101 financial mortgage paydown

[Ryan Murakami]

I just watched a video today about a company called 101 financial. Most of it was basic stuff about how banks make money off our money etc. But there was something very interesting technique the company founder (Alan Akina) brought up. He didn't go into too much detail (as they charge 3900 for the "secret system"), but he called it a "Debt Checking Account." 

He claims you can pay off you mortgage in as little as a few years by putting all your money in this account (which somehow is connected to your mortgage balance) to keep the balance down, thus decreasing daily calculated interest, then pay bills using the checks that come with this account. 

To me it sounds like you would have to:

1. take out another line of credit

2. pay your mortgage off completely with that new line of credit

3. save on interest by putting your whole paycheck in right away (temporarily decreasing daily interest), then using the same line of credit to pay bills

Has anyone ever heard of this technique??

He calls it a debt checking account but I think it either has a different name or is made up. You can watch the video if you have time www.101financial.com/video skip to about 23:00

Tell me what you guys think. Does this exist? 

[Steve Vaughan]

Paying $3900 or whatever for a secret system is stupid.  If you have the $3900, pay it against your debt!

I paid off $87,000 in consumer debt over about 40 months.  I used to write 0% interest credit card checks for down payments on my seller-financed purchases.  It got up there.  I also had lines of credit and some student loans, but no car loans.

I chipped away at them one at a time, lowest $ amount to highest, and snowballed the payment into the next one.  Basically like Dave Ramsey.  I had a thermometer chart on the fridge and would take the fam to Costco for hotdogs to celebrate pay-offs as we went.  It was a 'fun' family affair! 

Lumping it all into one line of credit or into your house mortgage won't change your habits or mindset.  You'll feel like you did something when it's just a shell game.  You moved the pee. Woo-hoo.

Sell the cars and buy beaters.  Brown bag your lunch and brew your own coffee.  It's not that hard, but simple isn't always easy.  Shortcuts and secret systems are for chumps and suckers. 

Take the debts down one at a time by punching them in the face and change your life!