05 Oct Accelerate Paying off Any Loan – Part 3: Your Average Daily Balance
The average daily balance (In Canada, Britain and Australia, it’s the daily interest charge) impacts all of us. It’s what financial institutions use to pay us interest in our checking and savings accounts or charge us interest in our credit cards and lines of credit. It’s a simple calculation that can impact us in a big way. Learn how small changes in when you make income deposits, loan payments and withdrawals can have a major impact on your average daily balance. Learn why when you optimize your average daily balance, the interest rate doesn’t matter. Knowing how to use this simple tool will save you thousands of dollars.
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Read on: Part 1 | Part 2 | Part 4 | Part 5
About the Accelerate Paying off Any Loan series
Everyday, our financial institution uses our income to build their profits. How do they do it? They use our money that sits in our checking and savings account as collateral to borrow money and invest it. In today’s market, we’re paid a meager .1 percent.
How about turning the tables and using the bank’s money to build your wealth and save thousands of dollars? It’s doable by simply and safely using a line of credit and your income to save yourself thousands of dollars interest payments.
The five part video series, ‘Accelerate Paying Off Any Loan’, that takes a household with a 30-year mortgage of $375K, earns $160K annually and has just under $500 each month after all their bills are paid to pay off the mortgage in 15 years saving $107K in interest and in 15 years, grow their savings to over $85K. The software application, CashMap Pro, is used to create the scenario and the simple solution.
There are two simple techniques that are used to achieve these results: First, a line of credit is exclusively used to make additional principal payments to the mortgage. Additional mortgage payments save you from paying interest. Second, the line of credit’s average daily balance is kept low. This minimizes the interest owed on the line of credit.
Applying these two techniques keeps your dollars working 24/7 enabling you to use the bank’s money to save you thousands of dollars and grow your savings. Parts 2 through 5 walk you through the steps to simply and safely use this strategy.
About the Author
CashMap’s creator, Dennis Williams, earned his MBA from the University of Hawaii and is the Executive Vice-President and General Manager responsible for software development and testing at Smith Technologies LLC.
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