Large Number Of Canadians Won’t Be Able To Cope With Rising Interest Rate

A large number of Canadians are going to find it difficult to cope with the 1 per cent increase in interest rates, the 700,000 are at an invulnerable position with the rates increasing by just 0.25 per cent. A experiment by TransUnion showed that most Canadians are in a good position to adapt to the increase but the high levels of debt is a sign that even if there is a $50 incline in the monthly expenditures could be a point of angle.

The TransUnion director of research and industry analysis in Canada, Jason Wang said: “Despite rising debt loads for Canadians, our study found that the far majority of consumers will be able to manage an interest rate hike of up to one percent. Our assessment, though, identified a subset of the population of nearly one million borrowers who may face financial challenges when rates rise.”

There are 26 million Canadians with credit according to the study, which average the each of the products to be averaged at 3.7 per products. The study were attentive to products that the change of interest rates had an effect on more.