Debt Free painlessly - has anyone used them before?

Discussion in 'Property Experts' started by lightbringer, 31st Jan, 2020.

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  1. lightbringer

    lightbringer Active Member

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    I just came across a sponsored ads talking about reducing home mortgages by 2 things called Mortgage Mirroring and Offset Amplification from a company called Debt Free Painlessly.

    Just wondering how they works and has anyone used them before.
     
  2. Morgs

    Morgs Well-Known Member Business Member

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  3. Trainee

    Trainee Well-Known Member

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    There is no magic.

    it has to be painless otherwise you would feel it when they extract their fees from your bowels.
     
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  4. Gestalt

    Gestalt Well-Known Member

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    I watched the video on their website for a laugh.

    The whole scheme seems to involve borrowing more money (from equity in your house) at 3% and on lending it for a “guaranteed” 8% or more return. The profits are then used to reduce your mortgage.

    Of course, there is no investment which offers a risk free 8%. The pitch doesn’t say how the 8% return is achieved. I suspect it’s something like private mortgage lending to a development company the promoter has an interest in. But who knows.

    Don’t touch this with a barge pole.
     
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  5. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    Looks like they've made up some snappy names to do debt recycling, using smoke & mirrors to make it sound amazing, throwing in some questionable financial advice.
     
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  6. Trainee

    Trainee Well-Known Member

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    People want to believe in miracles. Or at least in secrets only known to the rich.
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Is it debt recycling or just borrowing to invest. Wonder if the give tax advice too
     
  8. Gestalt

    Gestalt Well-Known Member

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    I suppose it could be debt recycling by another name, but that's not how they sell it.

    In the video, the promoter said that the borrowed funds were then "loaned" at 8%, and there was also mention that the rate would go up each year, which didn't sound to me like investing in equities. The only lending at those sorts of rates that I can think of is private lending to developers.

    Whatever the magic elixir is, I'm sure they take a healthy clip along the way :)

    Edit: See the video on the main page from about 14:00 where he talks about borrowing at 3% and "another bank" pays you 8% for the borrowed money:

    Debt Free Painlessly | Eliminate Your Mortgage Pain in the Next 9 Months
     
    Last edited: 31st Jan, 2020
  9. Player

    Player Well-Known Member

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    Storm Financial anyone..........actually worse than Storm. A Cyclone of fees for the promoters of the scheme until the 8 per cent returns evaporate. :rolleyes:
     
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  10. PandS

    PandS Well-Known Member

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    The Only risk free way to pay off the mortgage quicker is actually paying more toward it
    yes it is that simple and there aren't any other way :).

    The other quick way is you invest, get good return and again pay more toward the mortgage
    but this has risk, for risk free pay more toward it, there is no other way.

    Going any other way through various schemes you could end up owning more than paying it off :D
     
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  11. Ron Aston

    Ron Aston New Member

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    I also had a look at this, even though in principle this is how the banks make money, ie they borrow money from the reserve bank at say 0.5% or what ever the repo rate is at the time and then re-lend it out at a higher rate and simply pocket the difference.

    However, with debt free painlessly, there are no contact details, or address on their web page.
    Even the big guys IE banks have contact details on their websites.

    They claim to invest into commercial property, it's still like borrowing money from a bank to buy an investment property. The difference is, it's easier to get hold of money if you have it a redraw or offset account. Because of the level of the purchase cost they form a syndicate / partnership to give themselves buying power. I doubt if they can guarantee an 8% return, maybe in they short term with existing tenants in place, but once the leases expire, i would imagine that is how far the guarantee will go to.

    This is something you can do with a few friends and family members.

    Another point is they offer you their calculator which they claim is worth $197, this is a basic slide calculator. You can buy a real Financial calculator from about $80 and up from officeworks, this comes with instructions on how to calculate your mortgage plus many other calculations

    Another point i noticed is that debtfreepainlessly.com.au doesn't seem to be registered, i done an asic search and came up empty handed.

    THEN on top of this, if you want to cancel your 7 day trial period which cost $7, they then offer you a "Thank you Gift" for $29

    Me personally, i am going to give this a wide berth.
     
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  12. lightbringer

    lightbringer Active Member

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    Thank @Ron Aston for the details. I happen to have some experience in tracking people online, so here it is.
    Screen Shot 2020-02-07 at 12.06.49 pm.png

    And the ABN that it goes under Current details for ABN 90 095 371 433 | ABN Lookup
     
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  13. Ross Forrester

    Ross Forrester Well-Known Member

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    Take on more debt so you can get out of debt.

    That makes sense. It is like spending more at the shop to enjoy the savings.
     
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  14. Gen-Y

    Gen-Y Well-Known Member

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  15. PandS

    PandS Well-Known Member

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    5 timeless wisdoms rules from the richest man in Babylon book
    watch out for rules number #4 and #5

    1. Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
    2. Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
    3. Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
    4. Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
    5. Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
     
  16. consumerrights

    consumerrights Member

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    Looks like serviced offices, no other identification. Terms "lazy equity" and "property profits" suggest its using equity to invest in property - ie to borrow to invest in their property or investment product.
     
  17. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Typical "equity" and wealth creation. It involves borrowing money. :eek:

    If only the new credit rules would limit such bait advertising. Ditto debt recycling can also be semi harmful and can be misleading that its a benefit. Just because its property doesnt make it a good debt.
     
  18. Wen

    Wen New Member

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    Do not trust Debt Free Painlessly. Do not believe the give you money back if you can't get finance lies. He charges $3,000 an hour to speak to me. He is not giving me money back after my finance fell through. Andrew Gray is just totally not reachable, not replying emails, not answering phone calls, or replying messages. It feel like a big lie and when everything sounds too good to be true it won't be true.







     
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    What was it that you gave him money for?
     
  20. Wen

    Wen New Member

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    I paid membership fee. Hold on, they might be giving my money back. Have to see how it goes.