He is teaching people how to live debt-free. If everything goes as hoped for the Financial Independence Network Limited, a few of those 26 people will become soldiers in a war for the American wallet. This war will pit a highly trained army of computer directed lenders against a nearly invisible guerilla force of people like Dave Ireland, telling people all around the country that it is time to tear their credit cards in half and pay cash. Insurance and tax payments would take them up to the 28 percent guideline limit for home debt. Basically, they could commit nearly 25 percent of their gross income to loan obligations and never set off an alarm bell with creditors.
Many families carry more.
In addition to an auto loan they may carry credit cards, a home improvement loan, a home equity loan, student loans, or revolving credit at retail stores. From 1.1 million filings last year, personal bankruptcies are expected to hit over 1,500,000 by the time the bubbles are gone from our New Years' Eve Champagne. A recession would drive them even higher. Questions of general interest will be answered in future columns.