The principles of envelope budgeting and debt roll-down will help to get them out of trouble and improve their financial future.
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Draper, Utah (Vocus) June 25, 2010
Finicity’s goal is to help members gain control of their money, quickly eliminate debt and remove the stress often associated with money management. Mvelopes helps our members to accomplish all of these things, but used in conjunction with the new Money for Life Debt Assistance Program, they can also focus more quickly on debt elimination, especially with the help and guidance of a personal Money for Life Coach.
The Money for Life Debt Assistance Program will help Mvelopes members manage their debt more effectively and eliminate it more quickly, using the debt roll-down or debt snowball principle. The program includes one-on-one sessions with a personal Money for Life Coach, Mvelopes service and the creation of a customized Debt Elimination Plan.
The Debt Roll-Down principle is simple, yet very effective. First you create a list of your debt obligations and prioritize them in order of highest interest rate. Second you will allocate money for your monthly payments in your balanced spending plan. Once you eliminate the 1st priority debt, you will roll that first payment amount over into the payment of the 2nd priority debt.
“Periodic spending is often what gets people in trouble. They didn’t have money set aside for Christmas or a car repair, so they put it on the credit card, thus overextending their household budget. Same thing with the summer vacation or birthday presents,” said Steven B. Smith, President and CEO of Finicity. “The principles of envelope budgeting and debt roll-down will help to get them out of trouble and improve their financial future.”
As people use Mvelopes, and the Debt Assistance Program, they rapidly start saving a portion of their monthly cash flow, typically 10%. We refer to this as the “Mvelopes Accelerator” and it can be used to more rapidly eliminate debt, or increase savings.
Mvelopes users on average save $30-50 per day in interest by eliminating their debt more quickly, or not incurring debt in the first place. From a sample size of 25 people using the Debt Assistance Program, on average they saved $100,000 in interest.
Finicity specializes in online money management tools and resources for personal budget and business use. Finicity's flagship product, Mvelopes Personal, was named one of PC World's 100 Best Products of 2006, as well as, a finalist in the 2008 IQ Awards for innovation in consumer products. Recently, Finicity was identified as one of the top ten fastest-growing companies in Utah, ranking ninth on the MountainWest Capital Network's Utah 100 List. Founded in 1999 and headquartered in Draper, Utah, Finicity is a privately held company.
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