Douglas Eze, founder of Largo Financial Services explains why debt cripples middle income
The financial landscape is rocky for many Americans today. Douglas Eze, Founder of Largo Financial Services is on a mission to change the way Americans view debt and what financial advisors offer clients. People have a lot of different debts and have a hard time saving money because all of their money is used to pay off their debts. Eze wants to talk about what debt does to middle-income America, he points out that for every dollar a person earns, 34% of that dollar goes to debt or interest.
Eze identifies four main categories of debt that he believes hold people back and that people need to understand better. These four areas are credit card debt, student loan debt, mortgage debt, and auto or rental debt. Eze gives us a breakdown of each area of ââdebt, and why they cripple middle-income America.
Credit card debt – Credit card debt is what Eze calls the fastest way to ruin your credit. Demographics such as college students, single parents, and young people often rack up large credit card debt. It could be using credit to pay bills, medical bills, and living expenses, and then working to pay for that. It becomes a cycle and it is difficult to get out of it. This high interest debt almost often leads to bad credit and years of debt.
Student loan debt – Going to college is the way for most to get better jobs and careers, but when students heading from high school to college go into debt, they often have no real understanding of it. what they are getting into. Parents who work to pay off their own student debt will deplete their savings and retirement, or even move their homes to pay for their children’s college, and students still have to take out loans. The cycle of debt increases, often after graduation students cannot find a well-paying job, but this debt follows them. Eze wants to help people understand that there is a better way to approach student debt.
Mortgage debt – Owning a home is considered the cornerstone of the American dream, but in reality it is just another debt, perhaps the biggest, that follows them all their lives. Eze explains that a mortgage is basically paying rent to a lender and the government. Homeowners do not always understand the terms of their loans and may make choices that do not benefit them in the long term, often living with cash strains or on credit due to their mortgage payment obligation.
Automobile debt – Financing or leasing a car seems like good debt and is a necessity for most Americans. However, this is a great way to get into high interest debt, leases often have fees and mileage limits, and do not serve credit well, although they are often presented as of “good debts”.
Eze has developed a system that helps clients get out of debt, called The GOOD Program (Get Out Of Debt), where he teaches clients how to get out of debt in less than 9 years. This system includes mortgages, student loans, credit cards, and auto loans at no additional expense. Eze shows them how to pay off their debts, save thousands of interest and save money for the future, and how to use their money to take advantage of investment opportunities.
Eze is a wealth strategist, author, financial planner and founder of Largo Financial Services. Eze realizes that there is a gap in the way people view debt and the advice and help they get from financial planners. He works with clients on a one-to-one basis to help them understand how debt works and then create a plan to get out and stay out of debt. Find out more on his company’s website, https://largofinancialservices.com.
Posted on June 25, 2021