Transform Debt Into Wealth
The Power of Leverage

Transform debt into wealth whether your credit cards are maxed out or you have a huge mortgage to pay off. With a proven plan you can still get rid of all your debt in about five to seven years - and begin rapid wealth building - no need to sacrifice the things that matter most to you!

The idea of transforming debt into wealth is more common than most might suspect. Generally, people fail to acknowledge the benefits of debt to long term wealth building because social conditioning prevents them from recognizing the two main categories of debt ~ Constructive (Investment) and Destructive (Consumer).

Constructive debt can be best described as using other people's money (OPM) to build assets that are likely to appreciate and produce income over time.

One of the most popular examples of debt to wealth building is using the power of leverage to purchase investment property. Creating wealth by qualifying for and obtaining a loan to acquire investment property is the least path of resistance while on your road to wealth building.

Depending upon what part of the country entry level investment property could easily cost more than $100,000 to purchase. Since the average investor doesn't have this in a saving's account, if she does she probably wouldn't want to spend it all at once, she would pursue leverage to build an income producing portfolio. Therefore, this person would typically get a loan for most of the money, if not all of it.

This is an example of constructive debt.

Create long-term wealth by transforming debt into wealth. Beat the lenders at their own game by learning the ABCs of getting out of debt.

Destructive or consumer debt on the other hand is in my opinion, best described as using (OPM) money for consumption. People who carry destructive debt have purchased things that depreciate ~ and are "Not" likely" to increase in value over time ~ that is to say, materials that are de-valued short term. These items become worth~less. Electronic devices, clothes and cars are a few examples of things most people carry destructive debt on. It is not possible to transform this type of debt into wealth because these things inherently depreciate over time.

Credit card debt is potential financial disaster because this is where most 'Destructive' debt is accumulated. Consumer credit cards are readily available and almost anyone nowadays can get one. Since little qualification is required and the more debt a consumer carries it becomes easier to obtain new offers. The danger however is with daily compounding interest a consumer would generally pay 3-4 times what the original item is worth.

This is a poor method to use while considering transforming debt into wealth. Remember, items that depreciate over time are worth~less money in the future in comparison to the price paid in the present. Couple depreciation with interest that compounds daily against outstanding balances and you have the perfect financial storm brewing. These elements will all work against you faster than you probably realize. Add still the convenience to pay only the monthly minimum and you are chained and bound with little hope for financial freedom.

Understand firstly the fact that credit card companies are in the business of securing consistent interest payments. They're using their money to make money. They don't mind creating a situation where their money realizes consistent $200 monthly payments. This is an example of cash flow where you can learn the art of transforming debt into wealth. Your debt shows up as an asset on their balance sheets so you can do well to learn from their business practices.

Learn how to use the power of leverage in your favor and transform this insidious form of debt into wealth. You've probably heard the phrase: "Money saved is money earned". Transforming debt into wealth really is about learning how to play the "Money Game" and get out of the rat race. I have learned the quickest and easiest way to get 10% - 15% returns on my money ... was to pay off high interest credit cards. If you carry credit cards with interest rates higher than 15% you have some work to do. There are many schools of thought concerning how to do this. Transform debt into wealth by doing your own research and make the decision that is best for you.

I can only tell you how I did it. I started with my credit cards with the lowest balances. I paid as much as I could on those while only making the minimum payments on the other cards.

Once the credit card with the lowest balance was paid off ... I took that same money I developed the habit of making regular payments and applied it to the next card with the lowest balance ~ I continued until I completely wiped out the debt. What helped was the idea I was getting at least 10% return on my money by paying off those high interest cards.

Think about it, where else can you get a 15% return on your money in the short term? That motivated me to get it done. Now it's your turn. Do you want to be Debt Free in less than 10 years?

The next strategy I learned after being free from consumer debt was to purchase items on more favorable terms ~ "12 months same as cash" for an example.

This requires a change in mindset and a disciplined approach. It's important to me have my money available and accessible ... that's what is known as being 'liquid'. So rather than exhaust my liquid resources I generally use leverage to work in my favor by using the store's money.

Since most items purchased on credit cards depreciate in value most stores that sell them will make this type of payment arrangement available. Typically the store will give you a specified period of time to pay off the balance that is borrowed without charging interest fees. But watch out!!

This strategy of transforming debt into wealth can potentially backfire and work against you if you don't stay on top of things. Make sure you make your payments on time because if you fail to keep the schedule, the interest that is still accumulating will be applied to your balance and will likely be subject to some really high interest rate.

Transforming debt into wealth is the sort of game where you are on a financial playing field and your opponents, interest payments and late fees are after you. Gain a better insight after listening to the following audio series and discover how to truly leverage credit and transform debt into wealth.

Many twists, turns and pitfalls exist along your way to financial freedom. The object is to get to the end ~ pay off the debt without getting captured by yet another opponent daily-compounded-interest-fees. Stay alert! Transform debt into wealth by using the power of leverage ... money saved is truly money earned.

After you have developed the habits of becoming debt free you must go to work on changing your spending habits. Discipline your desires and wants. Most people mistakenly view wants as needs. Remember, the kinds of things which become less in value ~ depreciate ~ should not be purchased on credit unless you have the money to pay them off within a thirty day period.

Purchase items on sale and on the 'clearance' rack and you will be surprised to see the drastic "mark downs" ~ price reductions. When you're really good you can find things marked down 70% - 80% with additional 15% off the mark down price.

You might wonder why the store would do such a thing and how they make their money. Just in case you are wondering, consider this ... they've already made their money on the original inventory ~ the other guy paid it and when clearance time comes the stuff is simply taking up space and the store has become a warehouse. They really just need to get the stuff (move inventory) out of their store to make room for more profitable 'Stuff'. The cycle continues. Purchase clearance items ~ they will depreciate in value anyway ~ just wait.

These ideas are all about changing your mindset and adjusting your buying habits. For example, buy holiday decorations right after the holidays for the following year. If you have a home based business and need office supplies ... make your purchases during "back-to-school" sale promotions. Buy items that have additional mail-in rebates and don't forget to follow all the rules ~ mail in your rebate receipt ... and keep copies of what you send in the mail.

Some stores offer discounts for using their store credit cards. Go ahead and use the store card and immediately pay the balance off. * We love this one, my wife does it all the time. Use store coupons. Those $.60 and $.70 cents add up over time ... remember, money saved is money earned. These disciplines when practiced regularly will become habitual and then you will be on your way to building wealth.

There is no such thing as getting rich quick ... applying principles involves being consistent over time. Get rich slow by transforming debt into new wealth opportunities. Use these fundamental principles to your advantage ~ let them work in your favor and I promise you will be free to live a life that is worthwhile and fulfilling.

Verify the merits of these ideas on your own. When you are settled with them, teach them to someone else, and then you will be on your way to self mastery and greatness. Remember, Study ~ Practice ~ Teach.

Discover Your Life's Purpose After Transforming Debt Into Wealth