Canada’s interest rate can have a big influence over an individual’s ability to manage debt and control their finances. Within less than a year, the Bank of Canada has increased its interest rate 3 times. This is a common theme covered in our previous blogs: The Canadian Economy Powered Up, The Bank of Canada Increases Interest rates Again, and Interest Rates Increase Another 0.25 Percent.
On April 18th, 2018, it was rumored that there would be a fourth rate hike. But, when the announcement was made, the interest rate was maintained at 1.25%. Even still, there is talk of another increase with Canada’s interest rate coming soon.
In addition, with the average Canadians debt to disposable income ratio at approximately 1.74%, another interest rate hike could significantly affect an individual’s ability to pay back their debts.
Tips on Managing your Finances
When dealing with external factors that affect your finances, extra caution should be taken before making any major purchases. A common major purchase that most individuals make is for home furnishings. In making these purchases, some considerations should include:
Don’t think short term: look at the big picture and avoid the temptation of “rent-to-own.” The majority, if not all financing providing by furnishing companies will cost more long-term.
Be cautious of the “Bait and Switch”: this is where an amazing offer is presented, but more than likely, is never available. Instead, a sales representative will try to persuade you to make a more expensive purchase. A way to avoid this is to thoroughly research your purchase beforehand.
Keep records: it is very important to maintain and organize any documents, such as receipts or invoices, that are associated with your purchase. This is important in-case something were to go wrong with your purchase, and proof of ownership was required. A tip that might help with this is to photograph all of your documents to create electronic records.
What to do if your Debt is Substantial
This information can only help prevent you from getting into debt. For those that carry a significant debt, it is in your best interest to seek a finance professional’s help.
We are Licensed Insolvency Trustees with the knowledge and experience in addressing the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.
If you need help, contact us by emailing email@example.com or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.
Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.