Lending Company Puts Forth A New Philosophy

A company called Global Equity Lending has come up with an interesting idea, which is,

According to them, it's because it's harder to build a safe financial future than it used to be ever. The rules are changing, so maybe the old ways should be changed.GEL says that its

"Harnessing the Power of Your Mortgage" is a piece of philosophy.

In 2004, more than half of the $2.1 trillion in consumer debt in the U.S. came from credit card debt.in the last ten years. The average American family has $9,000 in credit card debt. debt at 16 percent interest. At that rate of interest, it would take over ten years to pay off that average. $8,000 in interest by the end of it all. The financial effects of this, which are almost unknown, are devastating. GEL says it has a better way to do things.They think that because you need to borrow money, Why not borrow it as cheaply as possible over the course of your life? Auto loans, credit cards, and All personal loans have high-interest rates and can't be written off. So why not use your strengths?

mortgage?

GEL says that when it comes to their own money, Americans have a way of thinking that

Since the days of the Great Depression, this idea has been deeply ingrained in our country. That way of thinking

is as follows: First, get the mortgage with the lowest interest rate. Then, set up a bi-weekly payment plan. you could send in more payments. So, you'll pay off your mortgage as quickly as possible. I like it, don't you? Well, it surprised me that this company says that's exactly what we do. do NOT want to do! On the contrary, the New York Times Best Sellers list agrees with their idea. Author of best-selling "Rick Edelman, author of "The New Rules of Money," says, "You should get a big,30 every year and never pay it off."

Edelman and GEL came up with rules that look like this:

1. Pay the least amount that gives you the biggest tax break.
2. Don't make plans every two weeks.
3. Putting extra money toward your mortgage is like putting it under your mattress.
4. Never send your mortgage extra money.

Edelman gives five clear reasons why you should have a long loan to back up his claim:

1. A mortgage does not lower the value of your home. Your home's value will go up whether or not have a mortgage.
2. Your mortgage is the best deal you'll ever get on money.
3. Why pay 18% on your credit card when Rates for borrowing is less than 7 percent.
4. The best way to lower your taxes is through your mortgage. Not many tax breaks are left. Mortgage loans are fully tax-deductible, unlike credit card and car loans.
5. You should sell your house while you still can to get cash.

You might find it hard to get a loan if something bad happens, like losing your job.

1. Mortgages get cheaper as time goes on. Most of the time, your payment won't change. Over time, as your income goes up, it will be easier to pay back. GEL presentations include a case study called, show more about what they believe "A Story of Two
2. Brethren "where they compare the finances of two made-up brothers. In the story, Brother A. thinks the "old" way, while his brother (yes, you guessed it, brother B) thinks the "new" way.
3. GEL and the theory of Edelman. The study shows that Brother B has almost a million dollars. Brother B has an edge over Brother A. You can read the whole story but The main point is that the second brother used the money he had saved to pay off a loan with only interest. famous "power option" loan to put the money elsewhere. Together the tax breaks for mortgages led to the million-dollar split 30 years later. So, if you agree with this new way of thinking and are willing to follow the model, REALLY, put that extra money to work for you), then I think an interest-only loan or GEL's power