has anyone tried the john cummuta tranfsforming debt into wealth system? If so what did you think about it?
I have a lot of student loan debt and am looking for a good, quick way to try and get the debt amount down and was wondering what people think about the cummuta system.
I figured it was a scam bc you owe what you owe no matter what but i thought hey maybe there is something im missing and maybe there is a program to follow that helps you somehow figure it out and get rid of the debt a lot faster. Thanks for your answers!
- Jeanne RLv 71 decade agoFavorite Answer
You can get this paid off in a reasonable period of time once you make the decision to make a concerted effort to get rid of it once and for all. Please do not consolidate or use a debt reduction company . It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score. Student loans are the only debt that can garnish your wages for non payment without taking you to court first. Just list them out on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan will work for you.
A. Have a garage sale and sell anything that you no longer need or want.
B.Get a temporary part time job, if you have one, get another.
Here is a plan that can help you. If you work the plan, the plan will work for you:
1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an "emergency fund" category to your budget and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don't even have to worry about it. You must cut your spending and live on less than you make.
2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.
3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:
To start :
Debt #1 (highest interest): minimum payment+ extra payment
Debt #2 (middle interest): minimum payment
Debt #3(lowest interest): minimum payment
Debt #1: paid off
Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment
Debt #3: minimum payment
Debt #1: paid off
Debt #2: paid off
Debt #3:Minimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.
That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.
4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.
5a. When you have your emergency fund in place, add a category for "fun" to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.
5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.
5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.
You can do it and it isn't as hard as you think. Just follow the plan
- babbleon2Lv 41 decade ago
The best way to get the debt down fast is to add an extra payment, but make sure the check says "for principal only." However, you should only do this once you have a decent emergency fund built up of 3 - 6 months living expenses. Student loans usually have a low interest rate, so it's more important to have cash on hand to prevent needing to use a credit card in an emergency.
I like the 12-step program below - it's free, flexible and practical.Source(s): http://moneycentral.msn.com/content/Savinganddebt/... http://zenhabits.net/2007/07/the-12-step-get-out-o... MBA (18K debt), husband's BS (22K debt), but credit card debt = $0
- Wayne ZLv 71 decade ago
The general consensus is the his "system" should be called "Transforming [your] debt into [his] wealth" and it is pretty much a waste of money. You pay him and he gives you advice that you could get for free anywhere else.
There is nothing magical that can be done. You can't change the laws of math of interest. If you owe $X.xx, then you have to pay back $X.xx (plus interest). No "system" is going to change that.
- 1 decade ago
It absolutly stinks, I ordered it awhile ago and I was very dissapointed with it. It is not very informative or of any help, and now I get hundreds of spam mail from him trying to get me to buy his other courses. It's just a way for him to make money in my opinion. If you want to make money to pay off your debt sell information just like he does and you'll make a lot of money! DON'T BUY HIS COURSE OR PROGRAMS!
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- SusanLv 44 years ago
I have not tried it. But surely it is a ripoff.
- kapnLv 71 decade ago