How the AMP System Works
The AMP System was originally designed as a mortgage acceleration tool. During development it was realized that it can also be used to eliminate virtually any debt…be it a mortgage, credit card, auto loan, or any other outstanding balance. Furthermore, continuing to use the AMP System principals after the debt is eliminated provides a method to rapidly accumulate wealth.
The foundation of the AMP System maximizes the power of interest cancellation and your discretionary income (funds left after all bills are paid). There are two methods that can be implemented depending upon your personal situation. One version utilizes a Home Equity Line of Credit (HELOC), and the other uses a dedicated credit card & savings account (or money-market, etc…). Both methods will require that you make some changes in your banking practices, commit to a HELOC or savings account for funding, and follow the schedule set by the AMP System. Using a HELOC is likely the preferred method, however, personal circumstances, such as low equity, may dictate the use of a savings account instead. Finally, you must have a complete understanding of your monthly income, expenses, and discretionary income. The AMP System will generate your payment schedule and payoff projections based upon the numbers you provide. It is extremely critical to analyze your monthly spending habits so you can attain the most accurate projections.
The foundation of the AMP System maximizes the power of interest cancellation and your discretionary income (funds left after all bills are paid). There are two methods that can be implemented depending upon your personal situation. One version utilizes a Home Equity Line of Credit (HELOC), and the other uses a dedicated credit card & savings account (or money-market, etc…). Both methods will require that you make some changes in your banking practices, commit to a HELOC or savings account for funding, and follow the schedule set by the AMP System. Using a HELOC is likely the preferred method, however, personal circumstances, such as low equity, may dictate the use of a savings account instead. Finally, you must have a complete understanding of your monthly income, expenses, and discretionary income. The AMP System will generate your payment schedule and payoff projections based upon the numbers you provide. It is extremely critical to analyze your monthly spending habits so you can attain the most accurate projections.
HELOC
To use the HELOC method with the AMP System you must have a HELOC, NOT a Home Equity Loan. There is a difference. The HELOC should be open-ended like a credit card with interest charged on the average daily balance. Like a credit card a HELOC can be drawn from at any time, but more importantly, deposited to at any time. The HELOC in this case becomes your checking account. This means you will pay all monthly expenses (gas, groceries, mortgage, phone, etc…) directly from the HELOC. On the flip-side you will deposit all monthly income directly into the HELOC.
With a HELOC you will “borrow” from it to pay down your debt/mortgage with regular and accelerated mortgage payments. However, the “borrowed” funds will be “repaid” with every paycheck deposit into the HELOC. The discretionary money applied to the HELOC further drives down the outstanding HELOC balance, thus reducing interest charges to the HELOC. Furthermore, the accelerated payments to your mortgage are reducing your principal and thus reducing your mortgage interest as well.
Based upon your unique financial circumstances, the AMP System will calculate how much money to borrow from the HELOC, when to borrow it, and project your payoff date. As real life transactions are entered into the AMP System ledger, accelerated mortgage payment schedules will automatically adjust to reflect your actual credits and debits to the HELOC.
The HELOC accelerated mortgage payoff method is ideal in situations when there is already significant equity built up in the home. It provides great flexibility in managing finances and enables “borrowing” from the HELOC to pay off any outstanding debt.
HELOC REQUIREMENTS: The HELOC should be open-ended (like a credit card), have an interest only payment option, and have a variable rate. For easier use of the HELOC, it should have no fee per check written, and no limit to the number of checks written. Also to consider are the ability to transfer money from checking to HELOC and from HELOC to checking, have no limit to the number of transfers per month, no fee for on-line transfers, and no dollar amount limitation on transfers.
Check your personal projection here
Download AMP System for HELOC
With a HELOC you will “borrow” from it to pay down your debt/mortgage with regular and accelerated mortgage payments. However, the “borrowed” funds will be “repaid” with every paycheck deposit into the HELOC. The discretionary money applied to the HELOC further drives down the outstanding HELOC balance, thus reducing interest charges to the HELOC. Furthermore, the accelerated payments to your mortgage are reducing your principal and thus reducing your mortgage interest as well.
Based upon your unique financial circumstances, the AMP System will calculate how much money to borrow from the HELOC, when to borrow it, and project your payoff date. As real life transactions are entered into the AMP System ledger, accelerated mortgage payment schedules will automatically adjust to reflect your actual credits and debits to the HELOC.
The HELOC accelerated mortgage payoff method is ideal in situations when there is already significant equity built up in the home. It provides great flexibility in managing finances and enables “borrowing” from the HELOC to pay off any outstanding debt.
HELOC REQUIREMENTS: The HELOC should be open-ended (like a credit card), have an interest only payment option, and have a variable rate. For easier use of the HELOC, it should have no fee per check written, and no limit to the number of checks written. Also to consider are the ability to transfer money from checking to HELOC and from HELOC to checking, have no limit to the number of transfers per month, no fee for on-line transfers, and no dollar amount limitation on transfers.
Check your personal projection here
Download AMP System for HELOC
Credit Card & Savings Account (CC&S)
The CC&S method with the AMP System is similar to the HELOC method. However, the goal is to increase the savings account balance to accommodate accelerated mortgage payments. It also strives to maintain a minimum savings balance that is determined by you.
Using the CC&S method, all monthly bills are paid with a credit card and all income is deposited into the savings account. When the credit card bill is due, it is paid in FULL with funds from the savings account. This prevents any interest charges from being applied to the credit card, enabling you to borrow money interest-free for the month. Mortgage payments will be paid from the savings account. Accelerated mortgage payments will also be paid from the savings account but not until there is a significant increase in the savings account balance due to the accumulation of discretionary income. The CC&S method combined with the AMP System will also calculate how much money to take from the savings account, when to take it, and determine your payoff date.
The CC&S accelerated mortgage payoff method is a solution for anyone that cannot qualify for a HELOC for whatever reason yet desires to improve his financial situation and eradicate any debt. The CC&S method will help develop budgeting skills while providing flexibility in managing finances. In the case of a home owner that cannot qualify for a HELOC, the CC&S method will help build equity quickly and allow him to switch to the HELOC method if desired.
Check your personal projection here
Download AMP System for CC&S
Using the CC&S method, all monthly bills are paid with a credit card and all income is deposited into the savings account. When the credit card bill is due, it is paid in FULL with funds from the savings account. This prevents any interest charges from being applied to the credit card, enabling you to borrow money interest-free for the month. Mortgage payments will be paid from the savings account. Accelerated mortgage payments will also be paid from the savings account but not until there is a significant increase in the savings account balance due to the accumulation of discretionary income. The CC&S method combined with the AMP System will also calculate how much money to take from the savings account, when to take it, and determine your payoff date.
The CC&S accelerated mortgage payoff method is a solution for anyone that cannot qualify for a HELOC for whatever reason yet desires to improve his financial situation and eradicate any debt. The CC&S method will help develop budgeting skills while providing flexibility in managing finances. In the case of a home owner that cannot qualify for a HELOC, the CC&S method will help build equity quickly and allow him to switch to the HELOC method if desired.
Check your personal projection here
Download AMP System for CC&S