“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 $4,000.

“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.

from what I’ve heard, you can transfer the “program” to another property for $500. But since the program doesn’t do anything worthwhile…why do it in the first place.

2) The agent I saw said you didn’t need a HELOC, you could just use a savings acccount, but I get less than 1% apy on a savings account now, so I don’t think the figures are going to bear out the promise.

You can use a credit card, savings account, HELOC, or a mattress full of cash. All this system is is really just sending a bigger payment to the bank each month, just in disguise.

3) If I have had a mortage in place for say 10 years, what is the return then?

The return of the program is negative since it is slower than what you can do on your own (just sending your leftover money to the mortgage each month). Why spend money to write a bigger check each month when you can already do that for free.

4) If you have a HELOC, what are the terms of repayment? We had our construction loan as a LOC and it was callable at any time for any reason. When we finished the house we immediately went for a regular mortgage.

The terms of repayment will be whatever the contract you sign with the bank. The HELOC is between you and the bank, it has nothing to do with the MMA or the UFF. They are just using it as a vehicle to write a check…which creates a debt which you repay with your money. Or you could just pay the mortgage directly with that money. It’s pretty much the same thing, except to $3500 fee.

Hope that helps.
calvin

I volunteer at a senior center and was asked to come and listen to a financial aganet who wanted to present his Debt/Cash management program to the seniors in the center. I had never heard of this program before, have been going some surfing and have read a little on several sites. This forum has been very illuminating. I do have some questions though.

1) Since few people actually live in one house for 30 years and most move every 5-7 years (think I read that somewhere). What hppens to the program I have paid for, do I have to sign up for and pay for another program with the new mortgage information?

2) The agent I saw said you didn’t need a HELOC, you could just use a savings acccount, but I get less than 1% apy on a savings account now, so I don’t think the figures are going to bear out the promise.

3) If I have had a mortage in place for say 10 years, what is the return then?

4) If you have a HELOC, what are the terms of repayment? We had our construction loan as a LOC and it was callable at any time for any reason. When we finished the house we immediately went for a regular mortgage.

Thanks for your input. Those who attended this presentation were asked to let the center’s director know what we thought ot it. Quite frankly, most of the time I couldn’t follow the guy, terms were too vague, same talk about this very complicated algorithim involved, and the lack of personal responsibility or motivation as the reason to plunk down 3500.00. And I am an accountant, tho not in the mortgage business. I did a mortgage table, 100,000, 30 years, 6% and plugged in an extra payment of 3500 with the first payment and shaved 32 months and over 15,000 of interest off the end.

Bottom line is, I won’t recommend the center allow this guy to present this mlm scheme. And, spend less than you earn, it always works.

The very fact that you email them and they say they have absolutely nothing to do with the selection of nominees, the judging, or the award speaks volumes. They want NOTHING to do with the UFF.

Face it, you chose a bad argument. Try something else…try the savings….oh wait, that’s already been shown to be less than what anyone can already do for free. Try the marketing….no, not that one either…..we’ve already shown it to be misleading at best, fraudulent at worst.

The only winners with the UFF are those selling the product. And agents and principals are leaving this company left and right.

Game over.