How Cloud Helps Pay Off The Mortgage

How Cloud Helps Pay Off The Mortgage

How Cloud Helps Pay Off The Mortgage

A great deal of the buzz surrounding cloud technology has to do with business-related issues such as data storage, security, and mission-critical business applications, but sooner or later every person who works directly with cloud technology, as well as every other person who doesn’t, has to go home to their house, buy some groceries and pay some bills. One of the largest and most important bills required to be paid by many of us is the mortgage, a delightful word that comes from ancient French and which means “dead pledge,” or in other words, being dead is not an excuse for missing a payment to the bank.

judicial_foreclosure_activity_oct_2013A mortgage is a trade-off: a 30- or 40-year commitment to a bank in exchange for a comfortable place to live. In the post-war years when a substantial middle class existed, it was the dream and expectation of anyone living in a reasonably prosperous country to work hard, and pay down the house loan and its interest diligently and regularly, so by the time retirement came around, the property would be owned fair and square.

In this new age of foreclosures and of an evaporation of both the middle-class and of job-security, the concept of signing half or more of one’s life away to a bank seems daunting or impossible for many. But this is where cloud technology comes to the rescue. Computer technology and specifically cloud-based technologies have opened up alternate channels for personal financial management, specifically in the area of online debt-reduction solutions.

Traditionally when people hear the term debt-reduction, they think of credit counselling services. And when they hear online financial software, they think of online banking or tax filing applications.

Mint

But online financial management applications are neither of those things. Instead, they act as advisors, calculating just how much spare money exists between the amount brought home as salary, and the amount paid out as bills and expenses. Whatever is left over can then be applied, entirely or in part, to paying down the high-interest long-term obligations such as credit card debt and the mortgage, often using prepayment privileges and other techniques to maximize the power of each repayment dollar and to eliminate the debt many years faster. Ultimately, these cloud-based applications help pave a road map to debt freedom through strategic repayment planning.

Three of the most popular of these apps are Mint.com, owned by Intuit, InterestBLOCKER, and Mac/iPad-based MoneyWell/DebtQuencher.  All of these applications seek to identify where the money goes and how it can be applied to debts..

Cloud-based financial management applications represent both a challenge and an opportunity for consumers looking to alleviate their debt load. The opportunity lies in the sophistication of these online apps – the power of a financial manager at one’s fingertips, with the added benefits of applying what-if scenarios that allow users the opportunity to envision a number of strategies for using their hard-earned cash, as well as the proactive approach to assigning money in real-time rather than waiting until month-end or until payments become overdue.

The challenge, though, comes from implementing these apps and in sticking with them. Many consumers are unwilling to truly accept the dire financial situations they find themselves in, and prefer to operate in a more fatalistic fashion. Also the discipline required to keep books in this way is daunting; consumers have been conditioned from an early age to feel intimidated by the seeming complexity of personal financial management.

All three of these applications therefore seek to counter such resistance and reluctance by fostering a sense of community, including reminder emails, achievement recognition, and gamification-type rewards, to keep  users motivated and focused.

We seek to give our customers a type of financial GPS,” says Derik Rehou, President of OneLife Financial, the creators of InterestBLOCKER. “We focus solely on the numbers, but we can do this at a much higher level – a ten-thousand foot view of the landscape, which helps guide our customers along a path that would otherwise not always be visible.”

The gradual acceptance of cloud-based financial management software represents another world-changing concept, in that its effects are felt well beyond its own customer base. Many traditional banks are now responding by offering greater flexibility and service in the way they offer financial services; and when a bank blinks like that, something has definitely changed.

(Image Source: http://www.realtytrac.com)

By Steve Prentice

About Steve Prentice

Steve Prentice is a project manager, writer, speaker and expert on productivity in the workplace, specifically the juncture where people and technology intersect. He is a senior writer for CloudTweaks.

Find out more
View All Articles

Sorry, comments are closed for this post.

Taking Your Access Governance Processes To The Cloud

Taking Your Access Governance Processes To The Cloud

Access Governance Access governance is a growing market in many different industries across the United States and beyond. Companies are investing money in access governance solutions to efficiently improve processes and ensure security of their networks, without a great deal of effort. As the cloud has become more of a standard in every organization, how…

Personal Space And The Internet of Things (IoT)

Personal Space And The Internet of Things (IoT)

The Internet of Things (IoT) There is a long time concept of the personal area network or PAN. For all intent and purposes this is the maximum distance a Bluetooth device can move away from the host and still be functional. As I read the many wonderful pieces on the explosion of IoT and wearable…

Vendors To Enter The Cyber Security Game

Vendors To Enter The Cyber Security Game

IT Regulatory Compliance as the Next Big Focus for Cloud Vendors Back in October 2014, Defense Information Systems Agency (DISA) submitted a public request for information, calling for the assessment of the marketplace’s ability to “provide cloud ecosystems and services in two integration models that place vendor cloud services on DoD networks for use by…

Connecting To Information With Cyber Physical Systems

Connecting To Information With Cyber Physical Systems

CPS Device Trends On The Rise It isn’t, “Do you remember who starred in XYZ Movie?” It’s, “Can you look it up please?” “Did you ever think you would sit at the dinner table, and when a question came up, someone would look up the answer and share it with everyone?” The words echoed at…

Connecting Cars To The Cloud

Connecting Cars To The Cloud

The Cloud Connection Cars are becoming more and more connected. There are many YouTube videos of people seizing control of a car remotely and forcing it to operate in unexpected ways. But overall the reality of connection is good. As machines extend human functions we are better off. That said, I was thinking about automation…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor