“As historically low rates start to rise there is a critical balancing act now taking place.
Rising interest rates are great news for savers and investors but terrible news for those carrying large debts
The Bank of Canada is raising the interest rates gradually which gives consumers some time to pay down their debts before they become unmanageable. For home owners rising interest rates are a serious concern as even a quarter to half percent rise can cost $100`s of dollars in extra interest per month
To avoid being caught out again Canadians must become more financially literate and learn how to plan for their financial future taking into account factors such as rising and falling interest rates, inflation and future cash flow etc.” – Peter Temple
4 Pillars’ Reg Rocha’s writes, “back in 2008, the world was knocked into one of the worst recessions we had seen in decades. Canada was by no means immune. Over-leveraged Canadians lost property and businesses, retirement investments tanked and consumer confidence plummeted.”
Thank you Ruth Enyedi and Jonathan Petersson of Unsplash for photos.