Page 61 - Workbook1E

These new calculations resulted in needing to re-list the order the creditors were paid off on their Creditor Summary Sheet. (The original order listed in PART I is noted in parentheses.) They also calculated the month the larger Rollup Payments would begin and end for each debt, and the amount of the Rollup Payment. Follow along with the result on Erik and Tracy’s Creditor Summary Sheet at the end of this section.
Erik and Tracy’s Debt Rollup Plan—Step 6
1. (1) Again they started with the debt that paid off in the shortest time, their Airline Visa at $200 per month. Payments began on month 1 and ended on month 9, when it would be paid off with a Real Debt of $1,800.
2. (11) Then they listed the Home Center because the low balance of $980 made it the next quickest to pay off. When they added the $200 from the paid off Airline Visa, the monthly Rollup Payment became $224, and began on month 10 and paid it off on the 14th month. This creditor’s Total Real Debt reduced from $1,680 to $1,154 so they already saved $526 in interest!
3. (2) Month 15 they rolled up $224 onto the Blue Mastercard for a total payment of $372, which paid this debt off on the 18th month.
4. (7) Next on the 19th month they rolled $372 onto the Department Store payment for a total of $402, which paid it off the next month.
And so on...
You can see as each debt is paid off, the available funds from the paid
off debts are rolled up onto the next debt. It takes careful calculation to determine the order to pay them off with the most cost savings. It’s not always obvious and requires precise, expert analysis. Their credit advisor was invaluable in helping them determine just what payments to roll up, and in which order.
Debt Rollup Really Works! Step 7
When Erik and Tracy totaled their new Real Debt, Interest Paid, and Months to Pay Off, they were delighted with the results! When they used their Debt Rollup Plan to pay off the mortgage, they cut 244 payments off their original schedule and saved $163,672 in interest on their mortgage alone. By following a Debt Rollup Plan you too can be completely free of debt including your mortgage typically in one-third the time— with never increasing your Total Monthly Payments!
On Erik and Tracy’s Rollup Plan example, you can see they reached their debt-free day 20 years and 3 months sooner than scheduled, and saved $168,444 in total interest. Isn’t it worth finding out how much you can save with Debt Rollup?
Options for Eliminating Your Debt
“Won’t it be great to be free of these debts?”
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