How To Maximize Interest Cancellation and Float the Banks Money
Here is some great information on interest cancellation and floating the banks money.
STOP giving the bank all your money in interest every month! Here are a few strategies to keep more of your money in your pockets.
Interest Cancellation- This can be obtained by simply using an open-ended line of credit such as a credit card or a personal, business or home equity line of credit. A home equity line is best a generally the interest is tax deductible. Open-ended account simply means you can use the account UP TO the credit limit anytime you want and pay money into it at any time all the way DOWN to a zero balance. These accounts are calculated on an average daily balance. Because of that, you can force the bank to charge you a much lower interest rate by depositing your income into this account and paying bills out of the account. This in effect drastically lowers the average daily balance. Here is an example of how powerful this can be:
Example: $10,000 Line or Credit Card and deposits are $5,000/mo. and bills are $4,000/month.
Starting $5,000 Balance on the line +4,000 Pay Bills= $9,000 balance then
Deposit income of $5,000 is 9K-5K = $4,000 ending balance (Month 1)
Starting $4,000 Balance on the line +4,000 Pay Bills= $8,000 balance then
Deposit income of $5,000 is 8K-5K = $3,000 ending balance (Month 2)
Starting $3,000 Balance on the line +4,000 Pay Bills= $7,000 balance then
Deposit income of $5,000 is 7K-5K = $2,000 ending balance (Month 3)
Starting $2,000 Balance on the line +4,000 Pay Bills= $6,000 balance then
Deposit income of $5,000 is 6K-5K = $1,000 ending balance (Month 4)
The minimum bill every month would be like $40, but you are giving them $5,000 every month. Remember, if you need extra money, just take it from the line of credit.
You are affecting the interest so much that you aren’t practically paying ANY interest. Remember, its not what they charge you that matters, it’s what you actually pay (Effective Interest). You can control this by how you use these accounts. You can either use them for the banks advantage, or yours. It’s up to you!
When your account gets too close to a ZERO balance, you can no longer deposit your income into the account, because you don’t owe anything. This is when the most powerful financial tool ever made for debt elimination, the Money Merge Account by United First Financial, may help you and kick in and tell you how much to transfer to other debts or to your mortgage from the line of credit. This tool saves it’s clients an average of 2/3 off their mortgage and $150,000 of potential interest savings in their journey of getting out of debt.
Lets say you have a $200,000 mortgage for 30 years at $1,200/month:
$40 paid in interest on a new $4,000 balance on the line of credit (you transferred that to pay down the first mortgage), would cancel off about 18 mortgage payments ($21,600) and save you around $17,000 in interest over the 30 years. That’s a pretty good trade, don’t you think?
Do it again till your LOC gets close to zero, make another transfer from the line and do it again, and do it again, and do it again until you get out of debt in record time and pay your 30 year mortgage off in an average of 1/3 the time, in addition to the rest of all your debt with the Money Merge Account systems’ instructions.
That is interest cancellation at it’s very finest.
Interest Float- Borrow money from a line of credit or credit card and pay it back before the bill is due and you will owe NOTHING for using the banks money for FREE. Leave a balance on those accounts and alter the average daily balance by depositing your income in there and paying your bills out of there, and you will pay very little money with the newly effected average daily balance interest rate. The interest you will save from paying your debts and mortgage off fast from these transfers out of the LOC, will drastically outweigh the amount you pay in interest by leaving a small balance on these lines of credit.
The Money Merge Account will guide you mathematically to the fastest way to a zero balance on all your debts. If you enjoyed this post you might also like my post on 8 Ways To Get Out of Debt.
Get your FREE Money Merge Account analysis today!
Senior Branch Manager
United First Financial
336-558-5277
How do you cancel interest on your debts and do you float the banks money? Leave a comment, I’d love to hear from you!



















