Description (Some HTML is OK)
Makes 0 servings
- For example
- 2 racks baby back pork ribs (2 to 3 lb total)
- ¼ cup fresh orange juice
- Half a cup of soy sauce
- 20g sugar
- A big wooden spoon
Preparation (Some HTML is OK)
1. First we looked at setting up their loan structure effectively, and by this I mean channelling their income through their home loan to help minimise their interest costs. The following graph shows the projected result:
By channelling their income the loan will now be paid off in 14 ½ years as opposed to 18.
2. The next step is to eliminate their short term debt. With a credit card balance of $3000 they are paying $90 a month on credit card interest. Instead we increased their borrowing by $3000 to $243,000 to takeout that monthly expense. The result of this is as follows:
Just by keeping them out of short term debt we save a further 6 months, now having them debt free in under 14 years.
3. The first two steps are basically giving people the best use of their money – maximising their interest savings and avoiding costly short term debt. To improve their results from now we have to look at reducing their spending. By cutting out some of their discretionary spending – mainly bought coffees and lunches – we could reduce their spending by $50 week;
By cutting back a little bit of spending we gain another 2 years and are now looking at them being debt free in 12 years.
4. After the third step they are now paying off their home loan in 2/3s of the time of their current setup, however we are still 2 years off their ideal. At this point, to improve their result, they really need to look at making some lifestyle changes, such as cutting back on holidays, clothing and sports.
To be debt free in 10 years they need to free up a further $80 a week. We decided this could be achieved by only having a big holiday every second year instead of yearly, going out for drinks/dinner half as often and cutting out lotto and some clothing purchases. no credit check loans This 4th step is further than I go with most of my clients as it does require some lifestyle changes, however they wanted a certain result and now they know what is required to achieve it. Even if they don’t compromise their lifestyle they will still be looking at being debt free in 12 years.