How to be Debt Free in 7 to 9 years - Debt Free or Cash Poor

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• published: 07 Oct 2016
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"37 years of teaching How to be totally Debt Free Including the Mortgage in 7 to 9 years". "How to be Debt Free in 7 to 9 years - Debt Free or Cash Poor". http://www.debtfreeorcashpoor.com/ Take control of your credit and debt. People who are getting out of debt don’t care what others think. If you want to get out of debt, you can get out of debt—no matter how much money you owe. When you’re motivated, passionate and even a little angry, you’re more than willing to do whatever is needed to find financial peace. Dealing with debt is not an easy task. In fact, it can be a very exhausting experience. Paying off debt every month is hard for many people to do. A debt generally refers to something owed by one party, the borrower or debtor, to a second party, the lender or creditor. Debt is generally subject to contractual terms regarding the amount and timing of repayments of principal and interest.The term can also be used metaphorically to cover moral obligations and other interactions not based on Interest is the fee charged by the creditor to the debtor. Interest is generally calculated as a percentage of the principal sum per year, which percentage is known as an interest rate, and is generally paid periodically at intervals, such as monthly or semi-annually. There are three main ways repayment may be structured: the entire principal balance may be due at the maturity of the loan; the entire principal balance may be amortized over the term of the loan; or the loan may partially amortize during its term, with the remaining principal due as a "balloon payment" at maturity. Amortization structures are common in mortgages and credit cards. A debt obligation is considered secured if creditors have recourse to specific collateral. Collateral may include claims on tax receipts (in the case of a government), specific assets (in the case of a company) or a home (in the case of a consumer). Unsecured debt comprises financial obligations for which creditors do not have recourse to the assets of the borrower to satisfy their claims. Common types of debt owed by individuals and households include mortgage loans, car loans, and credit card debt. For individuals, debt is a means of using anticipated income and future purchasing power in the present before it has actually been earned. Commonly, people in industrialised nations use consumer debt to purchase houses, cars and other things too expensive to buy with cash on hand. Besides these more formal debts, private individuals also lend informally to other people, mostly relatives or friends. One reason for such informal debts is that many people, in particular those who are poor, have no access to affordable credit. Such debts can cause problems when they are not paid back according to expectations of the lending household. In 2011, 8% of people in the European Union reported their households has been in arrears, that is, unable to pay as scheduled "payments related to informal loans from friends or relatives not living in your household. A term loan is the simplest form of corporate debt. It consists of an agreement to lend a fixed amount of money, called the principal sum or principal, for a fixed period of time, with this amount to be repaid by a certain date. In commercial loans interest, calculated as a percentage of the principal sum per year, will also have to be paid by that date, or may be paid periodically in the interval, such as annually or monthly. Such loans are also colloquially called "bullet loans", particularly if there is only a single payment at the end – the "bullet" – without a "stream" of interest payments during the life of the loan. Debtors of every type default on their debt from time to time, with various consequences depending on the terms of the debt and the law governing default in the relevant jurisdiction. Riskier borrowers must generally pay higher rates of interest to compensate lenders for taking on the additional risk of default. Debt investors assess the risk of default prior to making a loan, for example through credit scores and corporate and sovereign ratings.