When money is created by the banks or the fed it is created by i

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I am going to give you the long answer, then talk to you about debt consolidation. First, we have to start by talking about money, and what money is. Once you understand that then we can go into debt and how to work that debt out.

In our system of finance money is debt.Meaning that is backed by nothing of value.When money is created by the banks or the fed it is created by issuing a bond (debt) or a contractual promisary note (debt)

Therefore you have to keep that foremost in your mind when working with money.

There are two types of debt

1. Self liquidating debt or good debt: can pay itself back. because it is purchasing real assets that generate cash flow.

2. Non-self liquidating debt or bad debt: cannot pay itself back. because what was purchased was not a cash flow generating asset or a true asset. This is the type of debt that the majority of Americans take on purchasing items on credit that they think are assets.

Debt consolidation will only add to your current probleems. A debt consolidation loan will have interest charges atttached to in any where from 7% to 12% depending on your credit score. It will give you one payment instead of 2 or 3 payments but it will leeave you in debt as you work to pay the interest down. That is the problem

I suggest stacking your debt, so that you can get to the interest of the debt payed off sooner and then begin working on the principle.

Debt Stacking

Let’s say that you have a credit card that you just paid off and the monthly payment was 50.00. The next debt that you wish to payoff is a car payment, which has a monthly payment of 300.00. You would take the 50.00 that was going to the credit card and add it to the car payment, so this month you would send a payment of 350.00. Now when the car is paid off you may want to payoff the mortgage so you would take the 350.00 that was going to the car payment and add it to the mortgage payment. Let say that the mortgage payment is 750.00 add the 350.00 to it. So you send in a payment of 1100.00 to the mortgage company. Remember you are paying no more then you started with. This is called Debt Stacking.

Now what you cannot do is to keep making new credit card purchases or taking on more bad debt by purchasing useless consumer products that have no real value.

this can get you out of debt in half the time.

I wish you luck, and I am very interested to know how things go for you
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