Interest rate increases putting pressure on Sask. residents

People struggling with debt in Saskatoon are growing concerned over the continually rising interest rates across the country.

Mary Castillo, a financial educator with the non-profit Credit Counselling Society (CCS) in Saskatoon, said she definitely has seen an impact on clients due to rising interest rates. On Wednesday, the Bank of Canada increased its key interest rate to 1.5 per cent.

The recent hikes have many people concerned and are raising lots of questions, Castillo said, noting an increase in the number of calls the CCS has been receiving as a result.
“The concern is that it’s harder and harder to make ends meet,” Castillo explained.

She said rising interest rates play a role in everyone’s life, and it’s certainly relevant for the people she works with on a regular basis.

Rising prices for gas and food, as well as a third interest rate hike in the past three months, mean people already struggling to make ends meet are feeling more pressure.

Castillo said the additional stress for clients who are already under pressure makes it important to consider outside-the-box ways to cover expenses. That might include lifestyle changes like moving to a more affordable housing option, or picking up a side job.

“Everybody’s situation is quite unique,” Castillo said, noting the CCS deals with clients from all walks of life.

While she hasn’t seen clients default on their loans, Castillo expected the CCS might see an uptick in struggling clients and said she wouldn’t be surprised to see more loan defaults generally.