Thursday, November 17, 2011

Financial Comfort and Joy

If you or you know of someone in this situation, please forward to them….
In a few weeks we’ll be in full gear getting ready for the holiday season. But before you begin your holiday baking, or get started on your holiday shopping list, here’s a tip for enjoying real financial comfort and joy this festive season: do a holiday debt-check!

Why do a debt-check just when you’re getting excited about the holidays? Well… that excitement is the reason you want to have a cool, intelligent appraisal of your financial situation. It’s tempting to overspend at this time of year. That’s why so many Canadians suffer from “plastic shock” when their credit card bills arrive in January.

Do a quick assessment. Are you carrying too much credit card or other high interest debt right now? Do you have a fund set aside for holiday shopping? Are you struggling to keep up with your monthly obligations? If you answered “yes” to any of the above, it’s worth having a conversation about streamlining your finances before the holidays are upon us.

We have access to some great rates right now (3.14% 5 year closed), and can help set you up with a smart plan with sensible payments, and smooth sailing through the hectic holidays and into the new year.

Worried that your locked-in mortgage means your options are limited? We can do a quick check – there’s a good chance the savings each month will far outweigh any penalties. Here’s one client example:

Joe’s mortgage, car loan and credit cards totalled $225,000. We helped Joe roll that debt into a new $233,000 mortgage, and even paid a fee to break the existing mortgage. But look at the payoff:
                                                            Current                                    NEW
                           Today            Monthly Payments*               Monthly Payment*
Mortgage            $175,000                  $969                                        $1,176
Car loan              $ 25,000                   $495                                        $     0
All credit cards   $ 25,000                    $655                                        $     0
Total                                                    $2,119                                     $1,176
That’s $943 less each month - a huge improvement in cash flow! Joe’s planning to put tax returns and holiday bonuses against his mortgage principal – and he’ll be out of debt well before his original timeline – with some real peace of mind about his finances.
Give me a call. I would  love to help at this time of year. Financial comfort and joy: that could be one of your best gifts!
*4.5% current mortgage, 3.6% new mortgage, 25 year am. Credit cards 19.5% and car loan 7%, both at 5 year am. OAC. Subject to change. For illustration purposes only.

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