- 9 out of 10 families live paycheck to paycheck.
- Only 2% of the homes in America are paid off.
- Most 62-year-olds still owe 22 years on their first mortgage.
- 86% of all new homes are purchased by dual-income families.
- 80% of divorces are caused by financial stress.
- 100% of a family’s disposable income is allocated to debt payments.
- Bankruptcies are at an all-time high – 1,663,097, up 10% over the last 12 months. Since 1990,
at least 15 million families have gone bankrupt.
- Mortgage defaults are at their highest level in history.
- States and municipalities are in their worst shape in history, even worse than during the Great Depression. All states combined have a $71 billion deficit.

America owes $6.4 trillion in national debt. This does not include the off-line debt like Social Security. All debt combined, including government and personal debt, is $38 trillion. It takes $2 trillion a year to service this debt. This debt was at $17.4 trillion just 15 years ago. This debt is growing at 5.1% a year, yet the U.S. economy is only growing at 1.4% a year. Our national debt was just at $900 billion in 1980. The country’s debt ratio is at 296%. This year’s deficit is at $500 billion, with off-line debt actually at 1 trillion.
We are the most indebted nation in the world, and our people are the most debt-saturated people in history!

Interest payments are stealing the future of many American families.
• Did you know that if you invested $1,000 a month for 7 years, you would have $121,000? Likewise, if you borrowed the same $121,000 at 10%, how long do you think it would take you to pay it off? It would NEVER be paid off! This is the lesson credit card companies have learned and are using against families. Americans are signing away their future to payments. They are no longer working for their dreams because they are working to pay a credit card payment.

We’ve had many people ask us, “Is it wrong for me to have a credit card?” We don’t believe that credit cards are bad things in themselves, but their easy-to-spend and hard-to-pay nature makes them a major pitfall for many people. When we meet with people struggling financially, we find that most of the time, they have been relying on credit cards to meet their daily needs. Whether it be a credit card from the gas station, department store, grocery store or a platinum card with your pet’s picture on it, most credit cards have hefty interest rates that will steal your future if you allow them. Credit card companies know that most people will not pay off their balance at the end of every month.

Relying on credit cards makes it very difficult to get out of debt. The Bible in its timeless wisdom says, “No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other.” Until someone makes a clear decision to stop relying on credit card debt, it will be very hard for them to be free. We encourage people who have a lot of credit card debt to cut up the cards and learn to live with debit cards until they learn self-discipline in this area. Just as you would not put a bottle of wine in the refrigerator of someone overcoming alcoholism, it is not wise to have credit cards hanging around if you’re trying to pay off debt.

One time, I met a married couple with serious credit card debt. I encouraged them to cut up the cards and learn to live within their means. A few weeks later, they talked to me and told me and they had taken my advice (or so they thought). We found out they had frozen their credit cards in a bowl of water in the freezer. One problem: they owned a microwave! They were still holding on to their back up plan.

At one time in my life, I had ten maxed-out credit cards, three finance company loans, two car payments, back taxes, and $20,000 owed to relatives. Now, at that time I realized I was completely trusting debt to meet my needs. My wife and I cut up our credit cards and decided to never use debt as a way of life again. It would have been unwise for us to keep the credit cards because we were so programmed to use them for everything. However, in three years, we paid off all that debt. Sixteen years later, I use credit cards for most everything, but I pay off the balance at the end of every month, never allowing our balance to outgrow our income for that month. Using credit cards helps me keep track of my finances, but I have learned the lesson of living within my means and avoiding the deception of debt.

So, no; it is not bad to own credit cards. But is it unwise for YOU to have them? That depends on HOW you are using them. Freedom is worth any upfront sacrifice. Do what it takes to get on track to financial freedom today. If that means cutting up the cards and only using debit cards and cash for a time, do it knowing that the lesson will be worth it!

Every family has to pay for many different types of insurance. Our advice is to buy the least expensive quality insurance you can. To save money on insurance, set higher deductibles on deductible type insurance programs, such as auto, home and health. Setting higher deductibles will also require you to have a cash reserve in place to cover those deductibles in the event of a claim.

Be a good shopper when it comes to insurance. Rates vary between companies. You can obtain a list of every licensed company in your state by contacting your state insurance department. Some states even provide a comparison of prices for the companies in their state. Or call us and let your personal FFG representative shop it for you.

Buy term life insurance. The life insurance industry makes its living by selling expensive cash value insurance, such as whole life, universal and variable life. You can buy the coverage for a lot less money by buying term. The cash values of an existing policy may provide your cash reserve or pay off some debt. Never terminate an existing policy before you have your new policy in your hands. Some medical conditions may prevent the issuing of a new policy, so it is always best to be sure before you change. Avoid specialty insurance policies like cancer or accidental death policies, which are very limited in their coverage.

Group insurance may be your best route to obtain less expensive coverage. All group insurance has a limit, so check out the options with your employer. One thing to consider is that if you leave your company, you are usually leaving your insurance. Group insurance is a great way to boost your insurance program, but it should never be your complete insurance program. Always maintain personal life insurance outside of work. Check with your employer about options in raising or changing your coverage.

Simply put, debt promises so much so fast and easy, yet in the end, people find themselves in slavery and hopelessness. Debt is no different than slavery in the sense that a slave works all day for a master in exchange for a place to stay and food to eat. They have no means with which to dream about their future. They must first consult their real master before doing anything. If you must consult your checkbook before following your destiny, you are not free. We find that most people want to do something great with their lives, but they feel they cannot because they have bills due and financial problems to worry about. Debt is a dreamkiller, and we have a passion to help people understand that they can be free. Think a minute about how good it would feel to be out of debt, owing no man anything.

OVERPAYING TAXES? Statistically, up to 60% of all tax returns contain errors, usually in the IRS’ favor. Right now the IRS has billions of dollars waiting to be claimed by people who have overpaid their taxes due to miscalculation and numerical errors. The catch is that most people don't know they've overpaid, and the IRS isn't required by law to tell them. If you don't find the mistakes and request a refund within 3 years, the IRS keeps the money. According to Tax Advisor Magazine (May 2000), a 1998 study showed taxes exceed what most of us pay for food, lodging, clothing and transportation combined - and it turns out that many of us are paying more than our fair share. Our job is to help you find the errors that have caused you to overpay, and get your money back!

THE TAX REFUND MYTH: Over two thirds of the U.S. population get a refund check from Uncle Sam every year and think it is the greatest thing since sliced bread, since they can’t seem to save money any other way. However, Uncle Sam pays zero percent interest on the money you overpaid during the year. Make changes now to leave about $200 in a refund check for next year, and put the increased cash flow toward a cash reserve. Talk to your tax advisor or call us for detailed instructions on how to change your W-4. Be sure to include any new child, new home or new second mortgage when figuring your new allowance. The more you save up front on your taxes, the more money you will have to invest into something that will give you a return.

TAX PENALTIES: Did you know that there is a form you can fill out to receive all of your tax penalties from the last three years RETURNED to you by the IRS? Of course, the IRS does not advertise this form. Your personal representative from Forward Financial Group can help you implement this and other life-saving financial tips. Don’t let past tax mistakes haunt you anymore. It’s pay back time!