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Financial Ed 101 – CLASS IS ON – 1st DAY – Line Of Credit

Time to learn the things your parents SHOULD have told you about your money!

Lets save you $125 a month in 15 minutes, Ready?


I recently visited chapters for a travel book (and Starbucks) and went past the Finance Section to see no shortage of “self-help” and “how to” books on finance!

With all these books available and with the amount of credit we as Canadian consumers have been shocked to not see a line up of people running and fighting to find out how to get rid of it!! I see every bank fighting to advertise how late they stay open and how available they are… yet most banks are dead when I visit them. But why?

I recalled my days of visiting high schools in Hamilton to teach grade 11 & 12 finance classes on personal credit and laughed as I would start to recognize teachers continually joining the class and taking their own notes and realized that even though english, sciences and math were offered no one has ever taught personal finance.

Our task here then is simple: A mini finance education course in an easy to accomplish manner empowering YOU.

TASK: Put $125 in your pocket in 15 minutes and each month after … First Solution/Product to be familiar with: LINE OF CREDIT

What is a line of credit (LOC): Simply put the best flexibility of a credit card with the lower rates of a loan.

Unlike a regular loan, you don’t start paying interest charges until you decide to use it. You can use as much of the line of credit as you want, and pay back any amount as long as you make the minimum monthly payments set by your lender. Minimum payments may be a combination of interest and principal or interest only.

Average person I speak and meet with has between $5-10,000 credit card debt with interest rates averaging 19-29% …lines of credit offer at Prime (3%) + a premium usually 1-3% = average interest rate of 5%  (about 20% cheaper than most credit cards)

If we take then $7500 you have owing and lower that interest by 20% =$1500 annually or $125 a month in interest in your pocket.

ACTION: application for a line of credit can be done by phone, person or online.
NOTE: some banks have minimum payments however of 1.5-3% of the balance, so you make sure you confirm minimum required.

WHAT BANK TO USE?: we have friends as managers at most of the major banks & happy to refer you as a friend for best rates and service.

WHAT TO DO WITH THAT $125?  I am always accepting belated birthday presents!

Yours in mortgages,

James Signature

About the author...

Here to help inform, educate and represent you in the home financing process.

View all posts by James Loewen

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Burlington, ON
L7L 0B4

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james@loewengroup.ca
Thank You for checking out our site. We would love to know more about what you think. This could win you a free dinner for two. Just send us an email with what you would like to see in the best mortgage brokers site on earth, and you'll be entered into the draw. We would love to hear from you and Thanks again! -James
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