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comfortable monthly payment.
COMMON RESULT : People tend to acquire additional debt after consolidation so that the old debt cycle
resurfaces. The reason these payments are so comfortable and low is because they are less than the interest
payment. Principal never gets paid down, and the process is endless. Few of these programs are helping you;
they’re helping themselves by negotiating with, and paying off, your debtors at a discount. Then they pack all
your debt in one simple payment that takes twice as long to pay off and ends up costing you more in the long
run. In effect, people who lump their debt by refinancing or consolidating are still paying cold hard cash for
products and services some 30 years after they were purchased. Those items, most likely, are long gone, but
financially not forgotten.

Bankruptcy

STRATEGY : File Chapter 7 , personal financial dissolution or liquidation bankruptcy, or Chapter 13 , personal
financial reorganization or wage-earner bankruptcy. Any expert in the field of personal finance will tell you
that this should not even be considered an option.
COMMON RESULT : First, ask anyone who’s done it; they probably wish they hadn’t. Declaring bankruptcy can
seriously disrupt your life, ruin your credit, and taint your reputation, and although you can recover, it will
take years. Additionally, it doesn’t free you from taxes, which carry substantial penalties and interest. The
worst-case scenarios occur when people feel overwhelmed in the moment, because of a series of personal and
business malfunctions, declare bankruptcy, only to reemerge two years later with personal and business
triumphs and a capacity to get out of the debt. For these people, the ding on the credit excludes them from
many lucrative opportunities and wealth building is delayed yet again. If you are contemplating bankruptcy, I
can’t urge you enough to fully consider all the other options of debt elimination first, study all the facts before
filing, and consult a lawyer who specializes in this field—but not one who has any incentive to help you file.
You have to live with the consequences for years, and in most cases—in almost all of the cases I have ever
seen—bankruptcy is unnecessary. Don’t do it.

Credit Repair
STRATEGY : Credit repair companies fix your bad credit.
COMMON RESULT : This can be wonderful, if you deal with a credible repair company. Many legitimate
organizations run great programs. But several have surfaced in the past few years that are shady and ruthless.
They take your money up front, cost you thousands of dollars, and don’t fix your credit. Make sure you get
solid references from people you know and trust on any credit repair company, and be wary of online
companies that don’t have an actual bricks-and-mortar office.

A Five-Step Strategy for Getting Out of Debt
Most people with debt problems are so caught up in their Lifestyle Cycle or their debt juggling that they can’t
imagine finding a positive solution that will enable them to build wealth. Many would be so grateful to end the pain
and panic of debt that they don’t think much further than that one issue. Chuck Wallace had made the decision to
remove himself emotionally from his debt and the reasons he got into it. For him this became, as it should for you, a
pure business venture, a matter of simply applying dollars and cents to abolish debt. Committed to putting the debt
plan in place, Chuck had relinquished the idea that he was too far in and only a windfall could save him. Chuck also
understood that it takes longer to get out of debt than it does to get into it; but since, as he started to get out of debt,
he was also creating wealth, he didn’t feel that he was losing any time making himself a millionaire.
I know for a fact that because you want to, you can and will be able to end your role as a debtor and become a
lender. By diligently employing basic debt elimination measures, you can get out of the debt cycle within three to
seven years and at the same time start to build your Wealth Cycle. It is key to understand that these processes are
simultaneous. The following Five-Step Debt Elimination Plan is what we use for all of our clients. If you have debt
it will help you begin to get out of that debt, as well as into the habit of the Wealth Account Priority Payment. As
you move forward in this process you will note that what makes this different from the other debt elimination
processes is that this approach allows you to live a normal life while you eliminate your bad debt. I’ve actually seen
books that make you question why you need to buy any new clothes for a year. I don’t know about you, but that
doesn’t work for me. If you personally do not have debt, you may know many others who do, and by helping them