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|Save yourself from sinking into your Mortgage and Debts!|
Many of my clients have asked me how they can pay down their debt, increase their cash flow, or pay off their mortgage faster. With the average consumer debt balances reaching $26,000 and car payments/lease payments of $500 per month, 50% of the average household income is going out to pay consumer debt. This means that if one spouse loses their job, leaves work to be a stay-at-home parent, or encounters an unforeseen expense, they could be in big trouble.
In addition, your financial advisor and all the big investment and insurance firms want you to place $500 per month into an RRSP and an additional $200 to $400 into your insurance plan to cover the debt. So how do you manage your monthly cash flow, pay down your debts, and get that mortgage balance down at retirement? Sounds like the old story that goes… “there was an old lady who swallowed a bird to catch the spider to catch the fly”. The debt we add to our existing plan limits our ability to plan for any future.
So if the average Canadian is in big trouble, they may want to consider retiring in an RV in Mexico—not a bad idea! But how do you manage to set aside enough money each month, reduce debt, and have some sort of lifestyle? The answer is to find a mortgage product that provides flexibility for your income, lifestyle, and current debt load.
How are you going to live up to your parents’ expectations in paying off your $500,000 mortgage? Not a fair comment since my parents bought a house in Kelowna, BC for $30,000 back in 1975. Gone are the days where people focused on solely paying off their mortgage—how can you? The people I have seen who do this have racked up credit cards and lines of credits; they decrease one and increase the other. If you have children, you will know what I am talking about. The focus since the 2008 crash is to conserve cash flow and recover from the downturn in the economy.
So once you have a handle on the cash flow by restructuring your mortgage and debt, we can use a few strategies such as RRSP loans and tax refunds to fund your retirement. It’s another creative solution in fixing clients problems here at Your Future Financial Group.
You create an all in one account which allows you to combine your mortgage, personal loans, and lines of credit with your income and short term savings.
How does this benefit your family? Simple! By consolidating your debt at one low rate, and then using your income and short term savings to reduce your balance, you will take years off your mortgage and save thousands in interest.
As long as your income exceeds your expenses, having your income deposited to your Manulife One account means any excess cash will reduce your overall debt.
The best part is, you don’t need to wait for your present mortgage to come due. Your first appraisal and up to $300 of your legal costs are covered by Manulife Bank on a home purchase.
Contact Your Future Financial Group to set up an appointment:
Call our Office Phone at: 1-250-869-8158