Page 16 - Best Magazine Winter 2017

BECOME DEBT FREE
A TYPICAL STORY
John's interest payments reduced to $0
Pretending your financial problems don't exist only makes things worse.
John’s financial troubles started after losing his job for about six months. More money was going out than coming in.
John was relying on credit cards, lines of credit and overdraft to pay for his needs: Rent, groceries, transportation, phone, etc..
Debt inflated from an initial $12,000 to $38,000 in two years. He was paying $800 a month just in interest. Even paying back $1,000 a month, it would take him over 15 years to pay off the debt.
John came to see us for help. We negotiated with John’s creditors to stop charging him interest.
The interest payments per month went from $800 to $0 (yes, zero).
At that point, all his payments went to principal instead of interest.
The principal was reduced from $38,000 to $14,400. He paid the total amount of his debt in 2 and half years.
Once you begin spending more than what you're taking in, it’s when you have financial difficulty; not when you've exhausted the balances on your credit cards.
Imagine what you can do with an extra $1,000 dollars a month. Just think of all the goals you want to achieve.
Acting early is the best strategy. If more than 20 per cent of your take home pay is going towards consumer debt, like credit cards or lines-of-credit, then you are headed towards financial trouble and should get advice now.
Morataya & Associates can negotiate with your creditors to reduce your debt.
BY MARIO MORATAYA
ECONOMÍA Y FINANZAS
16 THE BEST MAGAZINE WINTER 2017 - 2018
ECONOMY AND FINANCE
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