Call me to start the process and see what options you have to:

· pay off your debts faster.

· and/or improve cash flow.

2^nd Mortgage, is it a bad word? Is that what it feels like to you? I can’t get a 2^nd Mortgage. I’m not that irresponsible. In my opinion 2^nd Mortgage should not be a bad word. It's just another tool in the home and life financing tool belt.

The old thinking was buying a home and paying off the mortgage as soon as you can so you owe nothing. Not in debt to the bank or finance holder. Pay cash for everything and have no Debt to anyone. That is great if you can do that and eat too. Today as society has moved along that thinking is long gone.

Prior to that, the systems were barter and or cash. “In the 1960s, because of the growing use of such cashless commerce, the Canadian federal tax authorities began to restrict the practice of barter. Now companies giving individuals cashless benefits must issue a slip stating the value of the goods or services for income tax purposes. If such benefits are not reported as taxable income, the tax burden shifts to other Canadian workers who receive only monetary remuneration.” 1

Back in 1958 American Express launched the 1^st Credit card in Canada and the US markets. 2

“In the early 1970s, limited-use cards issued by retail firms, usable only in the firm's stores, were the most com-monly held type of credit card; bank-type cards were much less common. By 1995, however, the holding of bank-type cards was more common than the hold- ing of retail store cards.” 2

Cash became used, less and less, and the valuable principals were lost on so many. Today those cash principals are truly unknown to most. Charge it! Was the rally cry.

Now, I deserve to have this _______! Fill in the blank with whatever lie that we tell ourselves.

When my university age children started to get a credit card, I didn’t know they had gotten one until I heard that they owed money on their card(s). They didn’t establish credit like I did with a cosigner on a bank loan. It was my fault as I see, I missed it in the "train my children book". Regardless of an excuse or reason, I didn’t realize the ramifications until it was too late. Did I have that parent Training manual on teaching healthy financial boundaries? Or any other of my perceived failures that I recognize now as a parent of adult children.

The new university students are issued credit card(s) almost on the 1^st day of class. I have heard of many applications not just one. In the majority of cases no one is teaching these young people of the dangers of the improper use of credit. What fun is that?

Easy access to money any time of the night or day for anything you deem that you need. Regardless of the price. Someone I know shared that they had taken their new credit card to the bar in university. Later that same evening, $1500.00 was tapped out. In one night. It cost him years, he was a student and had no money. He needed to pay back $1500.00 plus daily compounding interest for years. The price and the pain of that experience still lives with him today. Oh, sure there is a cost to using credit. A high one!

Many adult home owners today are offered lines of credit (typically interest only) and that for many is the new credit card as the interest rates are lower but there is still a heavy price to pay. Interest compounds monthly and when you use the lines of credit the banks automatically deduct pre-arranged interest only payments. It is up to you to pay down your principal on top. Unfortunately, people do not realize that they are eating away the equity of their estate.

The interest rates are climbing, and those lines of credit amounts are increasing monthly. The amount is getting to be too much and more than you can pay on your pension. At one point there will come a time when you will be at the end, and you may struggle to pay down those debts. I hope that is not you and now. The banks may not lend you any more money, or even call in your line of credit and / or ask that you pay it out.

Homeowners may have hope to get a 2^nd Mortgage on your home. That option can allow you to pay down on principal and start righting the ship in your finances.

Call me to start the process and see what options you have to:

· pay off your debts faster.

· and/or improve cash flow.

1 (www.thecanadianencyclpedia.ca)

2 (Google Search)

Melinda Baker Mortgage Broker M21000893 Verico The Mortgage Station 11707

Phone: 705-220-1608 melinda@themortgagestation.ca mortgageweb.ca/melindabaker