We’ve covered how to financially survive a divorce and dividing assets, now it’s time to get down to the brass tacks – debt. Some couples come into a marriage with debt, as we talked about in one of our blogs “So You’re Getting Married”, and some couples accrue debt during their marriage. Either way, when a marriage comes to an end, that debt must be dealt with.
One approach to addressing marital debt is to pay it off before filing for divorce. This requires a couple who can speak candidly to each other regarding this topic as well as two people who are willing to accept that debt is generally mutually created and accept joint responsibility. More often than not, this situation is just not a reality. Debt is quite often a major instigator of marital breakdown. Continue reading
Doug chatted with CTV’s Morning Live to discuss a growing problem with students and credit being so accessible. Students particularly are graduating with more debt and have no idea how to deal with it. Institutions are focusing on future earning potential. Learn how a Financial Planner can help secure that.
With the current economic uncertainty, many people are looking for ways to reduce expenses. A relatively painless way to reduce your monthly expenses is to have a second look at the way you’re managing your debt.
Over time, most of us take out a variety of loans for different purposes. These can include things like credit card debt, car loans, home renovation loans and, of course, the mortgage. And if you have more than one loan, you’re most likely paying a different interest rate on each loan. One of the easiest ways to reduce your monthly interest costs is to consolidate your debt at the lowest rate. Typically, your lowest-rate debt will be a loan that is secured by an asset, such as your home.
If you have sufficient equity built up in your home, consider switching to a product that allows you to access your equity, such as a home-equity line-of-credit. Then, use this line of credit to repay your higher-interest loans. In this way, you’ll be bringing all of your debts together into a single account, at a single rate. Some line-of-credit products even allow you to track debts separately within the account so you can continue to keep track of interest costs and repayment separately. Not only will debt-consolidation save you interest but it will make it easier for you to keep track of what you owe and how you’re progressing in paying it down.
Reducing your monthly expenses is one way to deal with economic uncertainty – and it doesn’t have to be painful. By borrowing smarter you can reduce your interest costs and increase your cash flow each month.
If you’d like to learn how to reduce your monthly interest costs, give me a call and I can discuss some options with you.
Women usually have a lot of priorities they need to deal with and unfortunately financial planning does not always appear at the top of the list. Finding the time to focus on finances is often a challenge in a woman’s busy life. According to a recent Fidelity Investments survey, if women were given one additional hour to devote their time just on finances, they would work on their budget and learn more about investing.
When it comes to money, women’s main concern is working on a budget to lower debt and save more money. The second concern is to develop better skills in investing, and third is to create a financial plan and investment strategy.
It’s imperative for women to take an active role in financial planning. There is a very high probability of women being solely responsible for their finances at some point in their lifetime due to divorce or outliving a spouse. Nearly one-quarter of women say they don’t partake in financial decision making.
“Women can make changes to their finances such as lower debt, save money and become good investors. Making changes to your financial plan doesn’t have to be as difficult as it is perceived to be,” says Doug Buss, President, YourStyle Financial.
It’s often said that the effects of debt are more than just on the wallet – that when one focuses too much on debtload it can have other negative effects.
Sleepless nights, anxiety, depression can all be caused by stress, and there’s no question that debt can be one of, if not the biggest stress inducers in one’s life. It can make us feel limited in what we can do and isolate us.
As difficult as it may sound, it is of extreme importance to keep one’s attitude buoyant when encountering any major stresser, be it debt or other. Finding those escapes are important. If you love biking, take off for an hour to burn off concern. If TV is your vice, plunk down with a loved one and a recorded movie. If getting out of the city helps, remember that this is Winnipeg and a beach is less than a quarter a tank of gas away.
Sanity and debt recovery go hand in hand. Ensuring your wellness is up to snuff will help you be more open rather than closing off when it comes to the topic of financial planning.
Enjoy the Winnipeg summer.