To Clients: Managing debt

By Staff | April 8, 2008 | Last updated on April 8, 2008
2 min read

Dear [Client’s name]:

Spring has finally arrived and warmer weather is just around the corner. At this time of year, many of us start to think about home renovations, garden projects and summer vacations. But while we often know what we want to accomplish, sometimes we are not sure where the money will come from.

That’s where I might be able to help. If you’re planning for a large expense this year, you may wish to meet with me to discuss some of the following:

Budget management

I can work with you to create a household budget that will help you establish control over your finances. Together we can determine what current expenditures need to be eliminated or adjusted so you can achieve your short-term goals.

Debt management

I can help you come up with a strategy for eliminating debt. For example, are you paying too much on your credit cards and loans? Instead of paying 18% to 20% interest for consumer debt, it may make sense to consolidate your loans for a much lower rate — perhaps as little as 6%, depending on your credit history and current financial situation.

More Running on empty: Dealing with client debt
Make your clients’ debt disappear Good debt vs. bad debt New legislation makes bankruptcy more expensive Getting clients to disclose debts is vital Debt in brief To Clients: Managing debt
Running on empty: Dealing with client debt mainpage

If you think a move like this could help free up money you need for other things, I’d be happy to explain your options and refer you to a loan officer or mortgage specialist who can be of assistance.

Short-term savings vehicles

Most day-to-day bank accounts pay little or no interest. If you’d like to set aside funds for an upcoming expense, I can offer a number of specialized, higher-interest savings vehicles that may suit your needs.

By investing in a savings account like [insert high-interest savings account product here], you could be earning significantly higher returns. GICs, money market, or T-bill accounts could be other alternatives. And for next year’s savings strategy, we’ll have the new Tax-Free Savings Account, which will allow you to contribute $5,000 annually and have investment income, including capital gains, accumulate tax-free. Withdrawals will also be tax-free.

If there are things you would like to accomplish before next winter, don’t delay. Please don’t hesitate to contact me at the number above.


[Your signature]

[Your name]


This Special Report is brought to you by: staff


The staff of have been covering news for financial advisors since 1998.