BMO Financial Group

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

November 10, 2011 11:17 ET

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 and

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