Let dawn of a new year open eyes to debt control
Anticipating a hangover Saturday morning?
Lots of Canadians will be, which really isn't so bad. If you can't let go on New Year's Eve then maybe you're a little too tightly wrapped.
And you know there will be plenty of free advice on how to deal with that deep, throbbing pain behind your eyes and the unnerving sense that your brain is operating on a three-second delay.
The hangover cure story is a media staple around New Year's Day.
But it's being rivalled by another turn-of-the-year hangover obsession. Borrow too much during a low interest rate binge and you'll be feeling a giant pain in your (empty) bank account when the party ends.
Call it the credit hangover.
Mark Carney has. The Bank of Canada governor warned last week that Canadians are having too much fun drinking from the low-interest-rate cup.
The numbers back him up.
At this time last year Canadians had set a new personal debt record, averaging more than $91,000 per household. There were warnings to reduce spending and pay down debt before rates inevitably rose ... probably before the end of the year.
Now the year is almost done and rates have barely ticked up. Prime is sitting at 3%, apparently not high enough to scare the spenders.
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