After a near decade long streak of low borrowing costs and easy credit from banks, Canadians are carrying record levels of debt. With the Bank of Canada raising interest rates on July 12, that financial burden may soon become more than many can manage. Even more worrisome are warnings from economists that another hike could be coming before the end of the year and concerns the country’s housing bubble is about to burst. Amidst the fear and uncertainty, many Canadian households are going to want to start making some major changes now if they want to weather the coming storm.
A recent poll conducted by Ipsos on behalf of MNP LTD reveals that more than a quarter of mortgage holders across the country already feel they are “in over their head” with debt. At the same time, nearly half of homeowners are concerned about the impact the new rates will have on their finances with 70 per cent saying they would struggle to cope with a 1 per cent increase.
There are a number of things Canadian consumers can do now to relieve the strain of rising payments. This includes curbing their spending, paying down their credit card balances and (when possible) making payments against the principal of their mortgage.
An original article discussing the Ipsos poll and concern amongst Canadians was published online on July 10, 2017.
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