Chances are if you’ve been looking for a way to speed up the process of getting yourself out of debt you’ve heard of John Cummuta. The John Cummuta Transforming Debt Into Wealth System has been around for several years helping hundreds of thousands of people get debt free.
However in this article I’m going to show you exactly how John Cummuta’s system actually works and in the process hopefully helps you save $40 from going to something you will be able to do completely free.
How The John Cummuta Plan Works
If you read my original John Cummuta Review, I talked about why you don’t want to waste your money on something that you could do totally free. I also pointed out that John’s plan does work and can get you out of debt.
It’s no secret how the John Cummuta plan gets you out of debt, they use what it called the debt snowball plan. This plan is the simple process of putting your debt in a strategic order to help you pay it off the fastest way possible.
Every financial blogger I know has discussed this plan at one point or another, so I’ll just quickly review it for you to help out.
- List All Debt in Order Form Lowest To Highest. The reason you are going pay off the lower debt amounts first is because you want to achieve a win as quickly as possible, and paying the lowest amount first will show you that this plan works and can be done.
- Start Paying The Lowest Debt Amount With An Extra Payment. Once in order start paying the lowest debt first along with a minimum extra payment of $50 or more applied to just that one debt. This way you focus on just one debt instead of several at one time.
- Pay Off The Second Debt. Once you have the first debt paid off apply everything you were paying towards the last debt to the next debt. So if your first debts minimum payment was $50 and you were applying an extra $50 towards the first debt you would now be paying the second debts minimum balance plus $100 that was being paid on the first debt.
- Continue The Process Until Debt Free. If you keep applying the extra money over time to the next debt you could be out of debt in a fairly quick amount of time. But whatever you do don’t spend the money on something else keep it going towards the plan.
- Build Your Emergency Fund. Now that all of your debt is paid off you need to put an emergency fund in place to prevent you from falling back into the position you came from. Figure out what one month of expenses cost you and times that by six. This will be how much money you need to save for your six month emergency fund to get out of debt.
And there you have it the John Cummuta Debt Elimination Plan. I know I’ve skimmed through this process fairly quickly so feel free to leave a comment if you have a question.
Free Debt Plan Tools You Can Use
If things seem a little complicated for you yet just check out my debt plans page and I have a few excel sheets that I’ve collected over time that makes the process a lot simpler. All you have to do is plug your numbers in and go.
When you break the John Cummuta system down the snowball debt plan is the true nuts and bolts of the program. So take some time and put your plan together and get on the road to financial freedom.
This post was recently featured in the Money Hacks Carnival by Gather Little by Little.
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Hi there, I enjoyed your article and wanted to ask you a questions if I could…on John Cummunta’s site it says “detb to wealth” and become a millionaire…I totally understand the snowball effect that you talk about and paying smallest debt first and applying that money to next debt, etc…but I don’t understand the becoming a millionaire part….certainly paying off my mortgage is money in my pocket and having a emergency fund…but how do I keep on the road to millions…by buying more property and paying off those mortgages too? Also…I was reading about mortgage acceleration where you make your bi-weekly payments and then right after the bank takes the money from your account…you make the next “principal payment” the same day or next day so you save the interest off the bottom end of the mortgage and over time….saving a ton of money in interest….have you heard of this and what are your thoughts?
Regards, Tanya
After you pay off your credit cards,get your emergency fund,and pay off your house,,you invest in your 401k,ira and thats how u get to be a millonaire,, The bi monthly morgage companies charge u money to set that up,,all it is,if u pay bi-monthly you will make 13 payments a yr,instead of 12, You can do that yourself by paying a little extra every month equall to 1 paymeny over a yr
This is approximately what they strategy that is used on another forum, but they
may have it in reverse. I would like to know how I can increase my income, pay off my
debts? I am very very low income, and disabled so how do I become a millionaire?
The above plan is fine if you have money, but if you don’t and can’t save anything, how
would this work for someone like me? People forget about this, and I feel it is not
fair.
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