Skip navigation
    Canada
    Canada
    Flag of the United States of America US
    News Releases Signup for News Alerts Media Contacts Executive Bios Corporate Fact Sheet BMO Expert Insights
    Navigation skipped

    News Releases

    Financial Literacy Month-BMO's Tip of the Day: Consolidate High-Interest Debt with a Line of Credit to Reduce Costs

    TORONTO, ONTARIO--(Marketwire - Nov. 10, 2011) - To mark Financial Literacy Month, which was launched by Finance Minister Jim Flaherty, BMO is releasing a series of financial tips throughout November. As part of Making Money Make Sense and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day to day finances more effectively.

    BMO's Tip of the Day: Use a line of credit to consolidate high-interest debt and save on interest costs.

    • Some department store credit cards can have interest rates as high as 29 per cent. According to BMO SmartSteps, for every $1000 in balance that you carry, you could save up to $230 each year by using a line of credit instead (based on a Personal Line of Credit interest rate of Prime +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 interest debt with a personal line of credit to help make paying down debt more manageable."

    BMO Financial Literacy Month Tips

    November 1: Pay more than the minimum payment on a credit card balance.

    November 2: Choose a shorter amortization for your mortgage.

    November 3: Contribute to a child's Registered Education Savings Plan (RESP) as early as possible.

    November 4: Invest in a Tax-Free Savings Account (TFSA) to maximize your savings.

    November 7: Switch to weekly mortgage payments to save interest and become debt-free faster.

    November 8: Take advantage of credit card travel insurance to lower costs.

    November 9: Start early and contribute often to your investment account, rather than waiting to invest.

    For more on financial literacy, BMO encourages Canadians to visit http://www.financialliteracymonth.ca/ and http://www.bmo.com/home/about/banking/corporate-responsibility/customers/financial-literacy.

    For further information:
    Media Contacts:
    Matt Duffin, Toronto
    416-867-3996
    matthew.duffin@bmo.com

    Sarah Bensadoun, Montreal
    514-877-1101
    sarah.bensadoun@bmo.com

    Laurie Grant, Vancouver
    604-665-7596
    laurie.grant@bmo.com