How would an interest rate increase affect your household finances? - Macleans.ca
 

How would an interest rate increase affect your household finances?


 

 

How would an interest rate increase affect your household finances?

  1. I do not have any debt and I do have some savings. So, I'm in the minority and would like to see a slight rise in interest rates.

    • So would I like an interest rate increase. I am depending on the interest to live.

    • Me too Diane. What I wouldn't do for a 5% interest savings account! It's hard to even imagine that they ever existed.

  2. If you really want to know how the general public feels about interest rates, you need to include a question for people who do not have any bad debt and are saving for the future as this demographic would welcome higher interest rates to boost their savints.

    • Brilliant Carolyn! There IS just a response – the last one. When will you Ontario Lieberals learn to read?

      • The Western redneck does have a point, but can't resist a stupid insult.

        • Whoever Wats is : IS A Redneck to make such a statement. Head shake time

      • She said that an interest rate increase would benefit her household, which is ≠ to lacking worry about interest rates.

      • Sorry, but the last response does not capture it for many of us; it's not that we;re not worried, but that we WANT an interest rate increase.

    • In many if not most instances if you increase interest rates you increase prices. As a result by increasing these interest rates you also increase your taxes to both the Feds and the Province and especially to one of Mr. McGuinty's favourite taxes the HST. Therefore the higher interest rates 'to boost your savings' will have 50%-75% sucked up by government tax activity.

      • And that money will go to beer and popcorn for politicians! Or maybe betters roads, schools and hospitals…

    • Agreed, too many of these polls are very one-sided

  3. I'm retired, on a fixed income (that COLA'd) which is about 10% less than what I was making while working (even taking in the fact that my lower income drops me to a lower tax bracket). I know that this isn't really relevant to the question but it sets up the foundation for my financial perspective.

    So, with that in place, will this interest rate increase affect my family finances? Of course it will. Good grief, having the same income, even when I was working, and seeing the cost of living go up for whatever reason, including interest rate increases, I KNOW that my spending / saving power will decrease.

    Nevertheless, I answered this poll checking off the fourth choice. Am I worried about this issue? No. What difference will worry make? It certainly won't make my income rise.

    So, what the heck, roll with changes if those changes are ones over which you have no control.

    God bless, keep and guide you and your loved ones during and beyond this season celebrating His Son's birth.

  4. Interest rates on GICs are earning a client 1.8% per annum …,this is the income generator for a lot
    of retired people who do not have a company /institutional pension plan and who do not want to risk losing money with other income generating vehicles ..after tax this 1.8% becomes insignificant …YES YES increase the interest rates so that we can have a little more income to pay for the Ontario Liberals HST and Ontario Hydro Smart meter ripoffs .
    If you have a large debt load hanging over your head then perhaps living a lifestyle like there was no tomorrow is a bad choice …like gambling ,acquiring debt becomes addictive ..time to face reality ….interest rates were once at 22% in the 1980s ..could you afford paying down debt at that interest rate? .well look what your credit card company is charging you right NOW !!

  5. Just one question? Does the government not run on borrowed money? When interest rates go up so does the cost of running the government. Means more tax increases to me.

  6. Interest rates are just like the laws of physics. For every action their is an equal and opposite reaction.
    The only people that like high interest rates are the rich that do nothing except have their money make them even more money. For anyone starting out in the world of borrowing to buy a house, car etc it just makes life that much harder.

  7. The Bank holding interest rates below the rate of inflation has taken a torch to my family's savings and income. We (were) young, we saved for the future and now that money is evaporating and I'm not seeing a raise. It's been two years of this crap with no end in sight. We can't get anywhere and it's getting worse. But I'm glad everyone deeply in debt is partying on! Here's to a better 2011. One way or another, we're not going to be in this position in a year.

  8. Control your spending should not be a problem merry christmas and cred cards.