(Steven) Managing debt and preventing debt

are two of the most challenging aspects
of financial literacy.

Today, in our series
on financial literacy,

we're speaking with Bonnie Bloedow,

a financial counsellor
with SISIP Financial.

Hi, Bonnie.

(Bonnie) Hi.

(Steven) So tell me,

what is the most important
aspect of managing debt?

(Bonnie) In this day and age,
debt is basically inevitable.

However, education and research
prior to signing on the dotted line

is probably the best thing
that you can do for yourself.

Do some research,

look at what you're getting into,
explore your interest rates,

and most importantly,

make sure before you sign
that the new payment can actually fit into

your day-to-day budget or spending plan.

Before we get into debt,
it's always so much easier

to solve a small problem than a large one,

but putting a plan in place,
thinking preventatively

is always the optimum solution

so you can make educated
and informed decisions moving forward.

(Steven) What about the person
who already has that dark cloud of debt

over their heads?

What can you do for them?

(Bonnie) If you've found yourself
already into a situation of debt

that is becoming unmanageable,
the first step would be to

give a financial counsellor at SISIP
a call to have a discussion.

Let's chat it out,
see what the situation is

and then look to explore some options
to perhaps alleviate that problem.

(Steven) This information
is very smart and helpful,

but what do you say to the people
who are embarrassed,

who, you know,
they're shy about getting help

or letting someone
into their personal life?

I mean, because finances,
bank account statements, debt--

that's very, very personal.

How do you get through
to those people, Bonnie?

(Bonnie) First of all, by agreeing
that I understand this is very personal.

It's very uncomfortable to have to
put all of your personal business

on the table in front
of a complete stranger.

So, ideally, again, if we can
build a rapport with our clients,

as financial counsellors with SISIP,
we understand our client base,

we understand our military members
and their families,

and our goal as, again,
SISIP financial counsellors

is to help the members and their families
be successful and financially healthy.

So if that gives some sort of assistance,

and we're here to help,

we're not here to speak
to your chain of command.

We're not here to share
your personal information.

It is confidential and we do have a goal

of finding that successful outcome.

We ask for a lot of information
to do a financial assessment.

We want to see some historical data--

it could be bank statements,
it could be credit card statements--

and not to judge any of the spending
that we may witness,

it's to get an overall picture
and a very clear picture

of spending habits,

bill payments, etc.,

so that we can develop a snapshot
of your current financial situation,

talk about what is the issue
that you would like to have addressed

and then look for solutions.

I don't know that I could give you
an absolute success rate.

Every situation is different

and every client situation is just
adjudicated on its own merits.

So, the more information
that a client is able to share with us,

the better advice that we can give
and the most accurate advice

to actually look for a long-term solution
versus a Band-Aid.

(Steven) One of the big problems
that I would face, or still face,

is I'm an impulse buyer.

I go into Costco and I go in for,
you know, a couple of steaks,

some fruits and vegetables,

"Oh, my goodness!
Look, there's that barbecue

that could cook 42 steaks at once,
but I need that barbecue!"

I have to have that barbecue, Bonnie.

You know I have to have it.

I know it's $2,000, Bonnie,
but I need that barbecue.

How do you stop me, Bonnie?

(Bonnie) Well, we are all
in charge of our own destinies,

as a friend of mine likes to say,

but in a situation like that,

that's not uncommon.

We get seduced by sales tactics
or the shiny new item

that will probably forever
change our lives.

But when we're discussing your finances,

and if you've already expressed

that there is a situation
you'd like to address,

let's talk about goals.

What's really important to you?

Why are you here seeing me?

If you're stressed,

for example, you're stressed now,

what if you went and bought something
you didn't really need?

Let's talk about needs versus wants.

What's going to happen in your life,
Steven, if you don't buy that barbecue

that grills 42 steaks at a time?

What will actually the outcome be
if you don't have it?

And remember what your
personal goals were,

it was maybe to get rid of some debt

or perhaps you're saving
for something else.

Maybe you need to replace your car,
or you want a down payment on your house,

or you're starting a family, etc., etc.

Let's talk about your goals.

It will help you stay on point
when you're trying to make a decision.

Do I overspend?

Do I act on this impulse
to buy the big barbecue

or do I stick to my plan that I developed
with my SISIP financial counsellor

because I went to them with a goal
of x, whatever x might have been?

(Steven) Having all of you
SISIP financial counsellors

available to help us is amazing

but who can access your services?

(Bonnie) We offer services
for financial counselling

to serving members of the Canadian Forces
and their spouses or partners.

We have other services available
to members who are released or retired

and that would be
our SISIP insurance plans.

Our SISIP financial planners are available
whether you're serving or released.

We offer services on a holistic basis.

So what does that mean?

Simply that we want to look at
your overall financial health.

So we look at a foundation
or fundamentals of, for example,

life insurance coverage
to protect your family.

We look at the money management
and budgeting, should you require that,

to help you be financially healthy,

and look for areas that perhaps
you can start saving for things

that are irregular,

like planning for the tires
you need next year,

or fixing your brakes,

or you've got kids and you have to
replace their clothing through the year,

the holidays are coming
and you want to do some spending

at the holiday season,

and then finding places where you can
start saving for emergencies.

And back to goals,

we want to also try to find
some money in your budget

that we can get you over, maybe,
with a financial planner

to start saving for your retirement,

or your children's education,
or your down payment on your house--

again, towards your personal goals.

(Steven) Bonnie, thank you for this.

(Bonnie) Thanks for having me.
Appreciate the time.

(Steven) Bonnie Bloedow
is a financial counsellor

with SISIP Financial.