are better to use than debit cards by far!
Copyright © 2010 by Donald Daniel
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