I know some of you are going to be offended, but I'm really starting to get angry with some of these self righteous MMA posters.  A post that I wrote more then a year ago is still getting anonymous posts from angry MMA acolytes who dislike the fact I call into question the efficacy of their program.

When the program began, they whole trick was to show home owners how to use their equity in a unique way to leverage down their debt in an eye popping short period of time.  They made it sound easy...just get a HELOC (equity line), and our wonderful computer will tell show you the way to debt free living!!

HAH!!!  just pay your $3500 and it can be all yours Mr. Homeowner.  But not more then a year later they are getting a letter from Wells Fargo or Countrywide.  Mr. Homeowner, we are now calling your Equity line due, and you may no longer use the available credit in this line of credit, we regret this inconvenience but according to the terms of the contract you signed, we can now increase your rate and require that you treat it as a second mortgage.

So what do they do next, they tell you to use credit cards to leverage down the debt!!  Hello, pass the TUMS because I'm really getting agitated.  Let's now go from 9-11% HELOC's to 19-28% credit cards!  Oh boy, this just get's better and better my friend (had to throw in the McCain reference).

Now the math suggests that this program works.  I'm not going to argue that because I've looked at the program closely.  Math doesn't lie, and computers are fairly accurate.  They don't have an agenda to push, or they are not worried about how much money they are making selling their theories.  The problem is that a computer isn't paying the mortgage each month.

Yep everyone, life does happen to all of us. We're flesh and blood, we're emotional and we can make some real bad choices from time to time.  Very few are disciplined enough to stay to the task at hand, and this program then becomes a dagger in the heart if you don't follow it religiously.  Perhaps this is why it's almost become a religion with some of it's strongest adherents.

One ther reality folks, one that I'm seeing more and more as times get rougher.  Many of these programs require the borrower to payoff the mortgage over 5 to 8 years.  The problem is we're actually in year's 2 and 3 for most of the early followers of this program.  The sad reality is that real estate values have plunged, and some of these people have actually realized very little in terms of paid down equity.  The scary thing is many of them still carry mortgages that are several years of being paid off.  They could easily lose their job's in the coming months due to businesses getting creamed in the upcoming recession.  Main street has yet to feel the full effect of Wall Street's troubles.  Don't kid yourself it's coming with a vengeance!  So he who holds even a small mortgage, with no income, and a HELOC that has been shut off by the bank is in big trouble.

That's why I ALWAYS suggest my clients put away 6 months income!  I suggest they payoff their credit cards, not mark them up in some mortgage merge scheme.  If they are still "heck" bent on paying off the mortgage, then great...MAKE DOUBLE PAYMENTS!  Look, if you really want to be truly debt free, then I'd save my money and buy one of Dave Ramsey's books.  That guy knows how to get out of debt, and it doesn't take some fancy $3500 dollar computer program. It just takes common sense people!

Lest I forget, please read my friends blog, this is much more effective describing the reasons not to get an MMA.

Robert Ashby's Blog