It's a situation experts say could push some to a breaking point as they rely on high interest rate loans and credit cards to pay for the soaring cost of everyday goods
Canadians are increasingly vulnerable to "payment shock" as higher household debt levels collide with oversized interest rate hikes.
"We're already starting to see signs of that now," Cowan said. "Some people are already having trouble servicing debt and it could get worse." For example, a $100,000 home equity line of credit with a roughly 3.5 per cent floating interest rate at the beginning of the year would have cost roughly $250 a month in debt servicing costs, Shelestowsky said. That amount has now roughly doubled.Credit reporting agencies Equifax Canada and TransUnion Canada both released reports this week highlighting the recent growth in household debt.
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