4/4/10: The Brave New World of Finance – How to Master Your Debt with Jordan Goodman

We’ve heard estimates that every man, woman and child in the US is currently saddled with $40,000 to $170,000 in debt – just for the Federal government!  Then tack on state and local government debt, and before you even get your first credit card, debt has a dominating hold on your finances.  As we boldly go where no one has gone before, it’s more important than ever to be strategic in managing your debt.  To help us explore the galaxy of information on this topic, we beamed a best selling author into The Real Estate Guys’™ studios.

On the bridge of our radio starship:
•    Captain, Chief “Helmsman” and Host, Robert Helms
•    Pointy-eared Co-Host, Russell “Mr. Spock” Gray
•    Ship’s Financial Doctor and Godfather of Real Estate, Bob Helms
•    Best selling author, the Money Answer Man and ship’s Financial Engineer, Jordan “Don’t call me Scotty” Goodman

“Debt, the endless frontier.  These are the continuing escapades of a spendthrift society.  It’s apparent mission: to encumber itself beyond any hope of repayment; to seek out new debt ceilings and then monetize that debt; to boldly go where no one is sure we should.”  Da ta daaa, ta da ta da DAAAA!!!! Swoosh!!!!

Sorry.  We got carried away.  All this may sound like a tee up for political commentary (we are soooo tempted), but it isn’t.  Our point is that debt, both public and private is a major part of every person’s financial future.  And as we attempt to break free from the gravitational pull of the Great Recession, we find ourselves looking at a brave new world of finance – one with new rules that it behooves each of us to learn.

At its core, debt involves getting other people’s money (which we like!) and paying them interest (we like that less).  The motivation of the lender is, like a drug dealer, to get you hooked on debt and forever paying interest.  The motivation of the addict…we mean borrower, is to enjoy now and pay later (or never).  So where does an investor fit in?

As investors, we want to borrow cheap and invest high – just like the banks.  But since there are no bailout programs for us, we need to be more careful.  The first step is to understand the rules – and then to implement effective strategies.  Sound easy, but when the rules change, we need to examine our strategies.

We launch the show talking about the new realities of debt in the post meltdown economy.  For the older folks, we’re getting back to “normal”.  For younger people, free and easy credit was “normal” and the current environment is no fun at all.  We talk about where things are now and where they might be headed.

With the new Credit Card Act of 2010, the rules of credit cards have changed.  Credit cards, like light sabers (we know we’re mixing sci-fi metaphors), are powerful tools in the right hands – while they can be equally dangerous when used by the untrained.  Since the rules are changing, investors and consumers alike need a little training on the state of the art.  Our special guest and prolific author Jordan “Mr. Money Answers” Goodman, brings us up to speed on some of the need to know items.

As the US and the world is coming out of their bunkers and beginning to explore the economic wasteland, governments, industry and individuals are all making adjustments.  For many individuals with unsustainable levels of debt, professional help may be the best answer.  Jordan shares with us his insights about the important differences between Debt Settlement and Credit Counseling Services.  You’ll want to hear what he has to say.

For some people, the aftermath of the meltdown means foreclosure and perhaps even bankruptcy.  Does that mean game-over or is there life after debt?  Once again, Jordan brings in great practical information and insights to help you chart your personal course.

For the two of you who are facing the brave new world with good credit scores and equity, Jordan reveals an AWESOME strategy for accelerating your mortgage.  Long time listeners – and especially readers of Equity Happens –  know The Real Estate Guys™ have never been big fans of mortgage acceleration.  But Jordan shows us how to use the power of cash flow to accelerate the pay off of a mortgage without amortization.  We know it sounds like science fiction, but it’s real.  Check it out!

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