Rising Interest Rates – What Can You Do?

Posted on 4 December 2018

When Interest Rates Go Up, Here’s How You Can Bring Your Costs Down.

The Bank of Canada has given us the gift of rising interest rates during the course of 2018 – have you noticed a change to your finances yet? If you’re feeling the stress of higher interest rates it may be time to explore your debt-free options. Living in the shadow of a big debt problem with high interest can make it very difficult to plan for your future and do the things you want to do with your family. We can help you find a solution that will improve the cash flow in your household and make it easier to do the things you need (and want) to do.

Why rising interest rates right now?

You’ve probably heard of “inflation” before. We are taught in high school economics class that a sustained increase in the price of goods and services is called inflation. The inflation rate has an impact on interest rates – they will always increase if the inflation rate in an economy is high. The higher the inflation rate, the higher you can expect interest rates to soar.

The reason for most hikes in interest rates is a demand from lenders. Lenders look to compensate themselves for the decrease in the value of the money they will be repaid during the future of your loan repayment schedule. What exactly does that mean? Well – if your money will pay for less in the future, it essentially means it’s worth less to the person you borrowed it from. Your person/lender will in turn want a little “extra” money charged via interest payments – to make up for the difference in the value of your money.

What are your options as a homeowner?

Homeowners with equity have multiple options to reduce the interest they pay over time. If you own a home, you may not have thought filing a bankruptcy or a consumer proposal was for you. However, these options can work for you – you do not have to give up your home if you need help with rising interest rates. In fact, your home can be used as a “bargaining chip” to help you repay debt and reduce the interest that you owe to your creditors. Here are a few of the solutions many homeowners consider to reduce interest and consolidate debt:

Your mortgage is considered a “secured” debt. You have to pay your mortgage to keep your home. Your payments protect you from losing your house to the bank. You can renegotiate your mortgage rate to reduce interest. You can even arrange a second mortgage to pay off debt and lower interest.

Rising Interest rates and dealing with your unsecured debt.

If you have debt and are not a homeowner, you have interest-relief options. You can lower, reduce or eliminate your obligation to unreasonable rising interest rates. Unsecured debt is the debt you owe for credit cards, loans, personal income taxes, student loans and more. You can reduce or eliminate interest for these types of debts. Here are the options available to you to clear up debt and improve your cash flow:

  • Consolidation loan at your bank
  • Credit counseling program (debt management plan to pay back all debt without interest)
  • Consumer Proposal (formal debt management plan to pay some debt back with zero interest)
  • Bankruptcy

We can help you understand how all of these options work. We can also help cut your interest payments and get a fresh start. To book a FREE review of your finances with a member of our team please click here or call 1-877-501-4321. You owe it to yourself to find lower interest rates. Improve your cash flow – let us help you discover how great debt freedom feels.

Helpful starting information:

What to Bring to an Appointment

To get the debt help that you need, please bring a list of who you owe and how much to each, a list of everything you own and your monthly household budget. Don’t have everything right away? Don’t worry – We will guide you through each step.

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Your Information

We’ll walk you through our application process. But, if you want to prepare for your debt free assessment consultation in advance, download our information form and fill in what you can.

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Calculate Your Debt Repayment Options

How can you compare your debt repayment options if you don’t know how much they will cost you? Your solution will become much clearer when you are able to compare costs.

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Ready to Be Debt-Free?

If you’re ready to be debt free, it’s time to meet with one of our knowledgeable Licensed Insolvency Trustees at your convenience and get started

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