By Matt Fetinko

Interest hikes starting to take a toll

Jan 22, 2019 | 3:05 PM

PRINCE GEORGE — Five interest rate hikes since 2017 are causing issues for Prince George residents who are starting to feel the pinch.

MNP data shows 51 percent of British Columbians admit the effects are getting to them, a six percent increase from September, but that is not all.

“Our households are carrying more debt than ever. For every dollar we make, we’re spending somewhere close to $1.70,” said Melody Desmarais, Insolvency Trustee at John Beverley & Associates in PG. “When interest rates go up, you’re not able to make your consumer debt payments so people are carrying lines of credit or credit cards; your mortgage goes up, now you can’t afford your credit card payment. So those debt ratios when we are carrying so much consumer debt affects everyone.”

Many PG residents need to use services of organizations like The Salvation Army’s thrift store and food bank to keep their heads above water. In numerous cases, families are having to choose between comfort and the essentials.

“Food is big and, of course, we just need it daily,” explained Roy Law, Community Services Director with the PG Salvation Army. “That’s not an expense you can cut. Maybe you can cut your heat bill a little bit by tightening up your coat and things like that but you need to eat.”

Special Olympics

PG Special Olympics invites you to annual rhythmic gymnastics event

1h ago

Structure fire

Resident rescued from Domano fire

7h ago

Commercial structure fire

Fire engulfs Nelly's Pub

7h ago

Anyone needing to pinch pennies is recommended to do a budget or net-worth statement, while also making adequate payments to their debt, so they can get back in the black. Desmarais said, “if we’re making minimum payments on these credit cards or lines of credit, they’re not actually being paid off.

“The goal would be to eliminate the debt and make sure you can make a payment on it. If you can’t, then you need to see a licensed professional to try and either budget your way out of it or compromise the debt in some manner.”

No interest hikes are projected for 2019, a promising forecast for the third of British Columbians who fear any further increases could push them to bankruptcy.

by Matt Fetinko

Click here to report an error or typo in this article

Interest hikes starting to take a toll

What's Trending