Reply #54: "Transforming Debt into Wealth" is a wake up call [View All]

[osaMABUSh]

I'm reading (actually listening to) "Transforming Debt into Wealth" by John Cummuta. The basic premise is have interest work for you rather than against you: get out of debt, pay off everything, and invest your money. And do this all in 5-7 years.

The "only" debt I have is a 0% car loan and a 5% home loan. But the payment on the house is only 10% of the principal so effectively the interest rate is 90% (OK, 72% after the tax 'break'). A bad deal.

Paying down my mortgage has become a goal - no more minimum payments.

His book woke me up to the credit trap. We are told to be a good consumer and a good American by consuming and spending every penny on SUVs, vacations, bigger houses than we need, etc. then retire at 65 and live on cat food and crackers.