Debt Consolidation a Timely Issue for Consumers
Households and individuals considering their debt consolidation options are in good company – particularly in light of the June 18th comments of Bank of Canada Governor, Mark Carney, that were made, it seems, in preparation for the upcoming G20 summit in Toronto. An analysis of Mr. Carney’s comments in The Financial Post points out that the process of “paring back of debt amongst households, banks and governments’ has just begun.
The consensus of Bay Street analysts, according to the FP, is that a 25 point (.25%) interest rate hike is likely in mid-July when the Bank of Canada reviews its key lending rate. This, despite comments from Mr. Carney that a further rate hike is not necessarily a sure thing given the aggressive budget-cutting measures in the European Union (and elsewhere) that could impair global growth by sucking government stimulus funds out of the economy.
For consumers investigating strategies for managing their own household budget and debt – credit cars, car loans, mortgages etc. – debt consolidation (whether through a line of credit, home equity loan or other option) is an option that may be both right and timely, as in the medium-term there is likely to be upward pressure for central banks to raise rates.
A knowledgeable mortgage broker, will be able to help individuals and families structure a debt consolidation strategy that makes sense for them in light of both their personal circumstances and those of the overall broader market.
