1. Mark Huber, CFP SetForLife Financial Services Tel: 604-207-9970 mhuber@HowToBeSetForLife.com http://www.HowToBeSetForLife.com Cornerstone to a solid financial plan– wise debt management

2. Meet David High expenses Mounting credit card debt

3. Meet Terri and Sam Ready to arrange a mortgage Floating interest rate Fixed rate

4. Meet Sarah $10,000 in savings Needs access for emergencies

5. Sound familiar? 70% concerned about rising interest rates * 75% havent reduced debt or increased savings in the past year * Source: Maritz Research for Manulife Bank of Canada

6. Not all debt is bad Expensive debt Credit cards Regular debt Mortgages, lines of credit, car loans Tax-deductible debt Investment loans

7. Remember David? Credit card debt Pay with bank loan or line of credit Reduce interest payments Out of debt sooner

8. Davids saving solution Credit Card Interest $10,000 X 20% = $2,000 per year Loan Interest $10,000 X 4.25% = $425 per year Savings$1,575

9. Advice for David Only spend what you can afford Pay off your balance in full each month

10. Banking on your own interests

11. Terri and Sams mortgage dilemma Fixed vs. floating rate mortgage Study 5 year intervals (1950-2000) * Better off with floating rate Renew annually Source: Prof. Moshe Milevsky, Professor of Economics, York Univ.

12. Advice for Terri and Sam Consider floating rate Lock in only to establish comfort level before moving to variable rate

13. Sarahs savings Wants access to her $10,000 Minimal debt Concerned about retirement savings

14. Putting Sarahs money to work Non-registered investment Security for line of credit Access to cash in emergencies Low rate of interest

15. Three problems, one solution 1.Convert expensive debt to regular debt 2.Reduce interest with a variable rate mortgage 3.Put savings to work Flexible mortgage account

16. Save yourself a whole lot of money Flexible Mortgage Account Combine floating rate approach with savings of debt consolidation Debts, savings and income in one account Save thousands in interest Access to money when needed

17. Tips for your fiscal fitness Pay off credit card debt immediately Pay new charges in full each month Avoid retailer financing Avoid overpaying with interest traps Use windfalls to reduce debt Switch to variable rate mortgage Use credit card to pay monthly expenses and pay balance when due

18. What you owe and what you own Save interest today Invest for tomorrow Get on track with debt counseling Speak to your financial advisor