The credit pool

If you want to pay off your credit in record time here is a little trick.

Take a credit card or a line of credit with about a thousand dollars credit line or more. ( You can use a $1000 from a saving account, 401k loan, etc.) Take the thousand dollars and put it into an interest baring account ( Normally a money market account that is tied to treasuries bills). Next work to pay off the thousand dollars you now owe from starting the pool first. When this is paid off, you will have what I will call your credit pool. ( A credit pool is a pool of money that you pass all your payments through). That is a thousand dollars that you can pay your bills from. From now on you will use this card or your credit pool to pay your credit card bills etc.

You can contact your credit card company or bank for checks or you can pay on line as a credit card or atm, or you can set up an electronic payment plan and pay your bills that way. The only thing you must be careful with is that some banks will take away your 30-day grace period if you use the checks or get cash, so you need to find out what is your bank policy.

If you use the money market account, and you should use the money market account, the bank should supply you with checks. Now it's important that you know the bank or brokerage policies because some will penalize you if you write over a certain amount of checks.

Next about 10 to 15 days before the due date, pay on the bill or bills you choose to tackle. You make a payment to the next credit card or bill, you pay the normal payment, and you pay the amount you would have normally paid the credit card you used to create the credit pool. Example: ( If the monthly payment was $30, you add that to the payment). The next step is the most important, when you get paid, you pay the money that you would have normally paid on the credit card back into the credit pool. What this will do is allow you to pay on your next card early and save you some money on the interest and stop late and overage fees' together. It will also cut down what you owe by the extra $30, and it will create a good payment record or history.

(That means that if your payment was $30 you make that payment plus a extra $30 for a total of $60 for that payment , you make that payment from the credit pool, so if the pool was $1000 it would now be $940. Now on your payday you pay the pool back the $60 so it will go back to $1000.)

Now you want to know how you can afford to pay an extra thirty dollars, Well when you created the pool you had to pay back the thousand you borrowed from your card. If you paid that back and it didn't kill you, or your budget you will be alright if you make the extra $30 dollar payment.

When you make the payment back to the credit pool, if all was done right, you will have paid the balance early, which will allow you to use their money without much, if any interest being accrued if you are using a line of credit or credit card. Sounds like an interest free loan to me.

If your using your own money then you don't have to worry about paying any extra if any interest.

Well you continue this process until you pay off each credit card. As you pay off a credit card you take the money that you would have applied to the paid off card and apply it to the next card. ( Example: if you just paid off a card that charged $36 a month, add the $36 to the pay of the next card plus the $30, so say your payment on the next card was $25 you would add the $30 and the $36 for a payment of $91.) Once you pay off all your credit cards, your credit rating should have gone up. Apply for a line of credit, that's about five or 10 thousand dollars and if you have a car loan or mortgage, use the new line of credit to pay them off early while making your credit rating even better.

Now the credit pool works the same for your car and your house. One thing you must know about the house and car is that they charge the most interest in the beginning of the loan, so lets say you brought a new car for say $24,000 and the payments are $400, well If your line of credit is high enough you can make two payment before the paper work even dry, Basically you can make your down payment after you own the thing. That will save you much more if you give it away up front.

Now the quicker you want to pay things off the more money you add the balance. You will really be surprise how and extra fifty dollars can kick some debt's butt.

Use Your Credit Pool to Make You Rich

Once you get rid of your debt it is time to make yourself rich. You know all those credit card bills you use to have, well add them up, all their cost and then add fifty dollars, This is your new saving amount. This time you are using your money to create wealth for you instead of someone else. Open up a Roth IRA, take that dollar amount, of the bills with the extra fifty dollars, and take that out of your line of credit, or credit pool and put it in your IRA, then pay the credit pool back when you get paid. Continue this process until you reach your yearly maximum for the Roth IRA. What you are doing here is you are continuing to use that money from your debt but this time to create your wealth.

Since the IRA is limited as to how much you can put into it, I suggest you create your own mutual fund with the rest or your own 401k. I suggest you buy the same stocks a man name Warren Buffet buys, and you will be set. I'll write more on this later.

Over Drive Points

If you are really good and can keep up with the credit pool process? And if you have a credit card that pays points, or credits, or percentages? Then you can also maximize your points, credits or percentages. You can maximize your points by paying everything with that one credit card that gives you points.

For every dollar you spend you will earn points. You pay everything, up to your credit pool limit with that card. Then you must pay that credit card off within about 15 days so you don't incur the maximum interest. Then on pay day you pay the credit pool or line of credit off. What this does is allow you to maximize your points.

You can use these points for gifts or whatever. But it will also allow you to create an excellent payment history with your credit card, your credit pool, and your regular bills all while using the same money you had to use anyway. You repeat the process until you are bills free, debt free, or wealthy.