As I continue my series of the Money Merge Account Top Twenty Questions, I look forward to sharing on question number 4 because it seems to be a bit of a challenge for many to grasp.  It is actually quite straight forward though. 

The Money Merge Account system will work in two different modes.  First, if a user has some kind of line of credit (personal, business, home equity), the system can use that as a source of funds.  Second, if a user either does not have a line of credit, or, cannot get a line of credit in today's economy, the system works perfectly well using a checking account, savings account, and a credit card. 

Question number 4 is:

Do I have to make monthly payments on my line of credit? 

When we borrow funds from our line of credit, there will be a minimum monthly interest charge that will be generated by the bank, based upon our average daily balance.  The Average Daily Balance is the total of the balance at the end of each day during a period divided by the number of days in the period.

Now, don't let that overwhelm.  Suffice it to say, it's a good thing.  I say it is a good thing because, the brilliance in using a line of credit is because we have the ability to impact the average daily balance very quickly in a line of credit, where we cannot normally impact the balance on our mortgage in a rapid, day-to-day time frame. 

With this system, the user will deposit their entire income into the line of credit. As long as a person has more income than expenses, the balance in the line of credit will go down. Since the Money Merge Account software is personalized with the users specific financial information, the software will never make a recommendation that will hurt the user or put them into a financial bind.

Since the users income will be larger than the required minimum monthly interest charge that the bank will want, there will not be an additional payment required into the line of credit. For example; if the software recommends that I transfer some funds from my line of credit to my mortgage balance, and my normal interest charge would be, say, $20; if my monthly paycheck is $4000, and I deposit that into my line of credit, that becomes my monthly payment. The bank will not ask me for an additional $20 because I already deposited $4000.

Stand by for question number 5, and, in the meantime, check out the system for yourself and see how much time and how much money you could save if you were to use it. Most people, when they see the system, get excited about it, and want to use it.