April 11, 2012 Leave a comment
In today’s life when we talk about our bills, most of us use the terms, just getting by or living paycheck to paycheck. Some of us may not even have a budget plan established to track the money coming in versus money going out. Most of us are able to pay the smaller bills such as phone, cable, and insurance. However, with the larger bills like mortgage, car payments, and possibly credit cards, you hardly have enough money to pay them or shuffle it around until you are able to make the full payment. By that time there may be a late fee added on or you’re running into a problem of using next month’s income to pay the current month’s bills. Don’t think you are the only one trapped in this cycle because you’re not.
Now let me ask you something that probably never even crossed your mind. Have you ever considered prepaying any of your bills? Let me explain; you have extra money lying around and you figure, hey I might as well use this to pay a little extra on my credit cards or mortgage. Don’t worry if you answered no to this because there are only about 1% of us that actually do. Another question is, do you really know the amount you will be paying in interest after your 30-year mortgage is paid off, or your credit card debt is down to a zero balance? Let me give you an example to actually illustrate how outrageous this can be.
Now do you see what I am talking about!? Talk about wasted money. It’s funny how we try so hard to save a couple pennies at the gas pump yet waste thousands on unnecessary interest. The only reason we waste all this money and don’t prepay our bills is because of a lack of discipline and it is obviously very difficult to conquer. There are many services out there that help us with making our life more disciplined and structured. For example, think about personal trainers. They pretty much just stand there and instruct you what to do. You could easily Google a workout out, go to the gym, pick up the weights and do it yourself, but you don’t and why is that? DISCIPLINE! Now wouldn’t it be nice to have a service that is like a personal trainer for your money management? Well there is, and NBA (Nationwide Biweekly Administration) has created that program for you.
NBA is also recognized as a nationally known company that is a loan payment administrator. What it basically requires you to do is set up your payments on a biweekly plan that will pay off your mortgage, student loans, credit cards, or car payment quicker than making regular payments. Remember all that money you were wasting in interest charges? Well look at the chart below to see how much quicker your loan/bills will be paid off by using this method.
You may be thinking, well that looks pretty easy to do. You’re actually making an extra payment per year and that’s it and you’re right. But if it is so easy then why have you not been doing it this whole time? I’ll tell you why in one word, DISCIPLINE! And that is what NBA’s (Nationwide Biweekly Administration) program is all about. NBA plans a schedule to help manage your money and at the same time shaves off yearsof your mortgage. I want to present two charts to you below. The first chart will show what a monthly budget would look like with normal payments for all your bills. You’ll see how a couple weeks out of the month bills can get out of hand due to large amounts owed on car payment or mortgage. Below is another chart showing how much easier a biweekly monthly budget would be to manage.
So there you have it, biweekly payments are the smartest thing you can do if you have any type of mortgage, car loan, credit cards, or student loans. If you would like to learn more about Loan Payment Administration, please click on the links in the sidebar. We provided links that will help answer any questions about how it works. Do yourself and your family a favor and let us help you develope a money management program that will provide discipline and save you thousands of dollars in interest.