Introducing:  The Infinite Banking Concept (IBC)

This blog is primarily dedicated to introducing the Infinite Banking Concept (IBC) to Filipinos, both here and abroad.

The Infinite Banking Concept  (IBC) is a creative way of financing our purchases, especially large ticket items like house and lot, cars, motorbikes, vacations, business expansion, credit card repayments, and even charitable donations and giving.

When you want to own  a house and lot, for example, the traditional route is to have it financed by a government financing institution such as  Pag-ibig or a private bank.

When you pay your monthly amortization, you pay your principal plus the interest.

Assuming you will qualify, if you take out a P1.0 Million loan @ 8.5% interest for a term of  25 years, your monthly payment is P8,052.00.  After 25 years of religiously paying your monthly amortization, you will have paid a total of P1,000,000 for the principal and P1,415,682 for the interest, for a total of P2,415,682.

Notice that the interest is 141.57% of the principal!  The true cost of your house and lot has more than doubled!  If your loan has a term of 30 years, your interest expense would be P1.768 Million!

This is why we need the Infinite Banking Concept (IBC)  and have ourselves become our own banks and financing institutions.

The IBC will enable us to recapture all the principal and the interest we would have paid to Pag-ibig or to a bank, and much more! Just imagine what you can do with the P1,768,000 interest expense if we can have it rather as an interest income!

How is this done?

Be a follower of this blog and you will know the answer. J