Stimulus Plan

While Washington works away at trying to fix our ailing economy, "We the People" can start doing something right now which will enable us to regain liquidity sooner while stimulating the economy better, and faster, than any program Washington can invent.

      It's estimated that each American carries an average balance of $8,000 in credit card debt - more or less. But there are other loans in addition to credit cards weighing us down. What about mortgages, auto loans, student loans, etc? Information available to us from financial reporting sources tell us that Americans are paying up to [and in some cases, more than] one half of their monthly income to lenders to pay down their loans. We are paying the monthly fee set by the lenders, and making minimum payments on credit cards. This only prolongs the problem by keeping us enslaved to debt.
       The health of our economy is directly dependent on the free flow of money. When businesses and individuals enjoy "liquidity," having money to spend for needs and wants, the economy is strong and booming. People buy things, go out to shows and restaurants and spend. Businesses prosper, people are working, goods are produced and bought. We enjoy prosperity.
       However, when businesses shut down and people lose their jobs, production of goods drop, money becomes scarce, and people have to measure what they buy and do with less luxuries. These are the times we're in now, and they're going to be around for a while. Some people are so overdrawn that they won't be able to recover. Some will lose their homes, others will declare bankruptcy. However, there are those who still have jobs and can still afford to pay their bills every month. This group is America's hope . If these people can pay down their debts, then they will be the ones to start spending again and get our economy moving - and more successfully than anything our leaders in Washington can do. On an optimistic note, we will complement efforts being made in Washington.
       Imagine that this group totals about 50 million people, roughly 25% of the nation's working population. This is a conservative figure. Let's say that their monthly payments towards paying off their loans alone totals $1,500. This, too, is a conservative figure when you consider credit card debt per American comes in at $8,000. Mortgages, auto loans, student loans and other loans have to be factored in. Virtually one half of their monthly income (after taxes) is tied up in paying off their debts to the lenders. Money that could be injected into the economy to support businesses and workers by keeping people employed - and could buy us the things we need and want - instead goes to the lenders. Now imagine what could happen if this group begins accelerating the pay-off of their loans and starts becoming debt free. This group has the potential of inserting $75 billion dollars into the economy per month ($1,500 X 50 million people), or $900 billion dollars per year - nearly $1 trillion dollars - which would benefit our economy and workers. This group is us, each one of us who continues along the old path of holding onto and prolonging our debts.
       Can you afford to accelerate your loan(s)? Add up your monthly loan payments and divide by 12. For example, $1,000 divided by 12 means you'll be paying about an extra $83.33 per month to accelerate the pay-off of these loans. If you have several loans and can afford to accelerate only one, use the shortest loan now to terminate - credit cards are the preferred choice if you can do it. But start eliminating at least one loan - then go to work on the rest of them.
       When the rich borrow money, they pay off their debt as quickly as possible to save money on compounding interest. The rich manage their debts far better than the middle class who continue to fall for the bankers' baloney of taking on long term debt, and then succumb to endless refinancing of that debt. The bankers laugh all the way to their villas on the French Riviera in their private Leer jets. Enough, hard working America!!! Our program has just leveled the playing field with the rich so that anyone can pay off loans quickly.
       The answer to our problems is to manage loans intelligently by starting to pay them off as quickly as possible. You save money - and money saved is money earned [in your pocket or offshore bank account]. Plus, you will gain liquidity sooner - more available money to spend or invest as you see fit. What's the alternative? On the rosy side, a $500 one time stimulus payment from Uncle Sam? That won't accomplish anything. Everyone will use that money to make a payment on their bills [to the lenders!!!], and nothing substantially will have changed [except the lenders getting richer]. It's also unlikely that Washington will approve a $100 billion stimulus plan for us. Need more motivation to get moving in the right direction? On the gloomy side, Google the November 14, 2005, Business Week article by Susan Berfield entitled "Thirty and Broke," which shows what's happening to some of our well educated college graduates struggling to pay off student loan and credit card debt. Google "Business Week," then enter "Thirty and Broke/Susan Berfield" in the "Search businessweek.com" window. AmFinAd is working very hard to reach out to these people and college students so that they avoid the pitfalls of debt.
       Do you understand now why prolonging debt will only delay America's economic recovery, keep our money mortgaged to the bankers - and us financially enslaved to them - only making the lenders richer? Others seem to agree with our thinking and policy.
       For example, the August 29th edition of Agora Financial's excellent e-letter, The Daily Reckoning (Agora Financial, August 29, 2009. The Recovery Isn't Adding Up , by Kate Incontrera), stated bluntly that "The US consumer isn't going to be able to pull the global economy out of this mess - because who is lending them a hand? Certainly not the US government. Don't wait for them to bail you out - take charge of your fate ....(emphasis added by this author). We, at AmFinAd , are lending the American consumer a hand with our no cost loan acceleration program!
       The June, 2009, edition of SFO magazine (Stocks, Futures and Options Magazine [SFO], June, 2009. Recession: A Journey Into The Unknown , by Andrew B. Busch), addressing the current recession, confirmed that "The US is... highly dependent upon consumer spending." No consumer spending, the economy declines and remains stagnant - and hard times stick around longer. Increased consumer spending will be the best stimulus for our economy. But before that happens, personal debt has to be reduced, and eliminated, so we have money to spend and invest again. Want to know something interesting? Agora Financial touched on a critical point when they mentioned about the US consumer pulling "the global economy out of this mess." Due to the decline of American spending, other economies are feeling the pinch - particularly China. We are the biggest spenders and supporters of the so-called global economy. American tourism and demand for foreign products keeps many foreign economies afloat. Want proof?
       Jack Crooks, a long time expert on currencies, wrote an article in the March, 2009, The Sovereign Individual (The Sovereign Society) entitled, "The Great Fall of China." Can you imagine the boldness of such a title? The media misrepresents how well China is flourishing, almost an unstoppable force. Well, their economy is taking a hit because exports - largely due the diminished demand by the American consumer - are down significantly. And we will affect other economies if China scales down due to less demand and purchase of commodities from Canada, Latin America and the Eurozone. Jack writes, "As global demand slackens - thanks primarily to a U.S. consumer 'spending freeze,' China will take a direct hit." Furthermore, he continues, "I can't stress this enough. Unless or until the U.S. consumer resumes his shopping spree, the world's largest source of demand (this author's emphasis) is effectively missing-in-action."
       If the American consumer has such a dramatic impact on the economies of China and other nations - and we do - we certainly have the power to turn our own economic malaise around. Two things have to happen: (1) Realize that we have the power to do this by ourselves and stop looking to Big Government for help. We can change the course of events by ending our slavery to debt and the lenders. (2) Start to work the plan. Download the free software and try it for your loans. Then decide and take action. It will take a little of your time and effort, but the results are worth it.
       All of us here at AmFinAd are optimists. We've been showing people how to save money by managing debt since 1998. This is not the end of the world, unless the American people just lay down and cry "Uncle." That's not likely to happen because that's not who we are. The old adage comes to mind:

Give a man a fish and he'll eat for today; teach him to fish and he'll eat for the rest of his life.

        A one time "stimulus" payment from Uncle Sam is only good for today; regain liquidity by starting to reduce your debts and freedom from the lenders, and we take back our lives and country. This is the only real "stimulus plan" we got. Be a part of the economic recovery by joining that group of 50 million. Do it for your country. Do it for yourself.
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Copyright 2009 by William Homolka, Chief Financial Officer, and founder of New York based American Financial Advisors, known as AmFinAd . They have been helping Americans accelerate the pay-off of loans, and save money, since 1998 with the program available on this domain.