Why there is no need to panic !

Hmmmm how to open this....

Ok simply put it will be.

The massive debt problems in the United States and Europe have taken the pressure off of Canadians with any sort of amassed debt they may be carrying over and above what is considered a normal amount.

Remember when the BOC Governor, Mr. Mark Carney and the Finance Minister, Mr. Jim Flaherty were warning not too long ago that high personal debt levels could become unmanageable?

Especially when the Interest rates would begin to rise...

Well, interest rates aren’t going anywhere for now.

Our National debt problem is mild when compared to the US and some of our cousins from across the Atlantic. The issue here in Canada is personal debt. It has hit record levels in relation to income and continues to grow, although at markedly slower levels than before.

The massive global economic upsets do us no good in helping to lower personal debt, but they do make it easy to carry that debt.

The gist of it all...

With economic growth coming from the US frustratingly weak, Canada is bound to feel the effects. Debt-cutting from our southern neighbor and some of the cross Atlantic cousins of ours could further restrict growth around the world.

The BOC is also all tied up by the fact that an Interest rate increase here while the rate remains low in the United States would drive our dollar higher. That would be horrible for our manufacturing sector because of its Export based products.

All of this means that the average Canadian with their above average debt loads will get a reprieve from the higher interest rates they’ve been warned about for more than a year.

There are a few consequences that may come of this, but I won't bore you with weakened job growth or slower than expected housing starts...

This is why now more than ever, you should take action in reducing your debts, even while borrowing more may seem attractive with these ultra low Interest rates.

Does that make sense?

Ultimately what I am saying is this:

It will not matter much in 6 months time if the Economy has affected your job status to the point of a reduction in hours or perhaps being laid off. No it won't matter much then that you have this ultra-low interest rate on a massive mortgage.

What will matter is this....What monthly payment you need to make.

Make a conscious effort to stay within your means. Tread carefully my friends....do not let the rates fool you. When you are hitting rock bottom like we are now, there is no where to go but up.

Make sure you are on the right side of that curve.

Click through to my website and see some additional information to go with this blog.
www.kevynoyhenart.ca

I am never too busy to answer your questions.

Enjoy this fantastic day.

Kev