The document discusses the impact of debt on American families and emphasizes the importance of becoming debt-free for financial freedom and wealth building. It presents statistics on consumer debt, bankruptcy, and suggests strategies for managing debt effectively, including the Money Merge Account system. The authors encourage readers to reconsider their financial habits and prioritize eliminating debt to achieve their goals.

1. What were your childhood dreams?

2. Debt Destroys Our Dreams

3. Debt Destroys Dreams
Statistics on Debt
More than 40% of
American families
spend more than they
earn (Federal Reserve).
As of 1995, 92% of American
families’ disposable income is
spent on paying debts (up from
65% in 1975).

4. Who Files Bankruptcy?
 Well-educated, middle-class baby boomers with
big-time credit card debt
(University of Texas study printed in Wall Street Journal)
 In 2008, more people filed for bankruptcy than
will graduate from college
(Bureau of Labor Statistics Consumer Expenditure Survey)
 From 1991-2007, the filing rate for senior citizens
was up by over 400%
(Consumer Bankruptcy Project as reported by the Associated Press)

5. What if you had no Credit Card Debt?
 The typical household has $38,000 in consumer debt
(Consumer Reports Money Book)
 In 2006, approximately 60% of credit card users did not
pay their balances in full every month (Federal Reserve)
 It is estimated that, on average, 20% of Americans have
maxed out their credit cards

6. 3 Candid Questions
1. Is becoming debt free and aggressively
preparing for retirement truly a priority for you?
2. What game plan do you currently have in place
(if anything) to accomplish that?
3. If you could pay off your mortgage and your
entire debt load in half the time or less,
operating within the constraints of your current
budget … how would your life change?

7. Mortgage Debt
Statistics on Homes/Mortgages:
-Nearly 1 in 519 homeowners, received a
foreclosure filing during April 2008.
(U.S. Foreclosure Market Report from RealtyTrac)

8. Could we achieve more, if we were
not slaves to the lender?
 In 1929 – Only 2% of homes in America had a
mortgage against them. 98% were Mortgage FREE
 In 1962 - 98% had a Mortgage Against them
(Christian Financial Concepts)

9. It Doesn’t Have To
Be This Way!

10. What Could You Accomplish,
If You Were Financially Free?
Spend More Time With
Send Kids To College?
Family?
Renovate Your Home!
Travel? Would You Retire?

11. “We can't solve problems by
using the same kind of
thinking we used when we
created them. ”
Albert Einstein

12. We Must Change Our Habits!
The Forbes 400 were asked:
“What is the most important key to
building wealth?”
75% Replied that BECOMING AND STAYING
DEBT FREE was the number one key to
building wealth! Remember, wealth is
assets minus liabilities.

13. 1997 Accelerated Equity
One of Utah’s Fastest Growing Companies in 3 Years
2002 Focused on Cure For Clients
As children, Skyler Witman and John Washenko both
saw their parents face foreclosure --- they decided to
Skylar Witman change their focus to helping their clients learn how to
act like a bank and maximize their financial situation
John Washenko
2005 Money Merge Account (MMA)
2005-2006 The “Denver 400” Project – Beta Test
2006 UFirst Financial
In 12 Months…UFirst went from 10 agents to over
28,000 agents

14. 14

15. See What the Experts Are Saying

16. “A-” Rating

17. Closed-End Loan
$200,000 Principal Loan Amount
6% Interest
$ 1,199 Monthly payment
360 Months (30 years)
$231,677 Total Interest Paid
$431,677 Total Repayment

18. $200,000 Principal Balance
6% Interest Rate
$1,199.10 Monthly Payment
Principal Interest Balance Equity Paid
Month 1 $199.10 $1,000.00
Month 2 $200.10 $999.00
Year 1 $210.33 $988.77 $197,543 $2,457 $14,389
Year 5 $267.22 $931.88 $186,108 $13,891 $71,946
Year 10 $360.44 $838.66 $167,371 $32,628 $143,891
Year 21 $696.23 $502.89 $99,877 $100,123 $302,173
Year 30 $431,677

19. Prepayment Example
$ 5,000 Additional Principal Payment
$195,000 New Principal Balance
6% Interest
$ 1,199 Monthly payment
337 Months remaining
$231,677 Original Interest Paid
$208,373 New Interest Paid
$ 23,304 Net Interest Saved

20. If you have any kind of debt, you should
NOT have your money stagnating in a
checking or savings account!
= “Spending Account” Money goes in
Checking and out, but little or no interest is earned.
= “Safety Net” – Money is moved here in
Savings case we run into hard times. We usually
earn .5% to 2% interest on this account.
Create an Interest-Cancellation Account

21. What is an interest-cancellation account?
• Have you ever charged a balance on your credit card?
– What was the interest rate on that credit card?
• What if you paid the balance in full at the end of the month?
– What would the effective interest rate be for that exact same
card?
You have just created an
Interest-cancellation account!!!

22. That same principle applies…
• Can you pay your mortgage with a credit card?
– Of course not.
• We need an account that will work as much like a
Checking Account as possible, but still cancel
interest.
– A Line of Credit (LOC) would work!
• Unlimited check writing
• Unlimited debit card usage
• Access to YOUR money 24/7
• Open-ended interest instead of front-loaded
interest (like on a mortgage)

23. Money Merge Account™ Program
Open-ended Line of Credit Options
Multiple Line of Credit Options
• Home Equity Line of Credit
• Personal Line of Credit
• Commercial Line of Credit
• Secured Line of Credit
• Additional interest savings possible, by taking
advantage of interest float, using a credit card

24. Sample Family
$5,000 Monthly income
-$4,000 Living expense (mortgage, car payment)
$1,000 Discretionary income

25. Month 1 $3,500 MMA investment
$4,000 Expenses
$7,500
$5,000 Income
$20.83
$2,500 Average Monthly Balance
Month 2 $4,000 Expenses
$6,500
$5,000 Income
$1,500 Average Monthly Balance
$12.50

26. $220.48
Month 3 $1,500 $201.10
$4,000 Expenses
$ 19.38
$5,500
$5,000 Income
$ 500
Reduced mortgage b
$3,675.77 Funds transfer 18 months
3 month total
$34.80
$68.13 $4,175.77 Average Monthly Balance
Remaining
Interest Cancellation Principal Interest Balance Payments
Month 1 199.10 1,000.00 199,800.90 359
Month 2 200.10 999.00 199,600.80 358
$17,249
Month 3 201.10 998.00 195,723.93 339
Month 4
`220.48 978.62 195,503.45 338
Principal Jump Month 5

27. Month 4 $4,175.77 Starting Balance
$4,000 Expenses
$8,175.77
$5,000 Income
$3,175.77 Average Monthly balance
$26.46
Month 5 $3,175.77 Starting Balance
$4,000 Expenses
$18.13 $7,175.77
$5,000 Income
$2,175.77

28. Month 6 $2,175.77 Starting Balance 6 month to
$4,000 Expenses Reduced mor
$6,175.77
6 month total
37 mon
$146.85 $5,000 Income
$1,175.77
$34.13 Reduced m
$2,920.23 Funds transfer
month total $4,096 Average monthly balance 16 m
Cancellation Remaining
Principal Interest Balance Payments $238.41
29,523 Month
4
220.48 978.62 195,503.45 338 $222.69
Month
5
221.58 977.52 195,281.87 337 $ 15.72
Month
Cancellation 6
222.69 976.41 192,138.94 323
Month
7 `
238.41 960.69 191,900.53 322
12,274 Month

29. 12 month total
Reduced mortgage by
Month 12 $2,003.68
12 month total $4,000 Expenses 53 months
$297.89 $6,003.68
$5,000 Income
$32.68 Reduced mortgage b
$1,003.68
nth total
$2,917.67 Funds transfer 14 months
$3,921.35 Average monthly balance
ancellation
$275.04 Remaining
Principal Interest Balance Payments
,862 $199.10 Month 10 256.59 942.51 188,245.86 308
Month 11 257.87 941.23 187,987.99 307
$ 75.94
Month 12 259.16 939.94 184.811.16 295
t Cancellation Month 13
`275.04 924.06 184,536.12 294
Month 14
4

30. MMA Program Conventional Program
Starting balance $200,000 $200,000
Balance in 1 year: Balance inin 1 year:
Balance 5.5 years:
$184,811 $184,752
$197,543
Repayment time 10.4 years 30 years
Total interest paid $70,422 $231,677
Total interest savings: $161,255

31. What rate of interest did you pay on the LOC?
• How much did you borrow over the last 12 months?
• Software Inv: $3,500.00
• 1st Funds xfer: $3,675.77
• 2nd Funds xfer: $2,920.23
• 3rd Funds xfer: $2,917.67 1.87%
• 4th Funds xfer: $2,917.67
• Total borrowed: $15,931.35
• Total interest paid…. $297.89
• Divided by: Borrowed funds: $15,931.35
• Why does this work? Answer: Because our income cancels out
large amounts of interest by reducing the balance on the LOC.
• Would you borrow money at 1.87% to pay off a mortgage at 6%
and all other debt at 6-25%?

32. How Would You Pay This Off?
$226,183
$42,296
6.5%
Mortgage 2.75%
$21,538 $27,753 Auto Loan
10% 16%
Line of Credit Credit Card $7,753
Balance $4,309
9.125%
6.125% Boat Loan
Furniture

33. Math – Working For or Against Us?

34. Cash Flow Model
(Using a Line of Credit)
Checking Line of Credit Strategic
0% 10% Debt Payoff
Funds
Transfer
Income Income Availa Creditors
ble
Funds
Income Income
PAY
Optimal transfer point
Minimum Reserve Low Balance

35. Financial GPS
Imagine using a
Smart Money System
that shows you how to keep more
of your hard earned money and
put it to work for you.

36. Features and Benefits of the
Money Merge Account Version 4
• True Cost
• Strategic Debt Elimination
• Adjustable Aggressiveness Scale
• Access from cell phone via text
• Pay bills
• Access from any internet connected computer
• Works on Mac and PC
• Tracks Multiple or Investment Properties
36

37. As of 2008, United First Financial had helped their clients pay
additional principal toward their debts in the amount of:
$400 million
By 2010, that number was almost
$700 million