United First Financial Money Merge Account is it a Scam?

by admin on January 5, 2010

Is United First Financial Money Merge Account a Scam? is something I am asked on often, and I have looked over it many times and I am still unsure if it’s really a scam, however what I call tell you is this. It does seem to be a pyramid scheme that relies on the constant recruitment of new members.

I have seen several articles about United First Financial and they seem to have a lot of marketing hype out which is normal, but what do they really do that is so special? I mean the people they recruit to sell you on the idea and the software has really no ability in the field. Now that does not mean everyone involved is an idiot as there are some licensed people who are involved but there is no licensing requirements. I could never do any mortgage work for you in the state of NC until I was licensed, and you can verify my old license (expired now) by going to North Carolina Commissioner of Banks and search for “Jezorek” under Loan Officer Search. However the United First Financial disclaimer states: “United First Financial, its agents and subsidiaries provide Internet web based software and support services. United First Financial does not provide accounting, tax, legal, real-estate, mortgage, or investment advice.” I thought that they where going to help pay down my debt but if they offer no type of advice then its just the software that is going to do the work?

Okay sell me the software! Wait did you say $3500 dollars for the Money Merge Account System? What the hell does it do? Supposedly it finds extra money to put toward paying off your debt so they can get paid off faster, however I am unsure why I need software to tell me that, if I have money left in my account each week (minus my safety blanket) then I have money to pay off debts so I do. Shoot, I just gave away what is apparently $3500 dollars worth of advice but I did not write it in software so anyone want to pay $3500 per instant message? I will IM you what I just said: “If you have extra money in your bank account, pay your debts off”

So what is really the program? The program is well who really knows what I can tell you is the theory of the program. In a nutshell (I guess this means if I was to print this part of the article and fold it up it should fit in a nutshell??) it’s getting a Home Equity Line of Credit in place of your checking account. This way when you have extra money that would be sitting in your checking account it is applied to your Mortgage. Now what this really means is that your paychecks will automatically go to this Home Equity Line and you will get a checkbook that will be used to pay your bills, get your groceries, and everything else, any extra money is applied to your mortgage.

I see problems with this, they are selling you this program on the basis of your to stupid to help yourself and pay your own debts off easier and saying that the number one problem is people do not have the willpower to manage money. So they are going to give you a checkbook for a HELOC and say use it for your living expenses? Wait did you know on that HELOC I can go buy a car? Pay for a renovation?

Let’s backup a little bit, a Home Equity Line of Credit is taking any equity you have in your house and letting you use it, it goes up and down based on what you use and they are commonly used for Home Improvements etc. So what you are getting when you sign-up is we are taking the Equity in your House for you to live on while your paychecks are going to pay off your first mortgage. If it sounds complicated thats because it is and way more than it needs to be.

But here is the kicker, you can not do what they say. There is no way for you to pay off your mortgage in the time they tell you, WHILE maintaining your current standard of living and without increasing your mortgage payment. The math does not allow this to happen. Even if my home was at 0% interest and 100% of my payment was going to principle it would take nearly 168 months (14 years) to pay off my mortgage.

Principle / Payment / Months
$115,500.00 / $690 / 167.39 (13.9 years)

Throw in a little interest, taxes and insurance escrow which is part of most peoples mortgage payments and presto you can not do it without increasing your monthly payments in some manner. Lets look at some other facts. If I have $150,000 dollars at 6.5% and I pull $25,000 dollars off a 6.5% HELOC to pay off my first mortgage I STILL have $150,000 dollars in debt, now you will put your whole paycheck back into the HELOC to pay the $20,000 dollars down.

But here is what is great, you can do this all on your own. Lets look at our example of $150,000 at 6.5% the Money Merge Program is going to pay this off in 8.4 years by applying $2845 a month to your mortgage (either first or HELOC depending), which is triple your payment now if you was to do this yourself what would happen. If you paid that same amount of money yourself to your first mortgage company you could pay off your mortgage in 5.4 years.

But what happens when the stupid human (thats what they think we are since we can not manage our money and we need software to do it) goes out and uses that newfound money in the HELOC for a new Car OR you are already living beyond your means?

If you are living beyond your means this is nothing more than a recipe for disaster, in fact even if you are not I think this will get you to be living beyond your means because all of a sudden your not looking at your bank account going, “Crap, I do not have any money” because you have this HELOC which will let you “Well, I will float it and pay it back next week”. Guess what you will never pay off your first mortgage, you will max out your HELOC and then you will default on your mortgage.

Financial success does not come by buying software or having someone manage your money, it comes from straight up common sense and control. If you can not control your spending and your debt then you have problems that software will not fix.

There is more to come as I find out more this is my preliminary report on what I have found and seen.

{ 4 comments… read them below or add one }

Craig Hansen February 22, 2010 at 8:15 pm

Well explained. The Money Merge Account is a scam, and anyone who tried to sell it to you has no clue about what it does. Try to have them explain the “math” used by the MMA. They can’t. They’ll make excuses, but they can’t. The math here is simple, and it is not in favor of United First Financial.

Simply put, the MMA will slow debt repayment, and UFirst knows it.

Sallymae May 20, 2010 at 3:11 am

Well, I wouldn’t call it a scam. I bought this program – for $3500, paid in full. But, it wasn’t a scam. It was a rip-off.
However, that being said, lots of things are rip-offs. The thing is, most rip-offs come with money back guarantees. Built into those high prices, you can get your money back because although they may laugh all the way to the bank, some little thing called ethics triggers a sense of doing what is right, and thus they have the guarantee of customer satisfaction. And, they give you your money back, so long as you return the stuff in the condition you bought it, or have a good enough reason – like it broke or didn’t work the way they said it would.
United First Financial though, is a “class” act. It hypes up the product with the fantastic claims and what a wonderful product and company they are. Somewhere in there, you assume with this wonderful product and company, they really have developed and are marketing this product because they care about the poor people in debt and want to help you, that they are really a great company and will bend over backwards to make sure you will have it all! No debt! No sweat! And then huge savings to boot!
If there was ever a time the caveat “Let the Buyer Beware” was most applicable, this is it. United First Financial is network marketing at its basest. Based in Utah, land of the descendants of Joseph Smith, and raking in the dough with all the protections of the State, and maybe even God.
No, not God. If it were, it wouldn’t be right to do business the way UFF does.

People, before you purchase this program because you think it will help you, read the contract. You won’t know what you are really getting until about 1 or 2 months into the program. When you start running into problems, make sure you do an online chat with support staff and have the entire chat emailed to you. When they ask you to call them on the phone because they can’t explain it to you online, record it if possible. That is when you will hear them talk about those little problems they are having that are sure to be fixed with the next version.

Also, you won’t ever get your money back. Instead, some guy in a little back office will stone wall you and throw their Limited Guarantee in your face. No money back limited to their limits. The entire contract is written to make sure they don’t have to give you back a dime, and you can’t even give your program away, or even terminate it if you want to!

Here is network marketing at its greediest. I hope this helps at least one of you to have your eyes wide open when you walk into this program – there is NO money back guarantee at all after the first 3 days of purchase. If you really feel this is the program for you, get the monthly payment option instead, so you are only out for $250 and $95/month if you find it isn’t your cup of tea.

It has become one of the bitterest cups of tea for me, but you can call me a fool.

Richard June 30, 2010 at 2:45 pm

Ok… you’re a fool. First… the author of this article should master English before he takes on finance. He should also invest in the program, use it correctly per the manufacturer’s guidelines, then offer advice to others based on his findings. I’ve been a Commercial Banker for 19 years and yes, most people do suck at handling their own money. I have this program, I am not a dealer or affiliated with the company in any way. I bought this program 4 years ago, 2 months after buying a house with a $150M mortgage (I put down $50M). I currently owe $120M and my HELOC currently has a balance of $3M, so you can see I have paid off $27M in principle in just over 4 years. This was without any added discretionary income going towards my mortgage. Could I have done this without the program? Of course, but I would have had to make an additional $6.7M in payments from my income to do so.
Best financial choice I ever made was to buy this program. Of course they can’t explain how the computer system works, they don’t know, and it doesn’t matter anyway. I don’t know how an Ipod works, but I know music comes out when I push a certain button. One other thing about the gal who replied about it being a Utah based company. Why was that even brought up? She wasn’t refunded her money my guess, was because she didn’t follow the program as outlined. Yes, it does take a little effort on your part (about 10 minutes monthly), but the guarantee is, if you follow the program, and do what the program tells you to do, you WILL get the results. If you don’t or can’t change behavior, then you obviously get what you deserve… nothing. This program is for people who are willing to make the commitment to change behavior slightly to obtain huge financial results in the end. They just need a good outline of how to do it… that is what the MMA does for you.

matt June 30, 2010 at 4:57 pm

@Richard If you followed the program as designed you did pay 6.7M of your income if not more towards your mortgage, because by design your paycheck goes to the MMA, anything left after you pay the bills is put on your mortgage, you increased the payment of your mortgage plain and simple.

However the person who is just retarded can/will use the check privileges to buy things outside of what the normally would, just like in my eyes a HELOC and credit cards are bad they like the MMA can increase spending.

You say the program is for people who are willing to change behavior? You do not need to pay someone else the initial costs PLUS interest to change your behavior, it can be done by guess who? Thats right you.

What happens when you are 8 years in and lose your job, good chance you will lose your house, the extra payments did not get you a 6 month buffer on your mortgage it is still due on the 1st. You don’t have any savings because your WHOLE paycheck was put into this account. You lost any interest you would have gained by a savings account, you are not investing your money in anything but your house and things happen, did you know the housing market crashed?

Also you say you have a $150M mortgage? Which of these houses is yours then Top 5 Most Expensive Houses in the World Hint: number 5 is 75M so I would guess you should be included.

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