Recapturing debt with Infinite Banking Systems
Here in the American culture, we’re taught to finance our cars and our homes. Then, we’re told to get a few credit cards - because you need good credit – and it’s ok to buy it if you can’t afford it – but pay it off as soon as you can… and the cycle goes on.
In the end, we stand alone at the kitchen table looking over the pile of debts to pay, and scratching our heads wondering how we got in this position.
“We can’t solve problems by using the same kind of thinking we used when we created them.”
There is an abundance of strategies out there for people to get their debt paid down or under control. Grandma’s envelope system for household budgeting, for example, might be a great starter strategy for those who can’t seem to control their spending habits. Debt stacking is a great approach to getting your debt knocked down, but requires some discipline. With this approach, you make a list of all of your debts, in highest to lowest interest rate order. Then, you begin paying them down in that order, with minimum payments, and putting the extra money you were (theoretically) spending on extra payments, towards the first debt. Once that debt is paid off, you take that payment amount and add it to the second payment amount. Once the second balance is paid off, you take that amount and add it to the third, and so on. Over time, you’ve stacked your payments on other balances and accelerate getting them paid down.
One of the services we offer at Unbridled Wealth, is help you build a debt recapturing plan, utilizing the Infinite Banking Concept (IBC). The Infinite Banking Concept is best done through a properly structured dividend paying whole life insurance policy, which we help you design. Once you understand the mechanics of utilizing a whole life policy to recapture your debts, and pay them down that way, you begin to see tremendous cash value growth through the life of the policy, and tremendous freedom in your own personal finances.
Detour. A properly structured dividend paying whole life insurance policy is far different than your ‘average’ whole life policy off the street. It is not Universal Life, or Variable Universal Life, or an Annuity, or Term Life. It is not an investment product. What it is, is a way for you to build up cash value inside of a policy & have the ability to use it along the way. You have the added benefit of uninterrupted compound growth of your money inside the policy. You have the legacy benefit (death benefit). You have the ability to be your own bank instead of financing everything you do, with a traditional bank.
How much money would you save in life, if you didn’t pay interest to an outside bank?
Now, back to recapturing debt inside of a policy. If a bank was willing to gradually consolidate your outside debts, let you decide the terms of the loan repayment, guarantee you growth of the cash value that you have accumulated (even with an outstanding debt balance), offer to pay a guaranteed sum of money to a beneficiary once you pass away (loans outstanding or not), would you be inclined to use that bank? I should hope so!
This is exactly some of what a private banking system can accomplish through IBC.
Alternatively, you can pay your debts down, pay the interest to the banks, and end up with a zero dollar debt balance. That’s a great accomplishment too! But would you, if you could, want all the other benefits along with it?