The conventional financial wisdom has placed millions of American households in an untenable position. After taking out income tax and payroll deductions, health insurance premiums, and contributions to tax-qualified retirement accounts, the average employee has little left. Thus to buy a car or just keep up with daily living entices him to turn to credit card companies and other outside lenders.
One way of understanding IBC is that it allows you to “own your debt.” Specifically, you build up enough cash value in one or more whole life policies so that you can take out policy loans large enough to knock out what you owe to outside lenders. In this meetup, we will focuse on credit card debt because it is the most obvious, but the principle applies more generally.
Besides looking at the specific numbers (APRs on credit card balances, the volatility of the stock market, etc.) the qualitative benefit of “owning your debt” is the peace of mind it yields. By collapsing your outside debts—which are often collateralized on your assets such as a car or house—and bringing them within one or more whole life policies, you suddenly buy yourself a whole lifetime to plan your financial strategy. You no longer have someone sending you threatening letters, making nagging phone calls, or repossessing your car, if you get laid off or have other financial hardships.
Especially in this awful economy, the psychological benefit of owning your debt should not be underrated.
Money Financial Freedom Real Estate Investors
