Paying Off Your Mortgage FAST!


— Slide 2: Deposit In, Take Money Out —

Instead of using your checking account to manage your money,

let's use your ALOC as your primary money account.

Understand these concepts:

  • the ALOC is not a savings account
  • the ALOC functions as a tool to drive the MMA plan
  • your ALOC cannot drop below a zero balance
  • payments made into the ALOC will force an adjustment to the principal balance

ALOC Account
Starting Credit Line Balance: $60,000


Date

From

To

Advance from ALOC

Payment to ALOC

Balance Owned
July ALOC Payoff Credit Card Debt $3500   $3500
July Pay Deposit Paycheck   $2500 $1000
July ALOC Pay Mortgage $1250   $2250
July ALOC Living Expense $1000   $3250
July Pay Deposit Paycheck   $2500 $750
July ALOC Pay Auto Loan $500   $1250
July ALOC Living Expense $500   $1750
July ALOC Living Expense $750   $2500
Total ALOC   $7500 $5,000 $2500

What Does This Show

Line of Credit Available: $60,000
  Pay Credit Card Debt - $3,500
  Pay Living Expenses - $4,000
  Balance Owned - $7,500
  Deposit Payment + $5,000
  Ending Balance Owned - $2,500
  • Your Starting Balance was $3,500
  • Your ending balance was $2,500
  • you never made a schedule payment to the ALOC:
    your income represented your monthly payment
  • you borrowed $7,500 from the ALOC
  • you will only pay interest on the average daily balance of $2,500
  • you paid no interest on the $4,000 living expenses
  • your ALOC become an interest cancellation account

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mortgage payoff (part2)