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30 Nov

How to Get Out of the Debt Rat-Race and Escape Financial Prison!


Posted by: Brian Marling


This article is provided by Brian Marling, Accredited Mortgage Professional, of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

I call it “financial prison” because even though we do live in the greatest country in the world, even people with good incomes, who are buying their own homes, wind up in “financial prison” instead of financial freedom . And that’s mostly because of what bankers and credit card companies never tell them – and hope you never stop and think about. Just for example, the true interest rate on most home mortgages is about 200% and no, that’s not a misprint. I said 200% because if you have a 25 year amortization you’ll pay for the home about 3 times… on a $150,000 mortgage, you’ll end up paying about $450,000 in interest!  Or what about credit card debt that most people take for granted. It can eat away your financial future like a horrible cancer. If you buy $2,000 worth of STUFF with a typical credit card and make the minimum monthly payment, you’ll wind up paying about 3-5 times what it’s worth. Do you think you can get ahead financially paying 5X’s what things are worth? Not only that, but it will take you about 24 YEARS to pay it off at that rate! That’s why ANYTHING you can do to wipe out credit card debt MUST be considered.

For many of us, and our parents, it took a while to dig the debt hole, but we dug it none the less. Today, however, our young people seem to be struggling right out of the gate. Consider this: The Average College Graduate is $23,186 in Debt!  That’s just the average – many come out with $40 – $50K in debt.  Here are some other interesting stats:

  • Statistically, 6 out of 10 Canadians live paycheque to paycheque, which means if their income stopped for only one pay period they’d have to rely on a LOC or Credit Card to make ends meet 
  • From 1989 to 2006, total credit card charges rose from $69 Billion to $1.8 Trillion; a 2,600% increase 
  • Today the average household credit card debt is $16,007
  • The yearly savings rate of an average Canadian has gone from over 12% of income in the early 90s to under 2% today
  • Household debt inCanadahas more than doubled over the past 10 years
  • 84% percent of college graduates inNorth Americaindicated they needed more education on financial management topics. Parents expect the schools to teach financial literacy and schools expect parents to. The fact is, most parents and teachers are ill equipped to teach students and kids on this subject and, therefore, don’t

Because of the current debt crisis in so many lives right now I am pleased to announce what The Brian Marling Mortgage Team is doing to help Canadians now. Firstly, in light of the above stats, Neighbourhood Dominion Lending Centres is proud to announce the launch of EnRICHed Academy’s “Smart Start For Financial Genius”! This program has been designed to educate young adults (13-23) and their families on the fundamentals that build wealth in an entertaining, funny and entirely interactive way! No program like this currently exists, and the need and demand across North America is at an all-time high! Please call me if you are interested in hosting a seminar or would just like more information.

Secondly, our Financial Coaching Program is really taking off. All coaching is lead by our Certified Professional Coach and owner of Life Catalyst Coaching, Deborah Marling. Deborah can be reached through our office and would be pleased to set up an introductory appointment to discuss your needs and current situation. Deborah is helping many to get out of the debt race and turn their futures around.  Here is what just 1 graduating couple had to say,

“Hi Deb I Hope all is well.  I just wanted to let you know how grateful Carl and I are for all the help you gave us.  You gave us the tools to look at our finances and get ourselves above water. Since attending your sessions it has been possible for us to obtain and do the things we want.  In the past we never had a savings account, our accounts were always into the negative.  If something happened and we needed money we were in trouble.  Let me tell you since our session’s things have happened in our family and we were able to help without using a credit card, without going into the overdraft.  Thank goodness we had your training.  From the time we started our sessions we have never been in our overdraft, we have 4 saving accounts which are growing, and our bills are paid on time. When you talk about financial freedom we see that we are on the way.  However we could not have done this without you.  I just want to say thank you for all the support and the belief you had in both Carl and I.”

Thanks Again

Lisa M. 

Because Neighbourhood DLC is Canada’s Largest Mortgage Team, we can offer you the absolute best products, service, advice & pricing. Call me today,Brian Marling 905-372-7222 for a Personal & Private consultation. 

Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something, then don’t expect different results.  As always you can call us anytime to discuss how we may be able to help you.

SPECIAL NOTE:  We have recently bought our own building and would love for you to drop by and say ‘hello’.  Come see us at The Neighbourhood Professional Centre  9 James Street East in Cobourg – right off Division Street.