As much as Cash Call Mortgage advertises that your house is your bank, it is NOT.
This is a lender that will make short term loans at interest rates that exceed 100% per year, and when they say, “Your house is your bank” and borrow money to pay off credit cards, take a vacation or make other investments, unless you are a sophisticated investor, you have no business treating your house as a bank.
As an example, you can pay off credit cards by adding extra money to the lowest balance and get rid of them one at a time. You can switch the balance to lower rate cards. But when you borrow money against your home to pay off credit cards, you have changed your UNSECURED credit card debt to a debt secured by your home, which you can lose if you cannot make the payments.
If you cannot make the payments on your credit cards, it hurts your credit score. If you cannot make the payments on your home you can become homeless. That’s a big difference.
And none of this matters if you are living beyond your income. If that is the case, there are only two, and I mean only, TWO choices: You reduce your expenses and/or you earn more money. The order that you do this is crucial; first reduce expenses and then make more money. And I can show you how to do BOTH. But if you just make more money, you will be in a never ending cycle of just having your debts increase faster than you make more money. I lived that way for many years, and it just does not work.
If you have to borrow money to go on vacation, you need to set your savings priorities in alignment with your goals.
If you are a savvy investor and you can borrow at 4%, and invest at 7% or 8%, then go ahead. My wife and I have done that, but we also have liquid money set aside to pay off the money we borrowed if we have to. In the mean time we are earning 4% more on the money than what we are paying in interest.
If you have any questions on any of this, I am available to speak with you by phone, Zoom, Skype, or email.
As a reminder, any profits from my wealth coaching, books or programs are donated to charity. So reach out to me now.
Sincerely,
Rennie
