Personal Sweep Accounts

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Hi All,

I'm a former accountant who got out of the business after realizing I wanted to make money along the lines of the tax returns I was working on rather than the paychecks that were going into my bank account. I began learning real estate investing, which is neither here nor there, but one particular class that I took I wish would have been taught as part of my degree. It was a class on accelerating debt reduction. At first I was expecting some hokey bi-weekly payment plan but this was something completely different. It teaches how to increase cash flow, convert amortized interest to simple interest, and pay off amortized debt in 2/3's the amount of time as normal. But, without negatively affecting your monthly budget like the bi-weekly or additional principal payment type plans teach.

I'm just curious if anyone is using this in their practice with their clients or have even heard of it before? I know my clients were always looking to save money (the first place they tried was always on their bill) but beyond that it is a great tool to help them with financial planning by increasing their cash flow without changing their spending habits (assuming they have debt, which is why they have no cash flow anyway). With sufficient cash flow, 30 year mortgages are being paid off in 7-10 years and eliminating 100's of thousands of dollars in interest. The sad part is, this is normal banking procedures in other countries and we are so dependent on the banks that the US banking system can't promote it.

Just thought I would throw that out there in case anyone see's value in teaching this to their clients as a value added service to what you already do. I'd be happy to send more info on how to get this class if anyone is interested.

Cheers!
 

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