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The Roll-Down Method for eliminating debt is amazing, in and of itself. But can we make it work even faster? You bet we can. This is where the Power Money you created by stream- lining your budget comes into play.
By taking a portion of the Power Money in your budget and adding it to your Total Monthly Debt Payment Amount, we can significantly speed up the time frame for paying off your debts. This is done by simply adding it to the monthly payment being paid on debt #1 on a permanent basis.
This, in effect, will speed up the pay-off of the first debt thereby accelerating the roll-down to debt #2. Debt #2 will then be paid off much faster as well and will roll down to debt #3 and so on. The process of debt elimination will be completed faster than you ever imagined possible.
Now as to how much of the Power Money from your budget you should devote to debt elimination, that is up to you. We suggest using some to begin the wealth accumulation phase which we will look at next time. But if you want to be aggressive in attacking your debts, by all means, go for it.
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