Feedback on Money Merge Account

Hi S.,

Even though I never heard of the "Money Merge Account" approach, I would run the other way - fast! All these "quick and easy ways to reduce your debt" approaches are usually just scams. If the approach is so complicated to understand, then that should be the biggest indication to stay away.

Another reader mentioned Dave Ramsey's "The Total Money Makeover". If you haven't heard of Dave, I would HIGHLY suggest reading this book. Dave Ramsey also offers a 13 week course called Financial Peace University (FPU)that will teach you not only how to get rid of debt, but also how to build wealth the common sense way. These courses are usually offered at your local churches, as well as at other community locations. I teach the Dave Ramsey FPU class at my church and have helped many families get rid of lots of their debt, become better money managers, and save for college and retirement. The "baby steps" that are taught don't end when the class ends; it is up to the individual/couple to continue the baby steps afterwards.

Debt is only the symptom and a lack of money is not the cause. Personal finance is 80% behavior and 20% head knowledge. Change your behavior and way of thinking about money, and you will see major positive rewards. The great thing about Dave Ramsey's teachings is that his principles are nothing new...they have been around for decades. This is why I was attracted to his teachings since what he teaches is exactly what my dad and mom taught me. Now, I am blessed to be able to teach others.

One question to ask is...is this family member completely out of debt? More often than not, people who are not out of debt and don't have a handle on their money matters are the ones that give out lots of advice.

Hope this helps!
K.

p.s. One more thing S. (and for everyone else), if you want to find all FPU classes in your area, go to http://www.daveramsey.com/ and type in your zip code.

As I said before, this is the BEST investment you could ever make since your ROI (return on investment) is astronomical if you stick with it. Let us know what you and your hubby end up doing. I am always here as a FREE resource if you need a sounding board. Blessings to you always! :>)

3 moms found this helpful

S.~

I would be wary of doing anything with your money that you do not completely understand. My husband and I started using Dave Ramsey's method of Financial Peace (www.daveramsey.com). He teaches using the debt snowball. You line up all of your cards...smallest balance to the largest. You pay extra on the smallest bill until it is paid in full and then move to the next debt. When you start attacking the next debt, you pay the amount due PLUS what you were paying on the first bill. For example...Lets say you have a Visa with a $250 balance and a $20 minimum payment, a MasterCard with a $700 balance and a $25 minimum payment and a personal loan for $2500 and a $75 minimum payment. You start with the Visa, figure how how much extra you can pay per month (lets use $25 for our example). You pay the $45 per month towards the Visa until it is paid in full (then CUT IT UP and CANCEL THE CARD). Your MC has a $25 minimum pmt plus the $45 from your Visa...your new payment to MC is $70 until it is paid in full. You then apply that towards your personal loan w/ a new payment of $145.

Hope this helps some...since my husband and I started this plan in January, we have paid off almost $9000 in debt...it just takes a little discipline! :-)

3 moms found this helpful

Hi S.,
I don't have any personal knowledge of this at all but I went to where I always go when I hear about something that will help financially....Daveramsey.com. Me and my husband heard of him and started using his plan about 5 months ago and we are now credit card debt free. We owe on the house and car and should have the car paid off this next income tax return. We were not very far in debt (about $3000) but we were terrible on a budget and that's actually where it helped.
We were transferring money every month from our savings and just depleating it, just like we did every other year. Anyways, he has a great plan on how to incorporate his plan from budgeting, paying off bills and saving. This is what he had to say about Money Merge account but I could only find it involving mortgage questions but I'm sure it still applies. He also has a radio show from 1-4 on 550am and tons of great books and stuff.

THIS IS FROM daveramsey.com
Money Merge Mayhem
QUESTION: Matthew was told by someone about the money merge account (from United First Financial) that helps you pay extra on your mortgage, and that Dave thought it was a good idea. Does he? Not in a million years, explains Dave.

ANSWER: I would absolutely not pay for this. Bad idea! The problem with these money merge accounts is that you buy the software for $3,500, and it manipulates your bills using a home equity line of credit to pay extra on your mortgage. There are 2 problems with this. The first is that you don’t need to pay $3,500 to manipulate your bills; you can find extra money to pay on your mortgage by writing it down on a notepad!

The second thing is that these people are telling you that you can pay off your home with no change in lifestyle. That’s a lie. You have to sacrifice to pay off your home. If you make $4,000 a month and want to pay $1,000 extra on your mortgage, you have to live on $3,000. You HAVE to lower your lifestyle. No software combined with a home equity line of credit will make that happen. There is no magic pill to getting out of debt. The key is living on less than you make.

2 moms found this helpful

I don't know anything about this specific thing, but I'd be suspicious because I don't see how you'll get ahead by using a line of credit to pay down debt. You'll still be in debt, won't you? I would suggest going to daveramsey.com and seeing what he thinks about this.
I paid off a five year loan in one year just by throwing every extra penny at it and being careful with expenses.
Good luck.

2 moms found this helpful

Hi, Sorry I have never heard of this type of account before. I just wanted to let you know what the previous responses said about Dave Ramsey and FPU is exactly right..... My hubby and I love it. Its very easy and covers all financial issues not just debt reduction. Its working for our family!
Good Luck!

2 moms found this helpful

S.,

My church is offering FPU (Financial Peace University) starting this Sunday, August 24th. Go to www.hpf.org for more information.

A.

1 mom found this helpful

I haven't heard about it, but it sounds like a fancy consolidation loan. If it is a line of credit that is supposed to help people pay off debt then whoever is doing it is making some money for sure! But I must say I don't know about, so I won't dog it out too much! However if you are looking for an awesome way to pay down debt I wanted to recommend the Total Money Makeover by Dave Ramsey. My husband and I have paid off a crazy amount of debt since we started in January and the system just rocks! I am a SAHM and since we have gone to one salary we have actually paid off more debt that when I was working and we weren't on this system. We are constantly amazed at how much more freedom we have without any credit card debt and we just paid our truck off last month. Anyway, the system does work if you learn how to do it and commit to it. It also doesn't suggest that you to eat beans and rice and do nothing fun ever, which I really like. The book is available at any major bookstore or online. Best wishes to you whatever you decide!! If you want more detailed info, feel free to msg me, I love to talk about this subject because I know how stressful debt can be :)

1 mom found this helpful

Hi Stacy .. be VERY CAREFUL. First of all, if you don't understand a product because its complicated, its okay to ask questions. Don't feel pressured by a relative. This company is aggressively signing up people, perhaps your relative is on commission with this company? The Merge account is tied to a line of credit, usually with your home equity or a credit card. "Google" the company and you'll other's experiences with the product.

If you are interested in a debt program, check out a reputable group like Consumer Credit Counseling.

Good luck!

1 mom found this helpful

Buy the book, "America's Cheapest Family", it is awesome. They explain to you how to pay off your debt without an agency or using another loan to pay off loans. These people are amazing and it is helping me financially recover from a divorce.

1 mom found this helpful

Personally I would never get into anything I did not understand. You might find yourself in a worse situation. There are some good books out there that can give you info on how to get out of debt. Dave Ramsey has some of the best.

I don't know about that specific account. But, we had a line of credit similar. And you do pay off much faster. But, you pay more per month to do so. Also, beware that you don't start up again with credit cards. You are tempted with those 0 balances and think that you will pay it off. If you start that, then you will be worse off than before.

If you don't undertand it -- don't do it! Always remember -- if it sounds too good to be true, it is.

You can contact your credit card companies direct to arrange a smaller payment plan, even request a lower interest rate. I highly recommend Dave Ramsey's Financial Peace -- it is a great 13 week program to teach you how to get out of debt and gain control over your finances. I have used it -- not fancy promises...the only cost is the $90.00 for the workshop. Has helped a lot of people I personally know.

S.,

Now more than ever, if you do not understand financial paperwork and exactly how you are responsible - DO NOT do it. Look at what is happening with the credit market and the people that thought they were signing one thing and it turned out to be another.

get a book on debt reduction, get quicken for budgeting, track your expenses, take a seminar, talk to a financial advisor.... whatever just be very careful with any types of lines of credit. they are usually a variable interest rate which is fine now because the feds cut the rates. but if they start to creep up you could be in worse shape very quickly.

good luck, be careful and question everything. never sign unless you have full understanding and are comfortable with the financial choices you are making.

I am not familiar with this, but i do know that borrowing against your home to pay down other debt is usually a bad idea. If you can't keep up the payments you lose your home.

I would go to Suze Orman's website and see if she has any information.

Getting into debt to pay off your debt doesn't make any sense at all, no wonder you are confused. I would suggest for you to check out Dave Ramsey on the Fox business news channel. His show is on every night at 7PM and he offers free financial advice (no selling no gimicks).

He also has some great books and budgeting tools available, you can find them at any book store or at his web site www.daveramsey.com.

He has helped us get completely out of debt (except for the house) in only a few years. Previously we tried debt consolidation, and lines of credit and all it did was get us deeper into debt!

Do not sign up for anything you do not understand, especially when it comes to money and finances. Always ask the person you are talking with about their commission, fees and interest on the product. Many financial institutions make alot of money on the backs of the financially strapped. Buyer beware.

I checked this MMA out and it cost $3500 for something of dubious value. I definitely wouldn't do it. If you just apply 1 or 2 extra payments to your mortgage each year (instead of buying some complicated thing), you should be able to pay it off in half the time. You should check out Ramsey's books as well and figure this out for yourself. Then you'll be in more control of your own finances forever.

S. - BEWARE!!!

Please read this Forum..
http://www.fatwallet.com/forums/finance/709007

My husband is a Certified Financial Planner in New Braunfels. Let me ask him what he thinks about it. I'll respond back in a sec. B.

I was going to respond but I see that most of the wonderful ladies on here have the same opinion - check out Dave Ramsey for a good explanation (www.daveramsey.com). There is no need to spend $3500 for special software that will do nothing more than you could do on your own by paying extra principal each month. Regardless of whether you do decide to do it, absolutely do not agree to it until you understand it 100%.