I’ve outlined all the reasons why United First Financial’s Money Merge Account is a scam. Although it technically offers something to the buyer, it’s not worth anywhere near the $3,500 fee that’s charged for it. Consumers can pay off their mortgages faster and for free without this program.
But if you need another reason why the UFF program sucks, I’ve found it. The basic concept of the UFF MMA is a money shuffle using your mortgage and a home equity line of credit (HELOC)… which they call an ALOC. You are led to believe that you’re achieving huge mortgage savings because the UFF computer program has a secret algorithm that helps you save money. The real reason you’re saving money is that you’re prepaying your mortgage, saving you interest payments down the road.
You can’t do the UFF program without a HELOC/ALOC, though. That’s the key to the money shuffle.
Until recently. Now United First Financial is letting consumers do the money shuffle with a credit card. (Yes, you read that correctly.)
…Version 3 of the Money Merge Account can now utilize a credit card as a form of Advanced Line Of Credit or ALOC. With current market conditions limiting new Home Equity Lines of Credit and freezing existing Home Equity Lines of Credit this could not have come at a better time for homeowners.
The Money Merge Account Requires a ALOC to drive the interest cancelation account. An ALOC can consist of a Personal Line of Credit or PLOC, Business Line of Credit or BLOC, Home Equity Line of Credit or HELOC and now Credit Cards.
Most credit cards charge a cash advance or check fee of 1-3%. This is one of the main reasons Version 3 had to be updated to accept a credit card ALOC. Credit Cards are to be used as a last resort if another LOC cannot be obtained.
Let’s be honest. If you’re trying to pay down your debt, do you really need one more reason to use a credit card? Do you really want to add more to a credit card balance to play this money shuffle?
Oh, I know, I know… UFF isn’t encouraging irresponsible use of the credit cards blah blah and consumers must follow the program to get the savings yada yada.