Understanding the Debt Spiral to
Effectively Manage Debts

The Debt Spiral is a cycle many of us are in without ever realizing it. We have been trained to incur debt to acquire things, and pay for them over time. At some point in time, we are then Ňadvised" to consolidate the debt we have accumulated over time so we can save money on our monthly expenses. The result: The same amount of debt with a lower monthly expense.

Example:

	DEBTS		EXPENSES
Mortgage:	$ 300,000	@	$ 2,500/mo.
Auto Loan:	$ 20,000	@	$ 400/mo.
Credit Cards:	$ 30,000	@	$ 600/mo.
TOTALS:	$ 350,000	@	$ 3,500/mo.

After consolidation:

	DEBTS		EXPENSES
NEW Mortgage:	$ 350,000	@	$ 2,700/mo.

Unfortunately, it does not end there. Statistically, within three years you will have amassed new debts, and your new totals will exceed the amount of debt you had previously. Your monthly expense for this new debt amount will also be greater than before you initially consolidated. Now you have $405,000 in debt, and you are paying $3,900 per month in expenses. So, what do you do? You're advised, again, to consolidate. And so the Debt Spiral begins. With a newly consolidated loan, you are able to bring the payments down to $3,100 per month, but what will your debts and payments be in another 2-3 years? Chances are they're going to be higher unless you do something about it now to stop this pattern.

By implementing the use of debt as a tool, and by identifying investment opportunities that provide safe and significant returns, you will be able to break the pattern created by the Debt Spiral. We can show you how to consolidate your debts to reduce your monthly expenses AND, at the same time, to obtain money to place in safe investments that provide substantial monthly returns. There are no gimmicks and no requirements for you to purchase anything. Simply sign up for a free consultation with FRS and we will start you on your road to developing true financial independence and wealth.

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