Financial Literacy Month-BMO's Tip of the Day: Consolidate
High-Interest Debt with a Line of Credit to Reduce Costs
Save hundreds in interest costs by consolidating to one low monthly
TORONTO, ONTARIO -- (Marketwire) -- 11/27/12 -- To mark Financial
Literacy Month, BMO Bank of Montreal is releasing a series of
financial tips throughout November. As part of BMO's commitment to
'Making Money Make Sense', the tips are designed to help individuals
and families save and manage their day-to-day finances more
BMO's Tip of the Day: Consider consolidating high-interest debt into
a line of credit to save on interest costs and become debt-free
In the current economic climate, households are looking for ways to
reduce costs and save money more than ever. By paying off higher
interest debt with a single payment through a lower rate product,
such as BMO's Personal Line of Credit (PLOC), Canadians can
significantly reduce interest costs and pay down debt faster.
For instance, some department store credit cards can have interest
rates as high as 29 per cent. For every $1,000 in balance carried on
your department store credit card, you could save up to $230 each
year by using a line of credit instead. Based on an interest rate of
Prime plus 3 per cent.
"Reducing debt and being smart about debt management is crucial in
helping achieve your financial goals," said Su McVey, Vice President,
BMO Bank of Montreal. "Where possible, consolidate your higher
"CFEE commends BMO's ongoing efforts to support Financial Literacy in
Canada and promote ways in which Canadians can increase their
competence and confidence when managing their personal finances on a
day-to-day basis," said Gary Rabbior, President, Canadian Foundation
for Economic Education (CFEE).
BMO Financial Literacy Month Tips
November 1: Maximizing TFSA investments annually over 20 years can
save nearly $30,000 in taxes.
November 2: Utilize rewards to squeeze the most value out of every
dollar you spend this holiday season.
November 3: Choose an investment advisor who is right for you and
will help you meet your financial goals.
November 4: Use your RRSP to help make the down payment on your first
November 5: Space out payments to avoid cash-flow problems.
November 6: Take advantage of the benefits of preferred shares.
November 7: Consider investing in a Registered Retirement Savings
Plan (RRSP) and taking advantage of tax incentives when saving for
November 8: Take advantage of Canada's numerous online personal
November 9: Before you head off on your winter vacation, be sure you
and your family are properly covered in the event of a medical
November 10: Understand what you can hold in your RRSP.
November 11: Stick to the one-third rule when planning the purchase
of a home.
November 12: Secure your retirement by opening a Registered
Retirement Savings Plan (RRSP) as early as possible and contribute to
it on a regular basis.
November 13: As couples prepare for their wedding day, they should
have "The Financial Talk" to help the transition from "my money" to
November 14: Using a combination of a credit card, debit card and
cash will give you convenience, security and flexibility when you
travel or shop in the United States.
November 15: Give the gift of securities and benefit from tax
November 16: To stay on track to reach your financial goals, keep a
well-diversified investment portfolio.
November 17: Take advantage of spousal RRSPs.
November 18: Take advantage of credit cards that offer affordable
emergency medical travel insurance.
November 19: Parents-to-be should consider their financial situation
before the Big Day.
November 20: Use the tax refund generated by your Registered
Retirement Savings Plan (RRSP) contribution to pay down your
November 21: Save for your child's education by investing monthly
Universal Child Care Benefit (UCCB) cheques in a Registered Education
Savings Plan (RESP).
November 22: Save for your child's education by encouraging friends
and family to contribute to a Registered Education Savings Plan
(RESP) this holiday season.
November 23: Bringing your lunch to work can help you save for
November 24: Creating a financial plan, which includes an emergency
fund, can help you plan for tomorrow's unforeseen expenses and avoid
incurring high interest debt.
November 25: Say "I do" to keeping the costs of your wedding under
November 26: Savvy students know to pay off their credit card balance
in full each month and take advantage of rewards and discounts to
For more on financial literacy, Canadians can visit the Government of
Canada's Financial Literacy Month website, as well as BMO's Financial
Literacy online resource.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a
highly diversified North American financial services organization.
With total assets of $542 billion as at July 31, 2012, and more than
46,000 employees, BMO Financial Group provides a broad range of
retail banking, wealth management and investment banking products and
Jessica Park, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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