How A Man Paid Off a $7,000 Debt in Four Month?

Date Published: 10/15/2021

One morning, I called my friend Karl while sitting in his car after just making a payment on his car loan.

I asked, "What is the principle on your car loan?" He said, "I don't know." Then he asked, "What is that?" So I begin to explain the difference between the principle and the interest.

I told him to return to the finance company and ask about his loan. Karl asked the loan representative, "What is the principle of my car loan?" The representative replied, "It's around $7,000."

His monthly payment was $621 plus interest payments for $352 mo. In short, Karl's car payment was $973 per month. He did not understand he was loyal to a system keeping him bound.

During the conversation, the bank representative encouraged Karl about refinancing. She was persistent in getting him to refinance and lower the interest to 2.6% with a $230 monthly payment.

After hearing this, he was excited and ready to sign on the dotted line. However, Karl didn't want to refinance; he was interested in paying the car off, not refinancing.

In the end, I share with Karl how to pay his car off in 4 months instead of refinancing for additional seven years.

Today, Karl constantly builds his financial IQ to live better and create his legacy constitution.

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