Debt Clearance Account
Posted by Rasheed Balogun on May 7, 2008
Debt can leave people feeling over-whelmed and stressed out. So before we begin to work on creating prosperity, I believe it would be a good idea to create an orderly debt repayment plan or a debt clearance account.
I recall when my debt seemed to be eating up my entire paycheck, leaving me with nothing. However after some research, I discovered a way to to retire my debt. Now for the sake of this message, let us consider your mortgage or house payment as an investment, NOT a debt.
As a former debt collector I will let you know, collectors do not care about the excuses as to why you are in debt or what circumstances are preventing you from clearing your debt. What they care about and truly enjoy, is that you have a concrete plan to eliminate the debt.
Here is some insight I have received from Bob Proctor.
1. Create a Debt Clearance Account – take 20% or Monday’s earning and put it directly to your Debt Clearance Account.
2. Sit down and draft a letter which you will send to all of your creditors, informing of your plans to settle your debt. Be sure to create a list of all your creditors and determine how much of the 20% they will each be getting. Here is an example of a letter you could
use:
“Dear CBV Collections (or whomever)
As you know, I am in debt to you for $_________, and I intend to pay you in full, plus interest. In order to achieve this goal, I have been devising a plan during the past few days to put myself in a better financial position. To this end, I have opened a “Debt
Clearance Account” (DCA), and twenty percent of my income is going directly into that account. That will enable me to have sufficent resources to live on, without worry or stress, and it will prevent me from falling into further debt.
Each week (or month) you will receive a check for $_____ from my DCA, until my account with you is clear. I am aware that this is not the figure I had previously agreed to pay you, but I’m sure you will be understanding, and appreciate what I doing.
If you have any questions, please feel free to contact me. I am quite excited about my new plans and if you would like to have me review them with you so that you might help others who are in debt, I would be pleased to do so.
Thank you in advance for you kind cooperation.
Have a wonderful day!
Sincerely
{!firstname}”
Be sure when drafting your letter that you write so it sounds like a fact (which it is) and not merely a request. It is you who is in charge of you finances not your creditor.
When sending your letter, make sure that is it neatly typed and enclose your first payment. If for some reason that your creditor is being an unreasonable person and they call you with threats of court action, hold your ground because there is no court in the
country that would not congratulate you for taking such action to achieve you goal of becoming financially independent.
Now pat yourself on the back as you are on your way to creating a new life for you and your loved ones!
