Canadians have many financial worries thanks to the pandemic, of which the largest issue right now is interest rates.
During the heart of the pandemic, we saw the lowest interest rates available in decades. This made it easy for millions to get in over their head in debt. Whether it’s consumer debt (credit cards) or mortgage debt, millions are wondering how they’ll make ends meet.
What caused this?
Credit Card Debt
Millions of Canadians needed credit cards to get by during the heart of the pandemic. For many, it was the only means of paying bills or getting groceries. But now that the bills have piled up and the credit card debt is higher, millions of consumers wonder how they will make ends meet.
Millions of Canadians also want to spend more. With the economy opening up again, they want to get out and ‘back to life.’ They feel like they’ve missed out on so much that they’re willing to use their credit cards to pay for dining and entertainment.
Low Mortgage Rates and Rising House Prices
Another large cause of pandemic anxiety has to do with housing. With crazy low-interest rates, millions of people bought houses, but the higher prices have caused many to become house poor.
If your mortgage payment takes up too much of your monthly income, you may find it difficult to pay your everyday living expenses or keep up with other bills.
Rising Consumer Interest Rates
With the large amount of debt, most consumers have, everyone worries about interest rates increasing again. It always happens – interest rates fall during times of incredible need, such as the pandemic, but then they increase again when things settle down.
If interest rates stay low forever, the economy wouldn’t survive. To avoid overspending and the disaster it could cause, interest rates increase, which puts many consumers in a panic.
If you have a large amount of consumer debt and interest rates increase, it could be hard to stay on top of your responsibilities, putting you behind on your bills.
Lack of Financial Support
Finally, consumers worry about what will happen when the pandemic support ends. For many, it was the only way they stayed on top of their responsibilities and with millions still unemployed, it can feel impossible to get back on track.
Get the Support you Need
If you see yourself in any or all of the situations above, it’s time to get help. You aren’t in this alone – millions of people will suffer from financial issues as the economy gets back to ‘normal’. Fortunately, there is plenty of support available and hiring a reputable credit counselor is the first step.
A credit counselor can help you understand your options, weigh the pros and cons of each choice and decide what’s right for you. There’s no shame in being in over your head in debt – we were all in the same boat. But now it’s time to figure out how to handle it the right way. Give us a call today for your free consultation.