Rates are going up everywhere. We’ve all seen how quickly the panicked Bank of Canada moved to hike the cost of money. In the U.S., the interest rate for a fixed 30 year mortgage is now approaching 6%, where not long ago it was at almost 2%. Inflation remains stubborn, and where we see prices stabilize or fall for one class of goods, it rises for another. Debt is going up as higher prices and inflation eat into any wage gains, leaving more and more folks with less disposable income. Those who have been most affected are people with large mortgages, credit cards, lines of credit, and car payments. Debt costs will continue going up as long as inflation still lives and central banks keep raising rates. The prime rate therein goes up and lenders have to respond with higher rates. Mortgage costs rise, credit card interest gets adjusted, the list goes on. The next big economic and financial challenge that is likely on its way is a recession.
We’re seeing employment declines begin to appear again in Ontario, so if we find ourselves in a recession it’s a given that there will be job losses. If we do end up in a recession, it’s hard to predict how long it will last or how many jobs will be lost – there are bulls and bears arguing both ends given the complexity of the economic and financial environment. Either way higher rates and uncertainty are good signals to consolidate multiple debts into a simple, clean, easy, and convenient transaction. Turn 5 monthly payments into one with a Tembo debt consolidation loan. Wipe out high interest credit card bills. Clear your line of credit. Take pressure off your credit score. And most importantly, save money by avoiding the higher rates the big banks and lenders are going to go ahead with when the Bank of Canada raises rates again. The financial press are almost unanimously expecting another 50 basis point rate hike in September.
A Tembo debt consolidation loan is a great way to give yourself protection and security from a potential job loss or the harsh effects of a recession – you won’t worry about your credit cards or the balance on the line of credit. Higher central bank rates aren’t the only force which will amplify debt costs. Media reports show that Telus is putting forward a request to federal regulators to add a 1.5% surcharge to the monthly phone bills of customers who pay their bills with credit cards. For a theoretical customer whose cellphone bill is $100, the charge would bring their bill to $106.66 — $100 for their basic bill, plus $5 for GST, a $1.58 surcharge for the new fee on top of that, plus another eight cents in GST on the surcharge. Telus wants to take advantage of the high fees credit card companies charge for their services by adding costs to consumers. Costs across the economy are going up. Take advantage of your housing equity to consolidate your debts, pay down liabilities fast, and simplify your payments – please visit www.tembofinancial.com and give us a call at 1-844-238-6717!