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The Alemian File: Episode13- Avoid Getting In Over Your Head In Debt

By David Alemian

A lot of you expressed interest in what I call “The Big Credit and Debt Trap,” and you want to know the best way to avoid getting in over your head in debt.

The best way to avoid getting in over your head in debt is to live within a budget, and most importantly, that budget must include a savings component.   For the savings component you will use a whole life insurance policy. This is where you’ll put away money to create a fund.   You put your money into a whole life insurance policy because it builds a cash value relatively quickly, and you will earn a lot more interest on your money than if you just put it into a bank account.  Over time, that cash value grows and will become your own personal bank.

It’s called the Infinite Banking Concept.  Whenever you wish to make a large purchase, instead of borrowing the money, or using a credit card, you borrow the money from your whole life insurance policy.  The same way you would pay back a lender, you pay back the life insurance policy with interest.

Let’s say you were going to buy a car.   You could pay cash for the car, but then you no longer have that money working for you.  At the end of four years, you have a four-year-old car, and the dealer has your money.  You could borrow the money from a lender, but at the end of four years, you still have a four-year-old car, and the lender has your money, plus the interest you paid.

A better solution is, you borrow the money from your whole life insurance policy, and pay the money back over four years.   At the end of four years, you have a four-year-old car, you have the money you paid for the car and the interest you would have paid a bank.  When it’s all paid back, all the money is back in your whole life insurance policy.  This is the same concept that banks use except in this case you are the borrower and the lender.  Imagine getting back all of the money that you and your spouse pay for large purchases, over your lifetime.  When you think of it, the money from the cars, the appliances, home renovations, and any big purchase is all going back into your life insurance policy and earning compound interest… over time, it’s a huge amount of money.  You’re going to spend the money anyway, you’re going to pay the money back anyway… you might as well pay it to yourself.

If you have questions send an email to David@TheAlemianFile.com.

In the meantime, check out and “LIKE” The Alemian File Facebook page.  You should also definitely visit my website at www.CapitalCrestFinancialGroup.com.

Absolutely, make sure you come back here next week to another edition of the Alemian file.


About David Alemian

Successfully creating affordable retirement plans guaranteed to last a lifetime is a unique, specialty skill. It’s a challenging arena but respected writer David Alemian makes it look easy. Alemian is a leading retirement expert and nationally recognized authority whose expertise is shared via video columns, numerous journals, and talk-shows.

His national recognition results from both revolutionizing and revitalizing how organizations and individuals like you and me plan and save for retirement. Alemian is considered “The Go-To Guy” for creating and implementing absolutely irresistible, lifetime retirement pension programs.

Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Additional content can be found in many well-respected, publications including: MD Magazine, Physician’s Money Digest, Physicians Practice, Journal of Clinical Oncology, Consultant Live, Psychiatric Times, Cancer Network, OB/GYN.net, and The Healthcare Executives Network.


This article reflects the thoughts and opinions of the author and is being provided for educational and informational purposes only. It should not be considered financial or tax advice. Please consult your financial or tax advisor about your situation.

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