TORONTO – Almost seven out of 10 Canadians are worried about how they could deal with their debts if interest rates rise, a new poll indicates.
The disquieting survey comes after 14 years in which personal debts have grown faster than incomes, and at a time when increases in short-term interest rates are widely anticipated. The poll released Wednesday also found three-quarters of those questioned said they have made little or no headway in paying down debt or increasing savings during in the past year. Previous surveys have found that cutting debt is the No. 1 financial priority of most Canadian adults.
“We know that the expansion in consumer spending over the past two or three years has been probably the most leveraged in recent history,” commented CIBC World Markets economist Benjamin Tal.
“This suggests that people have been borrowing to take advantage of very low interest rates – but also to support a given standard of living.”
The late-September poll of 2002 people by Maritz Research for Manulife Financial found 68 per cent expressed concern about the impact of rising interest rates on their mortgages, credit cards and other financial obligations.
Mortgage costs were identified by 27 per cent as the biggest concern. Credit card debt was the top worry for 17 per cent, while 18 per cent cited car loans, lines of credit or other debt.
For this complete story, please visit 7 in 10 Canadians Worry About Handling Debts if Interest Rates Rise.
