Money Merger Account – Using the banks own math against them to eliminate your debt
One key factor that keeps most people in debt and paying off credit cards or making mortgage payments for 30 to 40 years is the ugly but profitable effect of accumulating interest on the loan balance. It is these balances, on which banks calculate interest and finance charges daily, that keep you from eliminating debt and financial freedom. This compound interest is what keeps banks and lenders out of business, but the good news is that you can use the same math that banks use to turn a profit and turn the tables in your favor to help you pay off your mortgage or debts faster. This process can be achieved by creating what is known as a money pool account.
What is a money merge account?
A money-merging account is a system that can be used to reduce the daily balance on any loan, which will result in a reduction in interest on the loan, which in turn will make it possible to pay it off faster due to less interest owed and more money is applied to the principal. These accounts are usually set up using a HELOC or home equity line of credit, which in simplest terms is a credit card-like line of credit secured against the equity in your home.
How does the account merge system work?
What happens when you set up one of these accounts is that you start depositing money into a regular checking account. You will then transfer it to the pooled account and say how much is deposited. You will then adjust each month depending on your situation how much extra to apply to your mortgage or loan balance and continue paying your bills as usual. The effect of using this system will allow the interest rate to decrease daily.
This system can be implemented using math and paper, but unless you are really good at math and keep perfect records, you are better off using software to calculate the complex algorithms and keep records of your income and expenses.
But I heard it’s a scam…
Unfortunately, the account merging system has gotten a bad press from people who simply don’t understand how it works or are just trying to protect their own financial interests.
In fact, the concept of the system has been around for a long time and originated in Australia. It has been used by thousands of people around the world to accelerate mortgages and pay off loans early.
Part of the reason it gets a bad rap is because one of the main promoters of the system is an MLM company called United First Financial or UFF, and people associate MLM with ponzi schemes or scams, so many are quick to judge based on the model of MLM of distribution.
United First Financial is not the only company that provides the necessary software to do the calculations. They charge $3,500 for it, but it can be had for thousands of dollars less than smaller competitors with similar systems.
There are several advantages and disadvantages to using a money merge account. Using just simple math proves that the system works on paper with its power to lower interest rates, but for some people this may not be an option if they are unable to maintain tight control over money, especially if it is freely available to spending. For those who are interested in paying off their mortgage or debt as quickly as possible and are disciplined enough to control their monthly budgets and cash flow, a money pool account should be an option on the table for you to consider if interested in mortgage acceleration or debt elimination systems.
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