The banks have so much control over you and your life. You really have to fight to reduce your dependence on the bank as a source of funds. It's just too easy to go along.They make it easy to get into debt.
The banks' focus is to make a profit for their shareholders. The banks' marketing strategy is to ensure that the householder has the maximum level of loans, which can be repaid consistently, to maximize profits. Lets look at the level of profitability of bank loans.
Draw up a list of all the loans, mortgages, credit cards, car loans, store cards. Write down 5 columns across the page with the following headings.
Is this you?
What you have to know that would take away the power of the banks, and what the banks don't want you to know
It's this. A well organized mortgage home loan can allow the householder to self fund their personal loan and credit card requirements normally sourced from the banks. Anyone can do it and the result is the same for all people. The banks' fear is they will only "get" the low profit home loan and miss out on all the normal profit. See table above.
When you start seeing a mortgage as wealth creation you alter your perception to wealth creation and your dependence on the bank. How can that happen? Its all about making additional payments into your mortgage on a consistent basis. Contact a mortgage broker and ask to see the software and calculators that can demonstrate this.
A surplus of $500 - $1000 a month can have a huge impact on the mortgage balances. How can these surpluses be created? The simplest and least intrusive method is to debt consolidate all old debt with very high interest rates, replaced by new debt with low interest rates. This will create a mortgage consolidated surplus. Use this consolidated debt surplus to create wealth by putting it into the mortgage.
How it works
In 12 months you would have a redraw balance in the mortgage of $12,336. Would this take care of most of the issues that come up which would normally require credit cards and personal loans? In 24 months the redraw balance is $26,314. Now you are heading to financial independence from the banks.
A determination to break the cycle and patience to build your cash balances before you start spending is the key. Just knowing gives you the motivation to get to the redraw cash balance to gain the confidence to move forward to real wealth.
You now have the facts to plan moving forward. So don't talk yourself out of contacting a mortgage broker. Sitting and doing nothing only increases the stress and anxiety, not a good option
Whether you are in a committed relationship or are a happy single person, you should make it a top priority to understand your... read more
In a financial environment where everything seems to be getting more and more complex, it is essential that you anchor your own... read more
Personal Loans to help Australians in need: FSO
Small business loans to help Aussie businesses through tough times