HomeMy WebLinkAboutHuron Expositor, 2016-09-14, Page 5Wednesday, September 14, 2016 • Huron Expositor 5
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Pictured from left to right are: R.W. Bro., Barry Hutton, Secretary, Britannia Lodge No. 170 V.W. Bro. Alfred Ross, current Grand Steward W. Bro. Richard
Marier, the current Master of Britannia Lodge No. 170 R.W. Bro. Terry Ridgway, District Deputy Grand Master, South Huron District.
Debts will sink many if interest rates rise
Canadians have enjoyed
cheap credit for so long it
will be an immense shock
when interest rates begin to rise,
although that's not likely to hap-
pen anytime soon.
On Wednesday, the Bank of
Canada announced its key inter-
est rate of 0.5 per cent would
remain unchanged and would
continue as it has since mid -
2015. The key interest rate has
remained at one per cent or less
since 2009, an extraordinary
seven-year stretch that has effec-
tively punished savers and
encouraged the accumulation of
private and public debt.
Interest rates have been sup-
pressed to encourage economic
growth, but there has been col-
lateral damage. Today, a great
number of Canadians are mired
in debt while finding it difficult
to save.
Indeed, a survey released
Wednesday, the same day as the
Bank of Canada announcement,
says 39 per cent of its respond-
ents (more than 5,600 employed
Canadians who were polled ear-
lier this summer) find them-
selves overwhelmed by their
debt. Most of them cite mort-
gages, followed by credit card
debt, car loans and debt from a
line of credit. An incredible 11
per cent believe they'll never be
debt -free.
Of course, the survey, con-
ducted on behalf of the Cana-
dian Payroll Association, isn't
entirely about debt. It's also
about income, or rather a lack of
income among respondents.
Forty-eight per cent said they
live paycheque to paycheque,
and about 25 per cent said they
wouldn't be able to find $2,000
to cover an emergency situation.
About half of those polled
said they are able to save five
per cent or less of their
income. But with increased
debt (22 per cent admit to
finding it difficult to pay off
their credit card balance) it
remains a struggle.
Any incentive to save
money within such an eco-
nomic landscape is difficult to
pinpoint, although there are
Canadians who save and
some who save prodigiously.
One of the legacies of the Ste-
phen Harper government is
the Tax Free Savings Account,
a financial device that
encourages the saving of
money with the promise that
it won't be subjected to taxa-
tion once placed into a TFSA.
But again, the bank rates on a
TFSA are tiny; meaningful
growth comes only with the
careful investment of those
same funds.
The situation is a far cry from
the early 1980s when borrowing
charges were approaching 20
per cent.
We'll never see a return to
those rates, as they were the
response to an era of historic
inflation. But at some point,
interest rates will be nudged
upward, and the impact on
those who now say they're over-
whelmed by their debt will likely
be catastrophic.
Peter Epp
A memorable
night at the
Britannia
Masonic
Lodge No. 170
On September 10, a reception was
held to praise V.W. Bro. Alfred Ross on
his appointment as Grand Steward for
Grand Lodge A.F. & A.M. of Canada, in
the Province of Ontario.
The special night was held at Britan-
nia Masonic Lodge No. 170 in Seaforth.
Many family and friends were in
attendance to offer their
congratulations.
Help For Today.
Hope For Tomorrow.
Alzheimer Society
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