Prime Alliance & Reverse Banking

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From: Anonymous


Just attended a free seminar about Prime Alliance who are Finance consultants specialising in home loan structures to reduce debt more quickly. Their system is based on "Reverse Banking" ie reversing impact of compound interest.

Question 1: Can anyone explain how this is achieved.

Question 2: They talk about using a bank and a product. Does anyone know which bank & what product?

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Anon

I have not been to the seminar, but it commonly goes something like this.

Take all your existing debt and convert it to various forms of Revolving lines of credit.

Park all +ve cashflow against your debt and pay less interest. That interest saving accelerates over time, hence the reverse compounding. Trouble with many of these systems for many people is that they are more expensive to operate than the money they save.

I have the same mantra for you as for everyone looking for the finance fix, Go and find a good independent mortgage broker that knows his/her salt.

Ta

Rolf