Question number 11 in my series on the Money Merge Account Top Twenty Questions has not been asked of me too often, and, it comes up from time to time.  My opinion is that most people do not ask the question because we know the answer already. 

Question number 11 is:

Why don't banks offer this program? 

Let's begin with a more basic question..."How do banks make money?" 

Up until the late 1960's-early 1970's, banks in the United States made approximately 80% of their money from one source...the margin between depositors and borrowers (they paid out x% in interest to depositors and they charged x+y% to borrowers...they kept the y%).  This is still done today, however, since 1970, the money that banks earn in this manner has been decreasing and the money that they earn from non-interest fees have been increasing.  Interest income has decreased to a point where it is now about 55% of the banks total income and the non-interest fees have increased from the 20% level to around 45% currently.  These non-interest fees are items like transaction fees, fees on checking and savings accounts, fees for safety deposit boxes and managing trust accounts, and since deregulation, they have entered the mutual fund and investment brokerage business as well as the credit card business. 

The amount of interest that a bank earns on a mortgage exceeds 100%.  If I borrow $200,000 at 6% for 30 years, I pay back $431.676.00.  That is 115.838% interest as a percent of principal. 

Let me be clear...I have no objection to anyone making money and running a fiscally sound business.  My opinion is that a large part of the current financial problem in the United States is due to our financial institutions wanting to make even more money so they extended their risk into the derivative and mortgage backed security arena.   

The Money Merge Account system is designed specifically for the purpose of helping folks pay the least amount of interest possible and getting out of debt in the fastest time possible.

My perspective is that if banks thought this product would be in their best interest, they would offer it.

Click here to let me know if you would like to see what the system can do for you.