Rising interest rates made headlines across Canada during much of 2017 and continue to in 2018. Do you know what an increase in rates means for you?
Higher interest equals higher monthly payments on everything from mortgages to personal loans. In other words, you’re paying more to borrow money.
What might seem like a small rate hike can mean the difference between debt or no debt for many Canadians. So how can you avoid the financial stress that often accompanies a rise in rates?
How to manage increasing interest rates
You should thoroughly review your finances to see how a rate increase will impact your various payments. Your best bet? Pay down as much debt as possible, starting with debts with the highest interest. You may also want to consider consolidating a few of your higher interest debts into one loan with a lower interest rate.