Most
Canadians suffer with their highest personal debt load in January, when the
“holiday hit” arrives and your credit card statements let you know just how
much you spent on the festive season. It’s especially hard if you already had a
burgeoning debt load before the holidays. That’s why it’s the perfect time to
talk about a Personalized Pay-Down Plan.
With
the right plan in place, this year could be the beginning of a strong new financial
life. Start now, and every month you could be seeing the difference: a boost to
your monthly cash flow, one easy payment, faster debt pay down, and potentially
thousands of dollars in interest savings.
We
can show you how to use your home equity to roll your high-interest debt into a
low-rate mortgage. First we’ll do an assessment of your situation. Here’s an
example – mortgage, car loan and credit cards total $225,000. Roll that debt
into a new $233,000 mortgage, including a fee to break the existing mortgage,
and look at the payoff:
|
|
MONTHLY PAYMENTS*
|
|
|
|
TODAY
|
CURRENT
|
NEW
|
THAT’S
$1,012 LESS EACH MONTH!
|
Mortgage
|
$175,000
|
$969
|
$1,107
|
|
Car Loan
|
$25,000
|
$495
|
$0
|
|
Credit Cards
|
$25,000
|
$655
|
$0
|
|
Total
|
|
$2,119
|
$1,107
|
That’s $1,012 less each month! Now decide
how to use that $1,012. If you put $500 into your mortgage payment, you’ll
reduce your amortization from 25 years to 15. Or you could invest in RRSPs or
RESPs and reap some tax benefits. Consider putting some funds aside each month
into a “December” fund – so you never have the financial pain of the “holiday
hit” again!
It’s a new year. Make it the start of a
new financial life. We’d love to help you crunch some numbers to see what kind
of life you could be living, something to really celebrate about next New
Year’s Eve!
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