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100% Debt Free… Using A HELOC

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What Is A Home Equity Line of Credit?

A Home Equity Line of Credit (or HELOC) is an instrument offered by the bank that will allow you to withdraw funds at any time for any purpose. Each withdrawal increases the amount due back to the bank. You can make payments to the bank at anytime that will bring the balance down.

Think of it as a big credit card! With a credit card you can make direct purchases with a merchant, like Walmart. With a credit card, you can also get “cash advances.” But these cash advances usually have high fees and a higher interest rate.

A HELOC is a huge credit card that only allows for cash advances… BUT… WITHOUT THE FEES OR HIGH INTEREST RATES!

Credit cards are based on your overall credit profile while HELOCs are secured by the equity in your home. So they are very easy to get.

Our Bills, Expenses, and Income…

Monthly Income = $6000

  • Car Loan $10,000 ($350 Monthly)
  • Student Loan $3,000 ($90 Monthly)
  • Credit Cards $7,500 ($250 Monthly)
  • Medical $18,000 ($400 Monthly)
  • Home Mortgage $115,000 ($2,000 Monthly)
  • Other Expenses ($1,000 Monthly)

So based on our budget, our estimated cash flow was
$2,000

Step 1: Go Get A HELOC From The Bank

The first thing that we did is we went to the bank and got a HELOC with a $50,000 limit.

Although the limit was for $50,000 the balance due at the time is $0. Remember, it’s like a credit card. So you don’t owe anything until you actually use it.

Step 2: Withdraw And Pay Off Debt

Next,we withdrew about $20,500, and paid off our Car, Student Loan, and Credit Cards.

At this point, we owe $20,500 on the HELOC… BUT our cash flow has increased from $2,000 to $2,700. That’s because we no longer have to pay our car note, student loan, or credit card bills.

Step 3: Pay the HELOC Off

To pay the HELOC off, we just simply used the HELOC as our new checking account.

Let me repeat… we stopped using our regular checking account, and just started using the HELOC as our new checking account.

How did we do this? When we got paid, we immediately took 100% of our paycheck and deposited it against the HELOC. This brought the balance down by $6000.

To pay for all of our bills and living expenses we just withdrew the amount from the HELOC, and paid them. This amounted to approximately $3,400.

This means that the HELOC was reduced by $2,600 each month.

At this rate, the HELOC was paid off in 8 months (20,500 divided by $2,600)

Step 4: Repeat

We repeated the process for the Medical Bill and the Mortgage. For the Mortgage, we withdrew $20,000 at a time.

All debt, including our Mortgage, was paid off in 4 years!

Doing it the traditional way, it would have take us 20 Years.

Summary…

In summary, your home is your biggest asset. So long as you are living in the house, the equity is “dormant.” It doesn’t benefit you.

Yes, it looks and feels good to know that your home is worth more that what you owe. But why not use it to your advantage!

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Did Turkey’s President Say “We Are In A War Against Bitcoin”? An Investigation

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War against Bitcoin, people with Turkish flags

Is President Erdogan so out of touch with what’s happening around him that he declared war against Bitcoin? Or is this a case of “lost in translation” and quotes out of context? An article titled “We are in a war against bitcoin,” says Turkey’s president” has been making the rounds over at Bitcoin-Twitter, receiving both mockery and rightful criticism. However, we noticed a crucial detail: the article doesn’t contain a direct quote from Erdogan. That’s suspect.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

Armed with an iron will and Google Translate, NewsBTC explored the issue and came to unexpected conclusions. 

Let’s fall into the rabbit hole.

Is It War Against Bitcoin Or War Against Cryptocurrencies? 

The original article cited a mainstream and generally trusted source, an article in Turkish at Bloomberght titled “Erdogan: We have a separate war against cryptocurrencies.” Reportedly, the president held a Youth Meeting Program, so his audience for this was students from all over the country. They were discussing the Digital Turkish Lira, the country’s proposed CBDC, and one of the participants asked about their current views on cryptocurrencies:

“Erdoğan said that they do not have a problem of opening up to crypto money, on the contrary, they have a separate war and struggle against them.

Erdogan said, “We will not give them such a premium, nor will we. Because we will continue on our way with our money, which is our fundamental identity in this matter.”

He never even mentions a war against Bitcoin. Remember, this is a Google translation and some info might’ve been lost. However, the discrepancies are there. The President says they “do not have a problem” with crypto, but that “on the contrary, they have a separate war and struggle against them.” On the contrary to what? And do notice, it’s not a direct quote either. In the actual Erdogan quote, he says nothing about a war against Bitcoin.

We need more data. Let’s consult other sources.

What Did President Erdogan Say Exactly?

A quick search leads us to The New Arab. They don’t quote the President directly, but their translation makes much clearer the intent of what he said:

“Erdogan claimed that the country “definitely” doesn’t have a problem with the spread of digital assets.     

However, that Turkey would carry on with its own money, which he believes is part of the national identity.”

They don’t have a problem with the spread of digital assets because they’re preparing their CBDC, and their way to sell it is that money is “part of the national identity.” Got it. But, what about this war against Bitcoin thing?

A second search leads us to Newsbit, who seemingly quote a much more clear-headed President Erdogan directly:

“We have absolutely no intention of embracing cryptocurrencies,” the president replied, adding: “On the contrary, we have a war against them. We would never support cryptocurrencies. Because we continue with our own currency that has its own identity.”

Ok, now we know that Erdogan never said anything about a war against Bitcoin and always referred to cryptocurrencies. And that, in code, he was always talking about the Digital Turkish Lira. However, did he really say all that? That quote seems suspiciously close to the original Bloomberg quote, and that one wasn’t literal. If the President said everything that clearly, why wouldn’t Bloomberg quote him?

BTC price chart for 09/20/2021 on Exmo | Source: BTC/USD on TradingView.com

Time To Consult Primary Sources

Luckily for us, Newsbit linked to the Anadolu Agency, a Turkish state-run news agency. This is as close to primary sources as we’re going to get. A report on the whole event that only casually mentions cryptocurrencies at the end. Is the quote present in that report? What did President Erdogan say exactly? Well, according to the Anadolu Agency:

“Erdoğan said that they do not have a problem of opening up to crypto money, on the contrary, they have a separate war and struggle against them.

Erdogan said, “We will not give them such a premium, nor will we. Because we will continue on our way with our money, which is our fundamental identity in this matter.”

Related Reading | Turkey’s Economic Turmoil Shows Bitcoin Is a Better Bet Than Emerging Markets

That’s right! The same exact quote with the same exact wording that Bloomberg used at the beginning. So, Bloomberg literally copied and pasted their article. And Newsbit’s supposed quote is just a rewording of that phrase. We don’t know exactly what President Erdogan said, but at least his intention is clear: Yes to his CBDC. War on cryptocurrencies. And we know for sure he never said anything about a war against Bitcoin.

Cryptocurrencies and Bitcoin are not synonymous, journalists.

Featured Image by Faruk Melik ÇEVİK on Unsplash - Charts by TradingView

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With Bitfinex Integration, Can the Bulls Drive the Price for Polygon (MATIC)?

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With Bitfinex Integration, Can the Bulls Drive the Price for Polygon (MATIC)?
  • Twitter’s Altcoin Sherpa endorsed MATIC.
  • Polygon said MATIC token would soon be available on Bitfinex.

Since the market sell-off on September 7, MATIC has been attempting to regain its initial bullish momentum. Although lower highs outlined its positive trend, traders were unable to maintain prices.

Its recent rise from $1.20 may be beneficial if another higher high forms. Bulls would lose out if the market closed below the 23.6 percent Fibonacci threshold. According to CoinMarketCap,  Polygon price is $1.19 USD with a 24-hour trading volume of $1,143,929,659 USD.

Closing over $1.50 would have solidified an uptrend, but that wasn’t the case yet. A pair of red candlesticks on the charts signalled the end of MATIC’s next upcycle.

While MATIC’s trend is perplexing, the signs have improved. On September 15, the RSI climbed above the half-line and briefly into the overbought zone, indicating a bullish rebound. Bulls held sway as the RSI found support around the mid-line.

A Positive Trend Maybe Anticipated

Twitter’s Altcoin Sherpa endorsed MATIC. Despite the token’s current consolidation, prediction is of significant increases in the following run. As per the tweet, it expects MATIC to hit $1.75 on the next leg up.

MATIC was trying to build an uptrend following a double top formation, but market watchers were sceptical. The bulls had an advantage in each case, and a win is not out of the question. A positive trend may be anticipated if MATIC rebounds back from the 38.2% Fibonacci level and reaches $1.50.

Polygon just tweeted that MATIC token would soon be available on Bitfinex. It’s one of the oldest and most reputed liquid exchanges.

Thanks to Bitfinex’s integration, users will access MATIC on all major exchanges, including Coinbase and Binance. Also, it can act as a catalyst to bring back the lost momentum for MATIC.

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SushiSwap Fails to Break Major Resistance Area, Can it Break-Through?

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SushiSwap Fails to Break Major Resistance Area, Can it Break-Through?