Page 75 - Book3E

CHAPTER 12
What to Do with Extra Money—Put Power in Your Payments
The dynamic process by which your bill paying is accelerated is referred to as “roll-up.” It’s really the art of paying bills early. The creditors with the smallest balances are usually paid off first although all creditors should receive at least their minimum monthly payments. Once the first creditor is paid off, the payment that you had been paying to the first creditor is added to the payment
initially set for the second creditor, and
this combined payment is made until
the second creditor is paid off. Then that
combined payment is added to the third
creditor and paid until that creditor’s
entire bill is totally eliminated. Then the
process is repeated until all the creditors
have been paid. The process must be adhered to and used consistently to enable the roll-up process to work. This procedure enables your debt to be paid off completely in about one-third the time. You will be amazed at the progress of your accounts once the roll-up process begins. It is likely that you will be anxious to get your statements each month. Just imagine—wanting, not dreading, monthly statements.
The Power of Power Payments
The second most influential tool in accelerating the pay-off of your debt is making extra payments. They are called “power payments.” It means exactly what it says. When you make an extra payment on any
Money is a terrible master but an excellent servant.
—P.T. Barnum
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