Lending Company Puts Forth A New Philosophy

Global Equity Lending (GEL) presents a compelling new concept cantered around the belief that building a secure financial future is more challenging than ever before. As financial rules evolve, traditional practices may need revaluation. GEL introduces a philosophy called "Harnessing The Power of Your Mortgage."

In 2004, credit card debt comprised over half of the $2.1 trillion in consumer debt in the U.S., quadrupling over the preceding decade. Currently, the average American household holds $9,000 in credit card debt at an interest rate of 16%. Paying off this debt at such an interest rate would take ten years and incur over $8,000 in interest, highlighting the severe financial impact. GEL proposes an alternative approach, advocating for borrowing money as inexpensively as possible. They argue that credit cards, auto loans, and personal loans come with high interest rates and are non-deductible. Instead, GEL suggests leveraging the power of your mortgage.

GEL contends that Americans operate under a mindset shaped by the Great Depression, which emphasizes obtaining the lowest rate mortgage, setting up bi-weekly payment plans, and making additional payments whenever possible to pay off the mortgage quickly. While this may sound prudent, GEL, supported by New York Times Best-Selling author Rick Edelman in "The New Rules of Money," argues otherwise. Edelman and GEL outline their rules as follows:

1. Never send extra money to your mortgage.

2. Avoid bi-weekly payment plans.

3. Make the smallest payment with the largest tax break.

4. Putting extra money toward your mortgage is like putting it under the mattress.

Edelman provides five reasons to support carrying a long mortgage:

1. Mortgages do not decrease your home's value; it will appreciate regardless.

2. Mortgages offer the cheapest borrowing rates, far lower than credit card rates.

3. Mortgages provide significant tax advantages, unlike credit cards and car loans.

4. It's beneficial to extract equity from your home while you can, as obtaining loans may become difficult in times of financial hardship.

5. Mortgage payments become more manageable over time as your income rises, while the payment amount remains the same.

To illustrate their philosophy, GEL presents "The Tale of Two Brothers," a case study comparing the financial outcomes of two fictional brothers. Brother A follows traditional financial practices, while Brother B adopts GEL and Edelman's strategies. The study shows Brother B with nearly a one-million-dollar advantage after 30 years, achieved through savings from an interest-only loan and mortgage tax breaks. The detailed hypothetical scenario is available at [Your Big House](http://yourbighouse.com).

If you align with this innovative approach and are prepared to actively invest your extra money, an interest-only loan or GEL's power option loan could be the optimal choice. However, proceed with caution.

For more information on this new financial philosophy, visit [Your Big House](http://yourbighouse.com).