Submitted by Jason (not verified) on Sat, 2007-11-10 17:02.
Last night ABC news broadcasted a news report so I became curious probably as many others would. I checked out the website(s) ABC.com led me through and then continued this research any controversial data and evidence supporting both sides.
Here are my personal conclusions:
I think that the Money Merge Account is a step in the right direction to help consumers start paying for big ticket items. I’m not saying this program is perfect, but I believe that there are many individuals out there that have stagnant money lying in accounts. This program centers its gravity by focusing on managing individuals’ cash flow. And yes there are many individuals out there sitting with blocks of money that could be better managed especially when they have a mortgage.
I do have on major concern when thinking over how the line credit ties in with certain market conditions. One way is like Tony mentions is overlaying the interest from the mortgage with interest in the line of credit. If the line of credit rate is close to or lower of course you make out better, but if the line of credit is on the higher end more individuals will start to see financial troubles too – hence the housing credit market at current.
The Target – Why not treat the regular checking account (at a low positive balance – like bank required minimum balance) as the target focus and keep the line of credit as an emergency only funds source. If you keep a balance on a line of credit you are still spending extra money and many people may not notice this as much. Does the MMA keep track of how much interest and other expenses you pay out of the line of credit? Why not forecast this a little more clearly in the presentation. In addition, a line of credit gives you no tax return breaks like a traditional mortgage gives you.
Again, I am not saying this is a bad program. It is much better than sitting back and paying the traditional mortgage their basic one-time monthly payment. But, I do see some room for improvement and yes that would take extra time and money to develop. We are in the computer age and we will get there. Question is and only you can this individually – is it time to jump on the band-wagon yet?
Saw this on abc.com last night - Considering this program
Last night ABC news broadcasted a news report so I became curious probably as many others would. I checked out the website(s) ABC.com led me through and then continued this research any controversial data and evidence supporting both sides.
Here are my personal conclusions:
I think that the Money Merge Account is a step in the right direction to help consumers start paying for big ticket items. I’m not saying this program is perfect, but I believe that there are many individuals out there that have stagnant money lying in accounts. This program centers its gravity by focusing on managing individuals’ cash flow. And yes there are many individuals out there sitting with blocks of money that could be better managed especially when they have a mortgage.
I do have on major concern when thinking over how the line credit ties in with certain market conditions. One way is like Tony mentions is overlaying the interest from the mortgage with interest in the line of credit. If the line of credit rate is close to or lower of course you make out better, but if the line of credit is on the higher end more individuals will start to see financial troubles too – hence the housing credit market at current.
The Target – Why not treat the regular checking account (at a low positive balance – like bank required minimum balance) as the target focus and keep the line of credit as an emergency only funds source. If you keep a balance on a line of credit you are still spending extra money and many people may not notice this as much. Does the MMA keep track of how much interest and other expenses you pay out of the line of credit? Why not forecast this a little more clearly in the presentation. In addition, a line of credit gives you no tax return breaks like a traditional mortgage gives you.
Again, I am not saying this is a bad program. It is much better than sitting back and paying the traditional mortgage their basic one-time monthly payment. But, I do see some room for improvement and yes that would take extra time and money to develop. We are in the computer age and we will get there. Question is and only you can this individually – is it time to jump on the band-wagon yet?