Seems to be quite the buzz these day's in several blogs I have come across. I think its great how we as experts in real estate and the mortgage industry talk about how we can or anyone can do this on there own and save them selves anywhere from $1500.00 to $4500.00 by talking with anyone tax advisor and financial planner or attorney.
My personal opinion is that we are missing the picture. These posts (I thought) were meant to provide useful information for our potential clients and the general public as well as the members of the all knowing mortgage and real estate community. Just because we happen to be blessed with the gift of being in the financial industry or real estate business doesn't mean that everyone has the same knowledge we do about these types of products or for that matter any idea how to implement or have the ware withal to even try to implement this strategy.
I talk with mortgage brokers, real estate agents and financial planners everyday that have not heard on these products nor have any idea how to do this.
How about if we stop trying to impress ourselves or the rest of the community with our all knowing knowledge and start providing useful information to the public!
The truth of the matter is that these programs are good for some people and not for others. Another truth is there are different options. Some require you to refinance, some don't. Some provide software other's financial coaching. The list goes on and on.
When we look at the general public (out side the mortgage industry and real estate profession of course) we see people in debt, living from pay check to pay check, refinancing every 4 years to pay off there debt. Reaching retirement strapped with personal debt and a mortgage, inadequate Social Security and retirement benefits. The sad truth is most people aren't going to spend the time to learn new financial strategies to help them get out of debt. That why the professionals are here. Who are you (who ever you are) to say: Oh that's too much to pay to learn how to eliminate your mortgage or pay off all your debt. Most of you probably have a mortgage and debt and aren't even using these strategies. Here are some interesting statistics:
1. According to the Social Security Board, 81 out of 100 people are dead or "dead broke" by the age of 65. 2.5 % are financially independent, 13-17% are still working, 56% are dependent upon someone else, and 25% are deceased. These numbers prove that the problem with debt has started young and continued through lifetimes.
2. The Census Bureau report has determined that the average American has the following allocation of income. 28% is paid toward taxes, 19% toward the household, 9% toward insurance, 2% is kept, and a staggering 42% toward interest and debt. The National savings rate has reached -1% for the first time in history.
3. According to the Bloomberg Report (March 2007), U.S. sub prime borrowers fell behind on their mortgage payments at the highest rate in four years in the fourth quarter of 2006 and foreclosures of all types rose to a record high according to the Mortgage Bankers Association. U.S. homeowners, lenders and investors may lose as much as $112.5 billion through 2014 as mortgage payments go up on adjustable-rate loans, triggering defaults and foreclosures, according to a study by mortgage-risk data provider First American CoreLogic.
4. According to the Experian National Score Index, the average consumer debt has risen 12.5% in the last year. The average for credit scores has now dipped to 674. It has been averaging 695 over the last few years. As debt increases, scores drop. As consumers get behind in payments, scores drop. Forbes.com wrote that one late payment on an auto loan will lower a consumer's credit score by an average of 98 points.
My question is this, if it is so easy why are so many people in debt? Why is it so bad for UFirst or CMG or Financial Freedom International, Inc to promote these programs and charge $1500.00 to $4500.00? Oh I forgot anyone can do this on there own, why pay someone to teach you or provide the tools to help you implement a strategy that could save you hundreds of thousands of dollars or help motivate you to learn something new that might benefit you financially. Keep you from becoming a statistic. That would be stupid!
Here's an idea; for those of you that know how to implement the mortgage acceleration strategy or are experts in debt elimination how about spending some time teaching it for free. Work one on one with some clients for about 6 months to a year monitoring there monthly expenses and developing spreadsheets for them so they can learn and track there progress. Help them establish a budget. Help keep them motivated, and don't forget you will do this for free? Right? Just send me your name and number and I will conference my next client in with you and you can teach them for free. I am sure they will appreciate your desire to teach them and perhaps change there lives forever.