When the Bank of Canada raises interest rates, the big banks raise their prime lending rate, which results in higher mortgage payments when you renew your mortgage and higher unsecured debt servicing costs.
A recent survey has shown that many Canadians struggle with covering their current living expenses and debt service. Many Canadians already have no wiggle room at the end of the month to deal with larger mortgage payments and higher monthly debt repayments as interest rates rise. Facing a mortgage renewal at a higher interest rate may seem daunting.
Making a Budget
If you are in debt and struggling to make ends meet you can start by making a budget to reduce some discretionary expenses such as entertainment or clothing, considering all areas where you may be able to cut costs. When making your budget, you could also try to increase income by getting a second job or selling things; however these measures simply may not be enough when facing rising interest rates and a mortgage renewal.
Free Financial Consultation
If you are struggling to make ends meet, seek help from Hardie & Kelly Inc. We are federally licensed and can provide a free financial consultation to review your debt, provide options to deal with your debt, stop collection calls, interest, reduce your payments and eliminate your debt problem.
Call Hardie & Kelly at 403 777 9999 or text to 403 909 9572.Previous: "Break The Credit Card Debt Cycle" Next: "How Debt Affects Your Life"