The Consolidation Loan - Part 4
The Pool

First Read: Part 1 | Part 2 | Part 3

John and Sara have been doing well with their new budget.  They’re using their credit cards but paying them off in full each month.  They have been in their home for over five years now and the equity is growing. They are starting to get an itch to improve or renovate!

They approach me for a loan for a new pool. And of course along with the new pool comes a hot tub and if you are adding a hot tub might as well update the deck too, right?

They are doing well – the credit cards are paid down each month and their line of credit is used and then paid down again through a month cycle. Because of all of the positive signs I approve a larger line of credit for the upgrade. They are also going to do a lot of the work themselves to save money.

By the end of the summer costs still ended up being more than they expected. The pool lead to a hot tub and new deck, which also lead to new landscaping.

It took most of the summer to get the work completed and at the end of it Sara was back in.  She realized she does not like the large line of credit. It was too daunting and she couldn’t make any head way paying it off. So instead we set this up as a loan secured by their house to ensure the rate was as low as possible.  Once their mortgage comes up for renewal we will blend it all in to one, why you ask?

Well the funds from this loan were used to improve the value of the property, making their home worth more if they want to sell; although they’re not going to want to leave their new yard for a long time!

Speak to a Libro Coach if you have plans for home improvements. We can work out a plan to achieve your upgrade goals.

Tanya

Posted on June 6, 2011 by Tanya Quipp

The Consolidation Loan - Part 3
Credit cards up again

First Read: Part 1 | Part 2

The last time we left off we discovered John and Sara were spending $500 per month more than they were bringing in.  This was a shocker to Sara, and John thought the numbers were wrong.  But numbers don’t lie.

So we sat down together and looked for ways to cut costs - internet bill, phone bill, gym memberships, insurance costs, entertainment and eating out. These were all large bills and always are. Remember they are on the road traveling with their children for sports and activities – eating out is easy BUT expensive. 

The fix: since I had done a consolidation loan once already if we did another one it would be just a band-aid fix.  In a year or so we would be right back in the same situation, which we don’t want. If you make a mistake and you learn from it, then it’s not really not a mistake but part of the road to success!

So we made a deal – once I month I would check in with them to see how the budget is going.  Sara would record their household spending each month.  If we could get in the positive for three months then I would help them out with a consolidation loan.

The first month, when I called Sara she felt wonderful, even with the credit card bills still there and not quite in the positive yet. WHY you ask?  Because she could tell me exactly where all their money was going; even if some of it was still to some bad habits, (like John’s smoking).  But at least it was in the budget and they could track every penny. The second month they were in the positive and knew they were not going backwards.

By the third month Sara was maintaining the positive number at the end of the month so we completed the consolidation loan and this time reduced the LOC limit down to $5000 for emergencies only.  Sara was ecstatic knowing everything was getting taken care of and they were moving ahead.  They were even gathering money in their chequing account each month, money left over!  Sara hadn’t experienced that since she moved out of her parents’ home!

Life was good!!!

If you see yourself in a similar situation, contact a Libro Coach for help and advice on how to own your life!

Stay tuned for part 4 of this series.

Tanya

Posted on May 16, 2011 by Tanya Quipp

John & Sara – the consolidation loan Part 2

First Read: Part 1

In my last blog we met John and Sara – lovely young couple with two cute boys.  Now the boys are a couple years older and are participating in extracurricular activities. The family is on the road a few times each week in the summer driving to ball parks and in the winter they are travelling to hockey arenas.  The kids LOVE it but, what about John and Sara's pocket book?

Sara called this time STRESSED out!  She cannot figure out why all their credit cards are all back up over $5000 on each card. And yes she has multiple cards - three of them actually!  So over $15,000 in debt at 19.99% interest rate!  I'm sure you can understand why she is stressed.

It has been two years since we last did the consolidation and everyone was so happy – remember…  I questioned whether or not this consolidation loan was actually doing them any good.

I spoke to Sara on the phone and she couldn’t figure out what was happening. I requested BOTH Sarah and John come in for a chat, just to talk.  I asked them to bring all of their bills - household, credit cards everything she could lay her hands on.   I’m pretty sure she was not excited about the thought of this appointment.

When they came in we sat down and ran though a budget of what they actually spend in a month.  Well SURPRISE – even though they had a household income over $80,000 annually they were spending approximately $500 more each month then they were bringing in. No wonder the credit cards where getting run up.  It’s never fun to point out to a lovely couple that they’re over spending but, someone has to do it. And who better than a Libro Coach who sticks to the facts?

The problem has been found, now how to fix it?  Another consolidation loan? Line of credit? Watch my next blog for the answer.

Tanya

Posted on March 24, 2011 by Tanya Quipp

John & Sara – the consolidation loan

Hi! I would like to introduce you to a lovely couple John and Sara.  They have been married for seven years and have two cute children ages 5 and 3.  They own their home but they also have a line of credit, credit cards and are just getting by.

So they come to see me about a loan to help out with their cash flow and get everything paid off so they can get away from high interest rates.

This is a wonderful idea!  I assisted them with a consolidation loan and off they go happy!

I thought I helped them. I spoke about paying down the cards each time to avoid the high interest rate, and discussed RESP (Registered Education Saving Plans) for the boys to save for their education.  Both John and Sara work for good companies with some of the best pension plans around.   

John and Sara were happy – we reduced their monthly payments by a few hundred dollars and the interest rate was cut in half on the loan compared to what they were paying on their credit cards.

The question is did I really help them?  Check back for my next blog as we move through John and Sara’s story to see if this consolidation loan really helps them out.

Tanya

Posted on March 16, 2011 by Tanya Quipp

The New Year Resolution!

Here are some tips on how to keep those resolutions going throughout the year:

• If it’s a BIG one – break it down in to small measurable steps
• Write it down
• Tell someone that will support you -  even if you slip up
• Take it one step at a time, one day at a time!
• Remember it’s ok to slip up – don’t beat yourself up

Think of the big picture and how this will improve your life – whatever aspect you choose!

Happy New Year!

Tanya

Posted on December 31, 2010 by Tanya Quipp

Remember - the Credit Card Bill Will Come!

So the Christmas season is in full swing!  We are all rushing around working on getting everything ready for the big day.

But remember the credit card that is smoking in your hand right now will have a bill in the mail within 30 days…and then it needs to be paid.

Hopefully the bill is paid IN FULL so the bargain $20 sweater you purchased doesn’t become a $23 dollar sweater once the interest starts adding on to your credit card.

Try not to make a purchase in a panic!  When that happens most of the time you purchase something the person won’t use, or worse, you blow your budget out of the water, just to get ‘something’! 

Take a breath, go for a walk, and if it is still the best gift think about how you’ll juggle your budget to save in another spot!

To a relaxing holiday season!

Tanya

Posted on December 24, 2010 by Tanya Quipp

Many Hands Make Light Work!

This is a saying I’m sure everyone’s grandmother has said in the past. As a young girl I would role my eyes thinking, “But what can I do to help when my Dad,  Grandpa, and male cousin are all much stronger than me? What are Grandma and I going to do to help on the farm?”

Well this past week my dishwasher broke - YIKES I know! It is one of my favourite appliances in the house. It broke in the middle of one of many family dinners at my house, and when I say family there were 10 or so of us around the table, which generates a lot of dishes -  WITH NO DISHWASHER!

As soon as dinner was over we had people clearing the table, others washing, some drying, and I was putting everything away, all the while a great bustle of family activity and conversation was flowing around the kitchen.  The work was done and we hadn’t even noticed how much we had accomplished.

YES, many hands make light work – plus it’s much more fun!

Tanya

Posted on December 17, 2010 by Tanya Quipp

Insurance = Fun Stuff!

I was speaking with an owner who was recently married. As we were reviewing his file we looked at his insurance, I know, not exactly fun stuff.

His comment was “it’s not just me I have to worry about now!” He had life insurance already, but no disability insurance. Disability insurance is payment protection and covers your mortgage payment if you are off sick or injured. It’s a great feature to have on your mortgage. If you are injured, knowing your payment will be covered allows you to focus your energy on healing and getting back to work, instead of worrying about making payments.

Disability income from work or the government could cover regular household expenses. This owner decided the increase in premium was well worth the security, especially since his wife didn’t have a full time job. Hard to cover household bills on a part time job!

He left my office happy knowing that if he was injured his mortgage payment was protected and they wouldn’t have to worry about it!

What questions do you have about insurance? It’s a pretty complicated topic and most everyone has questions. Post them below and I’ll answer them here.

Tanya

Posted on December 10, 2010 by Tanya Quipp

Santa Claus is Coming!

The Christmas season is fast approaching...faster than most of us would like.  Why is it every time we turn around it is money out of our pocket?  Is there something that you can enjoy as a family that doesn’t cost money?

YES!  Check out your local Christmas parade!  In my area the Stratford parade was November 28.  What’s better than getting bundled up to watch a parade full of floats with twinkling lights?  Life is even better if you bring a thermos of hot chocolate for everyone to enjoy!

"Santa Claus is coming to town...!"

Photo by Loozrboy

Tanya

Posted on November 30, 2010 by Tanya Quipp

Plan Your Giving

Photo By Vince Alongi

Christmas is just over one month away! YIKES – time flies when we are having fun! So remember when you are heading out to do your Christmas shopping, attack it with a PLAN! 

I know it sounds daunting – making a list of everyone you need to purchase a gift for (Mom, Dad, kids and teachers, etc.). Even if you have no idea what to get them put a dollar amount of what you want/can afford to spend. Then you can see the grand total before you start spending and ensure that you can afford the entire list. This also gives you time to adjust the budget before you start the shopping.

Christmas will be enjoyable for everyone involved!

Tanya

Posted on November 19, 2010 by Tanya Quipp

Helpful Home Tips For The Winter

Photo By joiseyshowaa

November is here along with the cold weather. There are a few things we have to do around the house to protect our lovely homes. If you miss these it might end up costing you in the spring, so be sure to check them off your list:

• Have your furnace inspected by a qualified service company (minimum every 2 years)
• If it’s an off year check the belt and replace the filter on your furnace, after you have discounted the power (no injuries please)
• Check smoke, carbon monoxide & security alarms, and replace batteries
• Remove screens from windows and install storm windows if you have them
• Check all your doors, weather stripping to avoid any drafts
• Clean leaves from eaves troughs and roof, and test the down spouts to make sure there is no blockage
• Drain and store outdoor hoses (this is one we always miss!). Shut off interior valves to outside taps.
• Test your well water – this should be done every six months
• Winterize your landscaping and gardens and tuck away your outdoor furniture. Also remember your young trees and bushes, protect them so they will be healthy in the spring.

These are a few of the main items listed for fall maintenance under the Canada Mortgage and Housing Corporation (CMHC) website go check it out for further details.

I hope this list is helpful to you to ensure the hard work you have put in to your home lasts for many years!

What other things have you done in the past to protect your home for the winter? Please share your tips below!

Tanya

Posted on November 10, 2010 by Tanya Quipp

Halloween Is Done

Halloween is done, but the candy is still floating around!  If your kids are like mine (or any kid for that fact), they eat it right before dinner! So, what to do with the leftovers?

I have a few suggestions, donate the candy to your colleagues at work… we all need some sugar to get us through the day…just kidding!

My favourite (and I know more than one family does this trick) tuck the candy away. You must find a good hiding spot that the kids won’t find.  Then when you head out to a place that has a booth (e.g. the arena or any other function that the kids may be tempted for a treat) pull out the good old Halloween candy.

This will save a lot of cash. Have you ever sat down and calculated how much you have blown at the booth or variety store on a treat here and there?  A lot more than planned, I’m sure! 

Good luck and enjoy the sugar letdown!

Tanya

Posted on November 5, 2010 by Tanya Quipp

It's ALL About The Hourly Wage

As I sat and watched my 7 year old son get his tooth filled today, freezing, drilling the whole bit. I wondered how much this was going to cost?  

I found out the office policy is to pay as soon as the work is complete. Out comes my MasterCard for the $225 (remember Choice Reward points!) I asked about my health coverage, thank goodness I have it.  The dental office submits it and the funds come to me directly.  Perfect; when it arrives I can apply it to my MasterCard.

What about the person that doesn't have $225 to cover the cost of their child's filling? It needed to be done.  The week before he looked like a chipmunk due to an infection and he was in pain!

The lesson is, when you are looking to negotiate earnings at your job, try and get some health coverage or a large increase in hourly wage so you can set aside funds in case of emergencies!

Tanya

Posted on October 27, 2010 by Tanya Quipp

Set a Goal!

I have people come in to my office wanting me to tell them what to do with their money. That’s great, I can help… but you have to set your savings goal.

If you know you want to travel or buy a house in two years I can help you. Together we can set up the savings plan to work towards that goal. If you don’t know what you want… will you really save? I’m guessing not.

Tanya

Posted on October 20, 2010 by Tanya Quipp

Track The Pennies... Dollars Will Follow

It’s interesting how people walk into my office and tell me they would like to save more. I ask what they’d like to save for and they tell me, "I don’t know."  I ask them, "How much can you afford to put aside?" Many times they have no idea. They just know that they never have any savings.

The first step to being in control of your finances is to know where all the pennies go.

If you track the pennies the dollars will follow. It sounds simple, but if you track every penny spent it will startle you how much money is truly spent in a day.

I challenge you to start tracking your pennies. How much can you save in a week?

Tanya

Posted on October 8, 2010 by Tanya Quipp

Hi - What to Look Forward To!

I’m Tanya Quipp! I have been working for Libro Financial Group since 1998. Wow that’s a long time!

My approach to finances is to make sure your money is working for you. In 1998 I started as a Service Representative (teller) and I have worked my way up to the position of Lending Specialist. In the process I have learned a lot of different tips and have done special training.

Before I joined the credit union I graduated from the University of Guelph – Bachelor of Science, Honours Human Kinetics. So I know how the body moves and works. How does that help me here you ask? Well I enjoy working with people and helping them feel better, no matter if it’s physical or financial.

So that’s why I enjoy talking to people each day about all their financial issues! Plus I’m a mother of two busy little boys with a husband in the mix to keep track of.  We are normally running in all directions with activities, so I can understand the craziness of everyone’s world.  I understand that a “wealthier me” for a lot of people is not worrying about the details!

If you have questions or a specific topic you would like me to address feel free to send it in!

Tanya

Posted on September 29, 2010 by Tanya Quipp

I have been with Libro since 1998. I have been through many different training programs with my main goal of helping you make good financial decisions!

Tanya's wealthier self: More time with my children & husband, more travel and extra time to dedicate to my volunteer projects.

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