When we think of having or gaining wealth, I don’t think anyone has a problem. When we think of buying something with our wealth, usually no problem either, unless we are buying something that we don’t have all the money for at the moment that we can pay off over time; that we call affordable debt. Or if we buy something or a bunch of stuff over time that we can’t pay for the minimum payment; that’s called trouble. Of course debt is associated with its corresponding interest: as a formula the original cost of an item + interest for borrowing funds from a lender = the true cost of an item. The Money Merge Account is a program that consumers can use to determine the true cost of their total consumer debt and individual credit purchases, and provides for payoff of consumer debt , mortgage acceleration and credit card debt relief in a much faster way, enabling savings of large amounts of interest.
An online dictionary describes the origins of the term, debt, from the 13th century English, French and Latin: “to owe on what you have.” Debt is defined as: “1 : sin , trespass 2 : something owed : obligation <unable to pay off his debts> 3 : a state of owing <deeply in debt> 4 : the common-law action for the recovery of money held to be due”
My on-going search of the dictionary describes the origins of the term, interest, from the 15th century, some 200 years later, also from English, French and Latin: “to be between, make a difference, concern” <inter>, to be or “is” <esse>; the two words together would have been “interesse.” Interest is thus defined as: “1 (a) :right, title, or legal share in something (b): participation in advantage and responsibility 2 (a): a charge for borrowed money generally a percentage of the amount borrowed (b): the profit in goods or money that is made on invested capital (c): an excess above what is due or expected”
An online encyclopedia describes this history. “In the Middle Ages the … Church attempted to enforce certain moral commands adverse to commercial transactions. The taking of interest for loans of money was considered income without true work and therefore sinful and prohibited. There was also an attempt to generalize the idea of a just price [and] influenced the law and the economy…In Old English law, the taking of any compensation whatsoever was termed usury. With the expansion of trade in the 13th century, however, the demand for credit increased, necessitating a modification in the definition of the term. Usury then was applied to exorbitant or unconscionable interest rates. in modern law, the practice of charging an illegal rate of interest for the loan of money.”
So what seems to have been going on in the Middle ages, still goes on today: people, businesses, and nations wanted or needed to buy stuff that they were not able to pay for at the moment, originally considered a “sin or a trespass” by church standards. Becoming commonplace, the need for borrowing created common law actions for lenders to recover the money lent. Over the following 200 year period, the development of the practice of charging interest resulted. This too was considered sinful by church standards as “income without true work.” So it was sinful to borrow and it was sinful to charge interest on the loan to the borrowers. In olde England, the taking of any compensation whatsoever was originally described as usury and “considered excessive and unconscioanable”. But also by common practice and the growing familiarity of both village- and overseas trade, allowed for modification of everyday interest to be acceptable and usury to be reserved for excessive circumstances; the latter may or not be illegal at this time.
So here we are today as consumers with loans, mortgages on our homes, consumer debt on vehicles, education, medical, luxuries and expensive toys, and credit cards to pay for our most common needs. And the interest on it all. The true cost, one could hardly figure on their own. The Money Merge Account is a program that consumers can use to determine the true cost of their total debt and individual credit purchases, and offers loan and mortgage acceleration and credit card debt relief in a much faster way. Consumer loans and credit cards charge a simple form of interest with a proportionate mode of repayment. With mortgage interest it is more complex. For example, the interest cost of a typical mortgage today is roughly one and a half times the amount borrowed; a $100,000 loan has about $150,000 interest over a 30 year term – the true cost then would be $250,000. The Money Merge Account may help a homeowner potentially save tens of thousand of dollars in the size of this loan. In the manner that mortgages are amortized it takes about 21 years of the 30 year term to pay off half the debt. Equally astounding: in that same period two-thirds of the total interest is paid off. But most people don’t live in their homes or have the same loan for 21 or 30 years; they refinance in 5-7 years, or they relocate to a new home, so they pay mostly interest and just a bit of principal in that time. A financial analysis can help us determine if refinancing will save us more compared to a mortgage accelerated debt payoff system using the Money Merge Account.
A free financial analysis is offered to demonstrate the true cost of one’s total debt, how fast the Money Merge Account can help in paying all debt off, and how much interest can be saved. Typically, total debt can be paid off in 1/3 – 1/2 the time, with proven interest savings of tens- or hundreds of thousands of dollars in qualified cases and will vary by individual circumstances.
Tags: credit cards, debt, financial analysis, interest, loan, Money Merge Account, mortgage, true cost
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