Text Box: Financial Equalization  “The Mortgage Killer” Copyright © 1987-95 by Charles S. Bell  I  ( All rights reserved)                                                                          This Flyer Copyright © January 2004 by Charles S. Bell I  (ARR) Text Box: Financial Voodoo!

Text Box: I have been asked so many times about other mortgage reduction plans, so I have decided to address the questions and provide the most accurate and truthful answers I can.  Usually this question refers to Manulife One, UFirst, etc.  They are known as “Money Merge Accounts”.  Marketed under different names … same animal.   The very first and most important thing that you must understand is this:  Each and every one of those plans involve paying more money out of your pocket in order to reduce the mortgage.  There is only one way to accelerate a mortgage payoff and that is to pay more ( extra ) money towards the outstanding mortgage balance.  This is true even with Financial Equalization.  That however, is not the question.  The question is: “where is the money going to come from?”    The difference between Financial Equalization and everything else is that Financial Equalization is the one and only plan that takes money you are now paying to mortgage interest and turns that into payments against the outstanding principal … period.  Where would you like the money to come from?  Your pocket or the bank’s?   How they work:  Basically you establish a HELOC of some type and you put your entire paycheck into that account and pay your expenses from it.  Whatever is left at the end of the month, if anything, is then applied to your mortgage balance.  Usually they claim interest offset, meaning that when you put in your entire paycheck, your mortgage balance is temporarily reduced by that amount and progressively increases as you withdraw or pay your bills, etc from the HELOC account.  This is supposed to provide some interest savings because of the deposit.  However it is a fact that all this saves you is around $200 to $300 a year maximum and it could end up being less than that when you take into consideration the daily compound interest on a HELOC. Bottom line, the reductions come from your discretionary cash.  Any and all major reduction in your mortgage balance comes from these extra payments out of your pocket!    These type of plans originated in Australia and have been outlawed there for over 10 years because the Australian government body that oversees mortgages has determined that the plans do not work!  Research it for yourself on the internet, there is a wealth of information available on this subject.  It is all smoke and mirrors or “Financial Voodoo” as some experts have named it.   Most people have very little discretionary income to spare. If you earn $150,000+ a year you could probably make it work.  But why pay money for something you can do yourself?  Only our Financial Equalization Plan has a Government Copyright.  We have successfully helped thousands of Canadian families become debt free and enhance their financial security over the last twenty two years. A track record we are very proud of.  You can pay less and pocket the rest.   I hope this helps to explain these plans and helps you to understand what they really are.   Charles S. Bell President, Financial Equalization Action Techniques Inc. ( F.E.A.T. Inc.)