Still Life

I am finally getting some answers to my questions and thrilled about it, too! Here is part of what one person emailed me regarding the functioning of credit cards with the Money Merge Account. David Edwards emailed me the following:

You asked a few questions here.

My understanding is that the Money Merge Account will not work with a credit card, but I’ve heard it can be amplified with a credit card. I don’t know how that works, but it seems to make sense that a HELOC would be needed as it backs up the program. It is something real, whereas a credit card is backed by nothing. It isn’t real money.

The Money Merge Account would work with a Credit Card, however it is not permitted by the company the reason for this is due to the fact that if you are late with one credit card the banks can all raise your interest rates and then it might not be as effective. You can use several types of lines of credit as the vehicle for the program. The first is a HELOC or home equity line of credit the next is a personal line of credit and the third is a business line of credit. What you have to have is an open ended line of credit with preferably an interest only payment option.

Where the credit card comes in is as a way to accelerate the program the amount of interest that you calculate is based on you keeping your balance down on you line of credit for as long as possible. If you were to charge all of your monthly expenses on a credit card and then pay that off at the end of the month in full you would accrue no interest on the credit card and have been able to keep your monthly income in the line of credit longer.

I hope that answers your question.

I am a broker and have been in real estate for the past 23 years if you or anyone has questions about the Money Merge Account please feel free to drop me a call or email me

He seems like a nice, honest guy! So I’ve provided his link here for people to visit, or, alternately, you can find it on my blogroll.

www.mortgagefreefinancial.com

Along these same lines, you can further read the comment by Travis by going to the topic HELOC, Credit Cards, and Money Merge and reading the comments.

This entry was posted on Monday, December 3rd, 2007 at 10:15 am and is filed under Money Merge Account. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.