Part 30? Wow, it seems like yesterday that I started this series. The good news from where I sit is that UFF has a defector problem. You see, any MLM (multilevel marketing) sales requires a serious dedication to recruiting new salespeople. I guess it’s tough to sell a $3500 piece of software that has you in debt a bit longer than simply prepaying on your own.
Back in October I wrote about a mortgage broker who was a client of Jubilee (Jaime Buckley’s company) and he was happy with his purchase, but didn’t understand how interest worked, despite the fact that he is a mortgage broker himself. If a broker doesn’t understand, what chance do most people have but to believe the claims of a scam artist? Funny thing, though. Jaime and his friends at Jubilee have already moved on to their next deal. I don’t have all the details, but instead of MMA (Money Merge Account), it’s now a MCA (Mortgage Checking Account.) I trust it has ‘factorial math’, ‘sophisticated algorithms’, etc, but is different than the UFF product. As Jaime owned and moderated the UFirst Forum (now down), I wonder if he’s going to pass the torch.
It will soon be time to move on, I believe I am close to exhausting all my thoughts on this topic. The math is simple, the product is a waste. The arguments in its favor quickly turn away from numbers and logic, to long rants about anything but. Until next time.
Joe
Joe, your series has been instrumental in helping people avoid the MMA. A little knowledge goes a long way, doesn’t it?
Thanks for your help.
Joe–I really appreciate all the time and research you have invested in MMAs. I have a friend who is an agent and has been telling me about it. My friend is not a liar and he’s not crazy. However, as you mention many times, he uses only hyperbole to sell the product, but I believe he truly believes it helps people. However, he can’t explain to me how it does what it does. I have the analysis sheet that he gave me and it is compelling, which is why I haven’t said no yet. If it can do what this analysis sheet says it can do, with no HELOC, and only using my checking and savings account and a credit card, it really is an amazing product. But I’m not going to buy it until somebody can explain it to me. It proposes to take my $138,000 30-yr mortgage (5.5% APR) that I just got in December, and pay it off in 11.8 years with only $137 of discretionary income a month. That doesn’t make any sense. If I make an extra payment of $137 a month, a regular amortization calculator shows it would cut my mortgage down to 20 years, but with the same discretionary income per month, MMA can beat it by over 8 years?? I saw your previous posts where you beat MMA by doing it yourself–can you determine a way to beat 11.8 years with only $137 discretionary per month. My friend emphasizes that MMA doesn’t rely on discretionary alone, but several other factors that, again, he can’t explain. I feel like I can’t say yes, but can’t say no either, not with this kind of possibility. Has anybody contacted you and stated they bought the product and it didn’t do what the analysis sheet said it could do? UFirst guarantees it or your money back. $137 x 12 is $1644. Yet, somehow, this analysis sheet pays an additional $7k-$10k in principal per year. I asked my friend how this was possible without adding a huge amount of debt to the credit card? He said my credit card would be paid off every month in full. I’ve seen many posts where people say you can do yourself for free what MMA wants $3500 to help you do, but there is no way I can figure out how to pay off $138,000 in 11.8 years with only $137 discretionary. I’d be happy to send you the analysis sheet if you want. Take care,
Jeff, let me be really objective here. $138K, 5.5%, 11.8 years, would requie $1326.95/mo payment. This is an extra $543.40/mo that has to come from somewhere. I’d love to see the sheet, and will email you this reply as well. Even in the best case, MMA can capture a high rate on your idle cash, so if you have $10,000/mo coming and going, MMA will gain you $50/mo. That’s an exaggeration, but nowhere near the $500+ your friend is claiming. You friend is misguided. He should not sell something he doesn’t understand.
Joe
Jeff,
The answer lies in the money you’re using to service your other debts. The MMA sends those monthly funds to the mortgage one those smaller debts are retired.
Assuming Joe is right above (not a stretch), the MMA analysis results require an extra $543 per month and you only have $137, then in round numbers, your other debts (car, credit cards, etc.) consume at least $406 per month.
Nothing here is rocket science.
Post your MMA analysis if you want an exact reason to take back to your friend.
Regards,
Craig