| There is a system I learned about some years back | | | | 4. Once this second debt is fully paid, take the next |
| that I thought was quite brilliant. It is a way to pay your | | | | one that can be fully paid the soonest and in addition |
| debts by optimally leveraging the funds you are using | | | | to the funds you have already been paying toward |
| to pay the debts. | | | | that debt use the extra funds from the first two |
| This is how it goes. | | | | now-paid debts to pay this third debt. |
| 1. Continue to pay all debts as you have been doing. | | | | 5. Continue like this until all that is left is your mortgage |
| 2. Take the debt that you can complete paying the | | | | debt. Meanwhile, set up a 'Mortgage Checking |
| soonest and focus on that one. If possible, choose a | | | | Account' or an ALL IN ONE account. In Canada, |
| high-interest consumer debt, as those interest | | | | Canadian Tire Financial has such an account. In |
| payments are detracting from your future and net | | | | Canada and the U.S., Manulife has it and the account is |
| worth. Pay extra on it if possible and get it paid | | | | called Manulife One. These are easily found by Internet |
| completely as soon as possible. | | | | search on Google. |
| That will give you some extra cash every month as | | | | 6. Once your last debt (besides your mortgage) has |
| you will no longer be paying that debt. Most people | | | | been paid, put ALL the funds that have been going |
| would now go and spend that money on something | | | | towards all these debts toward your mortgage to get |
| else BUT DO NOT REALLOCATE THOSE FUNDS | | | | the principal paid down fast. |
| FOR ANYTHING ELSE. These funds give us the | | | | This is in addition to setting up a mortgage checking |
| secret to this system. | | | | account or All-in-One Account as above. |
| 3. Choose the next debt that you can fully pay as | | | | This will obliterate your debts (including your mortgage) |
| rapidly as possible. Now use the extra monthly funds | | | | in a fraction of the time it would have otherwise taken, |
| that you have freed up in #2 above and use these to | | | | will save you tens or hundreds of thousands of dollars |
| reduce this next debt until it is fully paid. This is in | | | | in interest over the long run and gives you a much |
| addition to the funds that you have already allocated | | | | better shot at getting wealthy. |
| monthly to pay this second debt. | | | | |