The Key To Building Wealth

Many people today believe in order to become wealthy they either have to be born into wealth or have a lot of cash to create dollars. The fact is this just isn't true. Building wealth is a mechanical process and because it's so straightforward it's quite boring, as a result many people do not follow through with the formula.

The Problem

Too many people fall into an economic rut and it usually starts when we start moving revenue from one credit card to yet another. Sure this functions for a short while, but eventually it catches up with you and before you know it you have $5000 maxed out on your VISA card and $3000 maxed out on your Discover card.

The following genius move I consider was debt consolidation. While this does work and the phone calls will stop, it's not a solution for the problem at hand. Your monthly payments become lower and this provides the temptation to go out and accumulate even a lot more debt, eventually taking you back to square 1. Not to mention having a history with debt consolidation leads to higher rates on things that count later in life.

Back at square 1, the following step I considered was debt counseling and the idea sounded great, they even promised to lower my monthly payments by $300. I managed to avoid this one particular all together and now that I look back I am glad that I did. What I later found out is the fact that debt counseling is viewed as bankruptcy.

By this time I decided to refinance my home with an equity line/2nd Mortgage loan on my home to get out of debt and it worked perfectly. Having said that, let me tell you a little secret. When you take out a 120k loan on a home that is only worth 90k and the neighborhood starts going downhill like ours did, you cannot sell your home for what its worth. Again, we were stuck in rut where we had to borrow revenue from family to sell our home. Other home owners in the area were not as fortunate.

At this point in time I was seriously considering bankruptcy. Should you think that after seven years nobody will know about your bankruptcy, you will be mistaken. In some cases jobs will not even higher you if you ever had a bankruptcy. Most loan applications ask in the event you have ever filed for bankruptcy and they do take that into account even if it has been 10 years since you filed for bankruptcy. This is when I became desperate and finally cracked the dollars making formula.

By: Wina Estes

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