Back in July, the Bank of Canada raised the Canadian interest rate for the first time in 10 years. Then, in September, it happened again. This has been cause for concern amongst some. Those fearing a further increase (as many economists predict) could be troublesome for an economy still on the up-and-up.
According to the Financial Post, “Officials within Prime Minister Justin Trudeau’s government are concerned the Bank of Canada is moving too quickly to raise interest rates, fearing higher borrowing costs could inadvertently trigger a downturn…The officials, speaking anonymously because they’re not authorized to comment, are concerned a series of rate hikes would lead consumers to claw back spending, stunting a recovery from a two-year oil shock.”
With a further rate increase, borrowing rates would jump yet again, causing many Canadians financial stress. While fixed-rate mortgages aren’t susceptible until renewal, those with variable rate mortgages are probably already feeling the heat, as are those with home equity lines of credit and other personal LOCs.
For those with a significant amount of debt, the extra costs of borrowing could make it harder to meet financial obligations, leading to missed payments or the further accumulation of costly debt. So, what’s the solution?
Getting those debts straightened out before Canadian interest rates increase again is a good strategy. One such method is a consumer proposal. A consumer proposal can help you settle your debts with creditors, often resulting in lower overall total payments and one, easy-to-manage monthly payment with no interest. You also know exactly when you will be debt free – so no more worrying about the future!
At Spergel, we have the tools and expertise to help you get ready should Canadian interest rates rise again. Don’t continue to struggle – we offer real relief.
Call us today, toll free, for a free consultation: 310-4321.