11/25/2021
https://financialpost.com/moneywise/canadian-heloc-borrowing-is-skyrocketing-causing-experts-to-worry
If you’re looking into borrowing options (HELOC or Personal Loan, there are a few things the Financial Consumer Agency of Canada advises borrowers do when it looks like interest rates may go up.
1. Make sure you have an emergency fund set up.Cut your expenses so you have more money on hand to tackle debt.
2. Only borrow what you can afford to repay, which is often a fraction of the amount you’re able to borrow.
3. Consider whether taking on more debt gets in the way of your savings goals and make sure you have a high-interest savings account.
4. Find ways to earn a little extra income — potentially by taking on a profitable side hustle.
5. Address your debts with the highest interest rates first — potentially by consolidating them in a personal loan at a lower interest rate.
Borrowing against the value of your home can be a great tool, but also a big risk
