======================================================================= * * RAPID DEBT ELIMINATION STRATEGY AND MONIOR MATRIX * * * * EXPERT DEBT ANALYSIS, STRATEGY, AND ADVICE * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * THE PACKAGE ANALYZES A SEQUENCE OF ACCOUNTS, WITH CORRESPONDING BALANCES OWED AND MONTHLY OR PERIODIC PAYMENTS REQUIRED, AND COMPUTES CORRESPONDING RATIOS TO DETERMINE THE PRIORITY IN WHICH EACH ACCOUNT IS TO BE PAID OFF IN FULL, USING FINL AND RDES ELIMINATION TECHNIQUES. THE CLIENT IS QUERIED FOR A DESIRED ACCELERATOR MARGIN, FROM WHICH A MONITOR MATRIX IS GENERATED FOR RAPID DEBT ELIMINATION, WITHOUT RE-ARRANGING THE INITIAL INPUT SEQUENCE OF ACCOUNTS. THE EXACT NUMBER OF YEARS AND MONTHS REQUIRED TO COMPLETELY PAY OFF ALL ACCOUNTS IS ALSO COMPUTED. ======================================================================= ________________________________________________________________________ Using PAYMENT STRATEGY # 1, assuming MONTHLY PERIODIC PAYMENTS, and a desired INITIAL ACCELERATOR MARGIN of $ 200.00 , the total estimated amount of TIME required to PAY-OFF all accounts is 2 Year(s) and 3 Month(s) <======> 2.25 Year(s). (INITIAL) Grand Total Amount Owed .......... $ 34854.00 Total Amount of Interest Paid ............... $ 7971.68 (FINAL) Grand Total Amount Re-paid ......... $ 42825.68 ________________________________________________________________________ Using PAYMENT STRATEGY # 2, assuming MONTHLY PERIODIC PAYMENTS, and a desired INITIAL ACCELERATOR MARGIN of $ 300.00 , the total estimated amount of TIME required to PAY-OFF all accounts is 2 Year(s) and 1 Month(s) <======> 2.08 Year(s). (INITIAL) Grand Total Amount Owed .......... $ 34854.00 Total Amount of Interest Paid ............... $ 6642.63 (FINAL) Grand Total Amount Re-paid ......... $ 41496.63 ======================================================================== TIME-SEQUENCE-MATRIX FOR STEP-WISE ELIMINATION OF ACCOUNTS IN SEQUENCE ======================================================================== DEBT:INCOME RATIO = 1.26 : 1 ... 125.73 % CCOUNT ACCOUNT PAY-OFF-TIME PAY-OFF-TIME ACCELERATOR (#) NAME (in Years) (in Years & Months) MARGIN AT PAY-OFF ------ ------------------ ------------ ------------------- -------- 9). Robinson's-May Co. .58 0 Yrs. / 7 Mos. 200.00 1). Amer. Gen. Finance .92 0 Yrs. / 11 Mos. 280.00 14). Mervyn's .92 0 Yrs. / 11 Mos. 482.00 10). T.W.A. 1.00 1 Yrs. / 0 Mos. 497.00 2). I.T.T. Financial 1.08 1 Yrs. / 1 Mos. 558.00 3). Montgomery Ward I 1.17 1 Yrs. / 2 Mos. 663.00 4). Montgomery Ward II 1.17 1 Yrs. / 2 Mos. 693.00 5). Radio Shack 1.42 1 Yrs. / 5 Mos. 710.00 6). M.B.N.A. 1.58 1 Yrs. / 7 Mos. 835.00 7). Bank of America 1.67 1 Yrs. / 8 Mos. 902.00 8). CitiBank 1.83 1 Yrs. / 10 Mos. 1032.00 11). Signet Bank 1.83 1 Yrs. / 10 Mos. 1112.00 12). AmeriTrust/Society 1.92 1 Yrs. / 11 Mos. 1162.00 16). Loan Servicing Ctr 2.17 2 Yrs. / 2 Mos. 1214.00 13). Ford Motor Credit 2.25 2 Yrs. / 3 Mos. 1265.00 15). Alpha Credit 2.25 2 Yrs. / 3 Mos. 1462.00 ------ ------------------ ------------ ------------------- -------- 9). Robinson's-May Co. .58 0 Yrs. / 7 Mos. 300.00 1). Amer. Gen. Finance .75 0 Yrs. / 9 Mos. 380.00 2). I.T.T. Financial .92 0 Yrs. / 11 Mos. 582.00 14). Mervyn's .92 0 Yrs. / 11 Mos. 687.00 3). Montgomery Ward I 1.00 1 Yrs. / 0 Mos. 702.00 4). Montgomery Ward II 1.00 1 Yrs. / 0 Mos. 732.00 10). T.W.A. 1.00 1 Yrs. / 0 Mos. 749.00 5). Radio Shack 1.25 1 Yrs. / 3 Mos. 810.00 6). M.B.N.A. 1.42 1 Yrs. / 5 Mos. 935.00 7). Bank of America 1.50 1 Yrs. / 6 Mos. 1002.00 8). CitiBank 1.67 1 Yrs. / 8 Mos. 1132.00 11). Signet Bank 1.67 1 Yrs. / 8 Mos. 1212.00 12). AmeriTrust/Society 1.75 1 Yrs. / 9 Mos. 1262.00 13). Ford Motor Credit 2.08 2 Yrs. / 1 Mos. 1314.00 15). Alpha Credit 2.08 2 Yrs. / 1 Mos. 1511.00 16). Loan Servicing Ctr 2.08 2 Yrs. / 1 Mos. 1521.00 ------ ------------------ ------------ ------------------- -------- * * * DEBT ELIMINATION TIME CALCULATOR * * * Total ($) Debt ---- # Year(s) Required to Eliminate Total ($) Debt Amount ---- Amount 1 Yr. 2 Yrs. 3 Yrs. 4 Yrs. 5 Yrs. 6 Yrs. 7 Yrs ------ ------ ------ ------ ------ ------ ----- 1000 88 46 32 25 21 19 17 3000 264 138 97 76 64 56 50 5000 440 231 161 127 106 93 83 7000 615 323 226 178 149 130 116 10000 879 461 323 254 212 185 166 15000 1319 692 484 380 319 278 249 20000 1758 923 645 507 425 371 332 30000 2637 1384 968 761 637 556 498 ------------- Total Monthly ($) Payment Amount ------------ EXAMPLE If you were in debt for an amount of $15,000 and you faithfully paid an amount of $692 per month on your indebtedness, then it would take you 2 years to completely eliminate your debt, assuming that you will not continually add more debt. Total ($) Debt ---- # Year(s) Required to Eliminate Total ($) Debt Amount ---- mount 1 Yr. 2 Yrs. 3 Yrs. 4 Yrs. 5 Yrs. 6 Yrs. 7 Yrs. ------ ------ ------ ------ ------ ------ ----- 40000 3517 1846 1291 1015 850 741 664 50000 4396 2307 1613 1268 1062 926 830 75000 6594 3461 2420 1902 1594 1389 1245 00000 8792 4614 3227 2536 2125 1853 1660 25000 10989 5768 4033 3170 2656 2316 2075 50000 13187 6922 4840 3804 3187 2779 2490 00000 17583 9229 6453 5073 4249 3705 3320 50000 21979 11536 8067 6341 5312 4631 4150 00000 26375 13843 9680 7609 6374 5558 4980 ------------- Total Monthly ($) Payment Amount ------------- EXAMPLE If you were in debt for an amount of $75,000 and you faithfully paid an amount of $2,420 per month on your indebtedness, then it would take you 3 years to completely eliminate your debt, assuming that you will not continually add more debt. * * * WEALTH-BUILDING/RETIREMENT CALCULATOR * * * Monthly Investment ($) Amount 5 Yrs. 10 Yrs. 15 Yrs. --------------------- ------------------------ ---------------- 500 $ 39,041- $ 312/Mo. $103,276 - $ 826/Mo. $ 208,962-$ 1,672/Mo 1,000 $ 78,082- $ 625/Mo. $206,552 - $ 1,652/Mo. $ 417,924-$ 3,343/Mo 2,000 $156,082- $1,249/Mo. $413,104 - $ 3,305/Mo. $ 835,849-$ 6,687/Mo 3,000 $234,247- $1,874/Mo. $619,656 - $ 4,957/Mo. $1,253,772-$10,030/Mo 5,000 $390,412- $3,123/Mo. $1,032,760- $ 8,262/Mo. $2,089,621-$16,717/Mo 7,500 $585,618- $4,685/Mo. $1,549,140- $12,393/Mo. $3,134,431-$25,075/Mo --------------------- ------------------------ ---------------- EXAMPLE: If you invest $ 7,500 each month, for 15 years, you'll have $ 3,134,431 in total principal and you'll be able to retire at an income of $ 25,075 per month, for the rest of your life, without putting another penny in. (Based on an average 10% Return On Investment). * * * RAPID DEBT ELIMINATION MONITOR MATRIX * * * PRIORITIZED ACCOUNT PAY-OFF ORDER (Based on Annual Percentage Rate (APR) Per Account Initial ACCELERATOR MARGIN ........ $ 200.00 DEBT:INCOME RATIO = 1.26 : 1 ... 125.73 % x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x PAYMENT STRATEGY # 1 Apply cumulative ACCELERATOR MARGINS to accounts in INDICATED ORDER. As each account is completely paid off, INCREASE accelerator margin by the amount of monthly payment on that account, using this SUM as a NEW ACCELERATOR MARGIN to pay off the next account in sequence. Execute this process, while maintaining the required monthly payments on all other accounts, WITHOUT FURTHER BORROWING OR CREDIT PURCHASES. x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x TOTAL ($) MONTHLY PAY-OFF % PAY-OFF BALANCE ($) RATIO APR ORDER NAME OF ACCOUNT OWED PAYMENT ---------------- --------- -------- ------- ------- ------- Amer. Gen. Finance 4240.00 202.00 20.990 17.70 % * 1). ------------------- --------- -------- ------- ------- ------ I.T.T. Financial 2106.00 105.00 20.057 25.50 % * 2). ------------------- --------- -------- ------- ------- ------ Montgomery Ward I 657.00 30.00 21.900 21.60 % * 3). ------------------- --------- -------- ------- ------- ------ Montgomery Ward II 464.00 17.00 27.294 21.60 % * 4). ------------------- --------- -------- ------- ------- ------ Radio Shack 3670.00 125.00 29.360 21.00 % * 5). ------------------- --------- -------- ------- ------- ------ M.B.N.A. 2695.00 67.00 40.224 21.00 % * 6). ------------------- --------- -------- ------- ------- ------ Bank of America 3257.00 130.00 25.054 19.80 % * 7). ------------------- --------- -------- ------- ------- ------ CitiBank 2890.00 80.00 36.125 19.80 % * 8). ------------------- --------- -------- ------- ------- ------ Robinson's-May Co. 493.00 80.00 6.162 19.80 % * 9). ------------------- --------- -------- ------- ------- ------ T.W.A. 661.00 61.00 10.836 18.00 % * 10). ------------------- --------- -------- ------- ------- ------ Signet Bank 1152.00 50.00 23.040 17.70 % * 11). ------------------- --------- -------- ------- ------- ------ AmeriTrust/Society 1682.00 52.00 32.346 17.40 % * 12). ------------------- --------- -------- ------- ------- ------ Ford Motor Credit 9267.00 197.00 47.041 15.70 % * 13). ------------------- --------- -------- ------- ------- ------ Mervyn's 145.00 15.00 9.667 12.00 % * 14). ------------------- --------- -------- ------- ------- ------ Alpha Credit 276.00 10.00 27.600 11.50 % * 15). ------------------- --------- -------- ------- ------- ------ Loan Servicing Ctr 1199.00 51.00 23.510 8.00 % * 16). ------------------- --------- -------- ------- ------- ------ ($) TOTALS ------> 34854.00 1272.00 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x NAME OF ACCT TOTAL ($) MONTHLY ($) APR BAL. OWED PAYMENT (%) ----------------- --------- ----------- ---- Amer. Gen. Finance 4240.00 202.00 17.70 I.T.T. Financial 2106.00 105.00 25.50 Montgomery Ward I 657.00 30.00 21.60 Montgomery Ward II 464.00 17.00 21.60 Radio Shack 3670.00 125.00 21.00 M.B.N.A. 2695.00 67.00 21.00 Bank of America 3257.00 130.00 19.80 CitiBank 2890.00 80.00 19.80 Robinson's-May Co. 493.00 80.00 19.80 T.W.A. 661.00 61.00 18.00 Signet Bank 1152.00 50.00 17.70 AmeriTrust/Society 1682.00 52.00 17.40 Ford Motor Credit 9267.00 197.00 15.70 Mervyn's 145.00 15.00 12.00 Alpha Credit 276.00 10.00 11.50 Loan Servicing Ctr 1199.00 51.00 8.00 * * * RAPID DEBT ELIMINATION MONITOR MATRIX * * * ======================================================================== x x x CALCULATING ACCOUNT PAY-OFF RATIOS x x x ======================================================================== DEBT:INCOME RATIO = 1.26 : 1 ... 125.73 % TOTAL ($) MONTHLY PAY-OFF APR BALANCE ($) RATIO (%) NAME OF ACCOUNT OWED PAYMENT -------------------- --------- -------- ------- -------- Amer. Gen. Finance 4240.00 202.00 20.990 17.70 % -------------------- --------- -------- ------- -------- I.T.T. Financial 2106.00 105.00 20.057 25.50 % -------------------- --------- -------- ------- -------- Montgomery Ward I 657.00 30.00 21.900 21.60 % -------------------- --------- -------- ------- -------- Montgomery Ward II 464.00 17.00 27.294 21.60 % -------------------- --------- -------- ------- -------- Radio Shack 3670.00 125.00 29.360 21.00 % -------------------- --------- -------- ------- -------- M.B.N.A. 2695.00 67.00 40.224 21.00 % -------------------- --------- -------- ------- -------- Bank of America 3257.00 130.00 25.054 19.80 % -------------------- --------- -------- ------- -------- CitiBank 2890.00 80.00 36.125 19.80 % -------------------- --------- -------- ------- -------- Robinson's-May Co. 493.00 80.00 6.162 19.80 % -------------------- --------- -------- ------- -------- T.W.A. 661.00 61.00 10.836 18.00 % -------------------- --------- -------- ------- -------- Signet Bank 1152.00 50.00 23.040 17.70 % -------------------- --------- -------- ------- -------- AmeriTrust/Society 1682.00 52.00 32.346 17.40 % -------------------- --------- -------- ------- -------- Ford Motor Credit 9267.00 197.00 47.041 15.70 % -------------------- --------- -------- ------- -------- Mervyn's 145.00 15.00 9.667 12.00 % -------------------- --------- -------- ------- -------- Alpha Credit 276.00 10.00 27.600 11.50 % -------------------- --------- -------- ------- -------- Loan Servicing Ctr 1199.00 51.00 23.510 8.00 % -------------------- --------- -------- ------- -------- ($) TOTALS -----> 34854.00 1272.00 ========================================================================