Comments on: Money Merge Accounts – Are They Real and Do They Work? http://www.finetunedfinances.com/2009/05/money-merge-accounts-%e2%80%93-are-they-real-and-do-they-work/ Make Your Wallet Run Like New Again Mon, 08 Mar 2010 23:23:52 +0000 http://wordpress.org/?v=2.9 hourly 1 By: JimmyDaGeek http://www.finetunedfinances.com/2009/05/money-merge-accounts-%e2%80%93-are-they-real-and-do-they-work/comment-page-1/#comment-730 JimmyDaGeek Fri, 03 Jul 2009 17:02:35 +0000 http://www.finetunedfinances.com/?p=756#comment-730 “Using the banks money” – We started out by taking out a loan called a mortgage, using the bank’s money. Now that it’s time to pay the loan back, we need to get the money from somewhere. Usually, it comes out of our paycheck. But MMA claims that if we use a HELOC, we are not using our money anymore, we are using the bank’s money. But, wait, we started all this by using the bank’s money to take out a mortgage and now we have to pay it back. So that means if we use the bank’s money by taking a loan out of the HELOC, we have to pay that back, too. So all we did was postpone having to pay the bank back by using the HELOC money to pay the mortgage. We still have to pay the HELOC back. Where is that money going to come from? Out of our paycheck. So why should we spend $3500 on MMA to play a money shell game with a HELOC? “Interest cancellation” – MMA claims that by loading up the HELOC and running our paychecks through the HELOC, we reduce the balance so much that we save lots of money that way, and that alone is worth $3500. OK, so how much can we save? Well, let’s assume our mortgage rate is 6%. That means each month, we are charged 1/2% on our mortgage balance, the whole balance. But if we are using interest cancellation, the most that we can save is whatever our monthly salary is. So, if we bring home $5,000, the largest HELOC balance we can offset is $5,000. How much will that save? $5,000 times 1/2% is $25. That’s $25 per month or $300 per year. So MMA wants you to spend $3500 upfront to save $300 per year. Do you know how much interest you would save if you just put $3500 towards your 6% mortgage? OVER $16,000 and 16 months. (Not $4000 as I said in a different post) “Factorial math” – MMA claims no one except a computer can figure out the best possible way to pay all your bills and debts because of all the possible combinations. LIES. There is only one SIMPLE BEST way to pay off all your debts. You pay off the highest interest debt first and work your way down using a DEBT SNOWBALL. It only needs addition and subtraction. “Using the banks money” – We started out by taking out a loan called a mortgage, using the bank’s money. Now that it’s time to pay the loan back, we need to get the money from somewhere. Usually, it comes out of our paycheck. But MMA claims that if we use a HELOC, we are not using our money anymore, we are using the bank’s money. But, wait, we started all this by using the bank’s money to take out a mortgage and now we have to pay it back. So that means if we use the bank’s money by taking a loan out of the HELOC, we have to pay that back, too. So all we did was postpone having to pay the bank back by using the HELOC money to pay the mortgage. We still have to pay the HELOC back. Where is that money going to come from? Out of our paycheck. So why should we spend $3500 on MMA to play a money shell game with a HELOC?

“Interest cancellation” – MMA claims that by loading up the HELOC and running our paychecks through the HELOC, we reduce the balance so much that we save lots of money that way, and that alone is worth $3500. OK, so how much can we save? Well, let’s assume our mortgage rate is 6%. That means each month, we are charged 1/2% on our mortgage balance, the whole balance. But if we are using interest cancellation, the most that we can save is whatever our monthly salary is. So, if we bring home $5,000, the largest HELOC balance we can offset is $5,000. How much will that save? $5,000 times 1/2% is $25. That’s $25 per month or $300 per year. So MMA wants you to spend $3500 upfront to save $300 per year. Do you know how much interest you would save if you just put $3500 towards your 6% mortgage? OVER $16,000 and 16 months. (Not $4000 as I said in a different post)

“Factorial math” – MMA claims no one except a computer can figure out the best possible way to pay all your bills and debts because of all the possible combinations. LIES. There is only one SIMPLE BEST way to pay off all your debts. You pay off the highest interest debt first and work your way down using a DEBT SNOWBALL. It only needs addition and subtraction.

]]> By: Money Hacks Carnival 68- Stanley Cup Final Edition | Financial Highway http://www.finetunedfinances.com/2009/05/money-merge-accounts-%e2%80%93-are-they-real-and-do-they-work/comment-page-1/#comment-639 Money Hacks Carnival 68- Stanley Cup Final Edition | Financial Highway Wed, 10 Jun 2009 15:58:44 +0000 http://www.finetunedfinances.com/?p=756#comment-639 [...] presents Money Merge Accounts: Are they Real and do they Work? posted at Fine-Tuned [...] [...] presents Money Merge Accounts: Are they Real and do they Work? posted at Fine-Tuned [...]

]]> By: L2G http://www.finetunedfinances.com/2009/05/money-merge-accounts-%e2%80%93-are-they-real-and-do-they-work/comment-page-1/#comment-540 L2G Mon, 18 May 2009 14:42:20 +0000 http://www.finetunedfinances.com/?p=756#comment-540 Great post. The failings of the Money Merge Account (and other mortgage accelerators) and sometimes near deceptive marketing of some of the MLM agents that push the "magic" of them without even understanding the true math behind them have been covered in many places on the web. James Oates III, I see you are a UFF agent yourself. Have you responded to C. Hansen's post to your blog that you have yet to publish? Here is a link to refresh your memory: http://www.scam.com/showthread.php?p=754599#post747464 -L2G Great post. The failings of the Money Merge Account (and other mortgage accelerators) and sometimes near deceptive marketing of some of the MLM agents that push the “magic” of them without even understanding the true math behind them have been covered in many places on the web.

James Oates III, I see you are a UFF agent yourself. Have you responded to C. Hansen’s post to your blog that you have yet to publish? Here is a link to refresh your memory:

http://www.scam.com/showthread.php?p=754599#post747464

-L2G

]]> By: James Oates http://www.finetunedfinances.com/2009/05/money-merge-accounts-%e2%80%93-are-they-real-and-do-they-work/comment-page-1/#comment-489 James Oates Sat, 02 May 2009 17:51:15 +0000 http://www.finetunedfinances.com/?p=756#comment-489 What a wonderful post...thank you for clarifying those issues. Warmly, Jim www.JamesOatesIII.com What a wonderful post…thank you for clarifying those issues.

Warmly,
Jim
http://www.JamesOatesIII.com

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