The Bank of Canada prime interest rate is remaining at 1.5% for September 2018.

On September 5, 2018, the Bank of Canada (BOC) announced its decision to keep rates the same, referencing high gas prices, uncertain trade policies, and a stabilizing housing market.

Canadian interest rates have increased four times since July of 2017, going from 0.5% to 1.5%. The last hike came in July of 2018.

Interest rates affect all forms of non-fixed (variable) debt. This might include unpaid bills, lines of credit, variable-rate mortgages, and, of course, credit card debt.

Credit card interest rates already tend to be very high — much higher than many loans. Added BOC interest rate increases would only bring that amount up more.

Equifax Canada estimates that Canadians carry $599 billion worth of non-mortgage consumer debt, including credit cards, auto loans, and the like. They predict that the amount of delinquencies — people who can’t or don’t pay their debts on time each month — will increase by the end of 2018.

Part of that prediction is based on a decline in the number of people who completely pay off their credit card bills each month. Even if you make the minimum payment every month, you will still be charged interest on the remaining balance.

The September rate hold can give Canadians a chance to deal with outstanding debts — particularly credit card debt interest.

Consider the following options for managing credit card debts, or other consumer loans, that you can’t pay off in full:

• Seek a consolidation loan with a fixed-interest rate.
• Don’t open up any more credit cards if you can’t pay the balances on existing ones.
• If you have home equity available, consider using it to pay off outstanding debts.
• Consider filing for a consumer proposal or filing for bankruptcy.

At DebtCare, we can help you break free from your debt. We will assess your financial situation and make a plan to manage it before the next Bank of Canada prime interest rate increase.

There is another BOC announcement scheduled for October 24, 2018. Many economists are predicting rates will increase again at that time.

Don’t wait — get in touch with us before October 24.

Call 1-888-890-0888 or visit www.debtcare.ca for a free consultation.