Canadian Personal Finance Blog

I suspect this is a precursor to what will be happening in Canada very soon, but the Central bank in the UK up’ed their key interest rate to 5.75% (this is the FIFTH (5) time they have raised this rate over the past 12 months). Does this directly cause harm in my financial life? Not yet, but the ripples are going to come soon. The reasons given were inflation concerns and a roaring Housing market, sounds familiar?

What can YOU do to combat these coming interest increases?:

• Lower your debts now, while rates are lower. It’s obvious so do it!
• Lock in for a term at whatever rates you can get now, if you can afford the rate currently, but aren’t sure you can afford a large rate increase
• Save more to buy big ticket items, so you don’t carry as much debt when you make the purchase
• Remember all rates are negotiable, so talk to your bank as well

Negotiation is possible in all areas, but you have to be willing to do it, stick in your heals and also be willing to walk away if you feel the “deal” is not to your liking. It’s your money, the more you keep, the better!