Page 12 - Book1E

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About Family Financial Education Foundation
An Introduction to the FFEF Roll-Up Process
Now that you know a little about the history and organization of FFEF, it’s important that you become familiar with the process we call “roll-up.” This is the process that will help you realize a debt-free life.
By now, you should have received a new payoff date—your estimated debt-free date. If all payments are made as scheduled and no new debt is accrued, this is the approximate date you will be completely out of debt. The roll-up process makes this possible.
Briefly, here’s how our roll-up process works. FFEF sends your agreed- upon payments to your creditors every month. When the lowest credi- tor balance is paid off, the money that was going to that account is added or rolled up and applied to the creditor’s payment that now has the lowest balance.
This process is simple, but it is the greatest advantage of our program and an incredibly effective tool in lowering your total interest costs. Roll-up accelerates your payments, shortens the time you are in debt, and significantly decreases the amount of money you will pay before you are debt free. (See page 58 for more information on our roll-up process and an illustration of the money you can save.)
Additional Acceleration Is Possible
As your bills are paid off, you can make adjustments in the amounts paid toward remaining bills to accelerate your debt payoff even more. Although new debt is discouraged, it can be added, if necessary, as the roll-up process works to lower total debt and provides you with ways to begin achieving security for tomorrow. If additional monthly funds can be added to your agreed-upon initial payment, regardless of when you add them, it will lower the obligation and dramatically reduce the amount of interest you pay overall.