Nothing could be further from the truth!

When you borrow money from a bank or lending institution, or accept a line of credit such as a credit card, you are asked to sign an agreement that says, you will promise to pay back all the money loaned to you with interest, or otherwise be in default.

What the lender doesn't bother telling you is that this "agreement" (legally defined as a "Promissory Note") is a "negotiable instrument" under the Uniform Commercial Code. This negotiable instrument has a "cash value" that is equivalent to the approximate amount of the loan. This is the source that funds your loan, not the lender's assets.

In other words, by signing a Promissory Note with the bank, you make it possible for that bank to create, with nothing more than a bookkeeping entry, the credit money that is in turn loaned to you.

If you default on the loan, or never make a single payment, the lending institution would not be out one thin dime, because the money that was loaned to you was created "out of thin air" when you signed the Promissory Note.

Is this starting to make sense to you?

You provide the lender with a signed Promissory Note. They take this Promissory Note and convert it (without your knowledge) into a cash asset that they then deposit. This has the same value as any other deposit that is made into their institution. You've now given them something that has value. They then take that instrument of value and use it as the sole source to fund your loan.

Pretty clever isn't? This is the little secret that all lending institutions hope you'll never find out about because it exposes how they actually operate.

The Good News is:

Nondisclosure of these details (and they are pretty big details when you get down to it) is your ticket to getting your bank loans quietly discharged forever.

Plus, you have the right to have any negative entries removed from your credit reports that may be associated with these loans, so this process will never harm your credit or prevent you from establishing other loans in the future.

No court appearances are ever required. The very last thing any lender wants to do is bring these very sensitive issues up in a public court setting. Lending institutions would rather just forgive the small percentage of loans that get exposed this way. All they are out is the potential of what they could have earned, had you paid the loan off. That is it. Since they never loaned you any portion of their actual assets, they walk away uninjured, and so do you.