Paying Off Existing Debt
How to redirect your debt payments into your own banking system and start recapturing interest immediately.
From Becoming Your Own Banker, Chapters 14–15
Many people come to IBC already carrying significant debt. A common question: should I pay off debts first or start building my banking system now? Nash's answer: start building now.
If you wait until all debts are paid, you may wait years or decades — missing the capitalization phase while Parkinson's Law consumes any money freed up by paid-off debts. The strategy involves running existing debt payments through your policy system as it grows.
As cash value builds, you can take policy loans to pay off higher-interest debts. The critical discipline: continue making the same payment amounts, but now directing them to your policy loans instead of the bank. Before IBC, your car payment goes to a bank and the interest is gone. After IBC, your repayment goes back into your system.
This isn't a magic trick that makes debt disappear. It's a structural change in where your interest payments flow. Over time, as more financing runs through your own system, the cumulative effect of recaptured interest becomes a powerful wealth-building force.