Tips on How to Lower your Debt

[liveguy7]

Here is a tip, there is no debt! Stop paying what you don't owe. Banks can't lend out their own money so they lend on your promisary note. They give you your money and then ask you to repay it with INTEREST - Joke!

The advice here is part of the illusion, that there is a debt. How can you pay back a debt with a debt?

[owningyourfinances]

Liveguy is right, the banks rely on deposits to extend loans. But they must retain a percentage of what they have on deposit vs. what they're lending. Last I checked, a bank only needs to have 20% of the amounts their lending retained in the bank as consumer deposits. This is known as their capitability. So how well capitalized is your bank? On the other hand, if you pay cash, you don't owe yourself any extra in interest, the price listed is exactly what you pay.