Archives For credit

Imagine trying to withdraw money from the bank and they don’t have it.

What is a run on the bank? When a large number of people want to withdraw their money from a bank because they’ve lost faith in the banks ability to give them their deposits when asked.

This is when depositors learn the bank doesn’t have all their money. It’s a house of cards, a sham, fake.

If this happens to enough depositors the bank can collapse and go out of business. You see the wizard behind the curtain, lose faith in the system.

What is fractional reserve banking?
The bank only needs a fraction of what you deposit on hand at the bank on any given day. You deposit $100, they are only required to keep $20 on deposit.

Where is your other $80? What if they’re lending it out for loans on cars, mortgages, & for credit cards, etc. What interest do they earn? From 4% to 29%. What interest do they pay you? .25% on CD.

Buy a floor safe, free standing safe, or a gun safe. Floor safes can be installed before concrete is poured, others can be bolted to the concrete slab, wood flooring, or wall studs.

Benefits: You have immediate access to your cash/valuables at all times. Many are fireproof. Don’t go cheap. Deadbolts in door, key and combination to access.

You can still bank with your favorite bank for checking. Deposit money used primarily to pay bills via checks or debit cards.

If bank shuts down due to bankruptcy, how long will it take to recover the contents of a safe deposit box? They own the metal box, you own the contents.

You won’t get your checking/savings deposits back, they will be used to pay the banks creditors in the BK.

The Creature From Jekyll Island – by G. Edward Griffin

Debt Shepherd 2017, All Rights Reserved

Without you the bank wouldn’t be in business.

1) Character – You actually knew the banker. Local lending.

2) Collateral – Car, house, 4 wheeler, tractor, etc.

3) Credit – Payment history. 3 X 5 cards at Sears when my wife was young.

4) Capacity (paycheck) – This is the real asset. The real collateral.

The real asset is you. No paycheck, no monthly payments. They’re not in the car business or the 4 wheeler business. They’re in the business of collecting interest payments from you. Selling the installment contract to someone else who collects the interest payments and getting paid a fee.

Bank doesn’t want empty houses they have to pay taxes/insurance/maintenance on. They want interest payments, your rent payment for the use of their money.

You know where to find me. Podcast page. email or voicemail.
Coaching is available.

I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight

Debt Shepherd 2017, All Rights Reserved


In the audio (click above) we cover:

What is the interest rate?
Who decides?
Difference between the interest rate and the REAL interest rate.
3 ways to save interest paid over the life of the loan.
Why do we borrow money from strangers?


The Man Who Quit Money

Get Your Mind Straight. Get Your Money Straight.
Debt Shepherd 2015, All Rights Reserved

193 DSR – Credit Scores

September 1, 2015

credit score

Ahyh is our guest. We discuss credit scores. What they are and are NOT. Late payments. How they affect your scores. Why should you care? And a real life case study of a credit card late payment.

What makes a credit score? Rate = Risk?

Recent iTunes review left by AlmaDale, 5 stars:

“Just found Greg and his podcast and loving it so far.  Love the topics and the guests!!  Greg is down to earth and sounds like someone you could have a beer with and have a great time!  Looking forward to hearing more!!”


Debt Shepherd 2015, All Rights Reserved


You’re borrowing the purchase price and you’re borrowing the interest paid. At the same time. Two loans, not one. Look at your amortization schedule. A – Mort – ization – Mort means death.

What is interest?
Rent for the use of the bank’s money.
They didn’t have it to lend anyway. You created it when you signed the promissory note.

$100k loan @ 4% interest for 30 years. You pay back $100k.
And you pay back $72k interest or rent for the use of the banks money.

$72K divided by $100k = 72% interest, not 4% as you’ve been lead to believe.

You don’t question it because the monthly payment fits into your comfort zone.

So you borrow $100k and payback $172K. You have to earn $172k plus (for example) your 25% tax bracket. You have to earn $172k plus $43k to payback the loan. That’s you earning $215k to pay back a $100k loan.

Check out the blogtalk interview with host Rick Fiorio:
The Right Side of Things

Give us a call on our voicemail listener feedback line at 615-200-7189
or drop Greg an email at: greg [at] debtshepherd [dot] com

Debt Shepherd, 2015 All Rights Reserved

Screen Shot 2015-01-24 at 4.20.28 PM

We talk to Melanie Free-Clinton of Good Credit Headquarters and explore:

1) What is a good credit score?
2) How can you improve your credit score?
3) Are lending and credit scores just a game?
4) Melanie’s feelings about co-signing a loan for someone.
5) Why applying for credit in multiple places in a short period of time isn’t a good idea.

You can find Melanie at:
Good Credit Headquarters

Give us a call on our voicemail listener feedback line at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

Debt Shepherd 2015, All Rights Reserved


1) If we’re going to borrow money, why from a bank?
2) Why not from a family member?
3) Not having the money to lend is why we don’t.
4) Knowing people’s business is why we don’t.

– Draw up a promissory note. Take collateral (if possible). If a family member is irresponsible, don’t lend. If you borrower from a family member, pay it back. Don’t assume you don’t have to and it’s OK just because it’s family.

– Decrease dependency on banks (strangers), keep wealth in the family/community, teach each other to save/build wealth. Stop giving money to corporations that don’t care about you (Wall Street).

Resource: (micro lending around the world)
Lending Club

Give us a call on our voicemail listener feedback line at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

life is short
Life is short, you only live once. Why not live free?

“Plastic has wings to fly out of wallets and purses and mannequins in a store front window get more looks than artwork in the Metropolitan Museum of Art.” – John from NYC

Consume – to use up or destroy as in fire. Cancer.

Q: If you could change one thing about money, what would it be?
A: Eliminate interest charged in lending.

Give us a call on our voicemail feedback hotline at 615-200-7189 or drop Greg an email at:
greg [at] debtshepherd [dot] com

There is no need to copyright truth