Debt Education

Winter 2009 A Publication of Harbour Credit Counseling Education Department

Graduate Testimonials

Harbour is very proud to announce that during 2008 we had over 1334 clients graduate from our debt management program...PAID-IN-FULL! We are especially thankful for the ones who take a moment to say how much they have appreciated our assistance and sincere concern for their success in a financially stable future. Average debt: $22,000; Average Paid-In-Full: 4 Years!!

I want to truly thank you for all you have done on my behalf. Your services were a God-send and I don’t know what I would have done without all your help. After making a call to Customer service I was told my final pay-off is $299.00! I am enclosing a check and discontinuing direct debit. Again, I am truly grateful for all your help. God Bless– Robert

Pauline writes: “Thank you Harbour! You have helped me a lot! I pray I never get myself in this kind of problem again. May God bless you and the whole staff!

Eighth Wonder of the World…In Reverse!
Compound Interest: Rule of 72:

I wanted to let you know how much my husband and I appreciate all the help the people at Harbour have given us...very helpful and courteous. We can now see the light at the end of the tunnel and that is a great feeling.. Sincerely-Elizabeth

Regardless of what we have been taught, the good debt is Paid-in-Full Debt. Debt reverses the Law of Use and actually becomes Compound Interest in Reverse. Instead of the bank having to compound the interest of your money and add that increase to your balance (savings), they get to charge you interest on your borrowed dollars and add that increase to your debt.

Rule of 72:

The rule of 72 tell you the number of years it takes to double your money regardless of the interest rate. In reverse it also tells you the costs for credit by the same rule.

Divide the number 72 by the annual interest rate. The resulting number tells you how many years it will take to double your money or how many years it will take for you to have paid twice as much as the purchase price of any item you purchased with a credit card. The key principal is that over time a small improvement in the interest rate for savings and the additional time for doubling will exponentially multiply your investment. That is why it seems that banks are basically a business with a license to steal.

1. Banks will take our savings money and pay a mere 3% interest,
2. Then give a loan (of our money) back via a credit card balance and charge us 18% interest.
3. Now the bank has made 15% interest profit on money they didn’t even have to provide.

Would you like to share your
Harbour experience?

Send your information to:
Harbour
Attn: Newsletter
101 N. Lynnhaven Road Ste 300
Virginia Beach, VA 23452

Getting In front of the Snowball:
Compound interest is similar to a snowball rolling downhill, quickly getting larger with each turn.

You can choose to run from the snowball and eventually get squashed (carrying balance on credit cards) or you work into position behind, pushing the snowball (investing your funds). In every financial transactiion there is a master and a slave. Choose wisely.

Let’s Do the Math!

Notes:
72 Divided by % of Interest equals the # of years necessary to double your investment.

Example: 72 divided by 8% equals
9 years to double :
$1000 would become $2000

Summary:
Quit Spending Money
you don’t really have!

(Excerpt from Paid-In-Full located under “Tools” section of Harbour’s Home Page.)

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