Stress Test Your Own Debt

Worried about Canadians' sensitivity to a rise in interest rates?  A great article by the popular Globe and Mail columnist Rob Carrick reviews how you can test your own financial vulnerability, together with some solutions if you're getting into the trouble zone.  One solution Rob missed: if you have equity in your home, and have unsecured debt with high monthly payments, you may be able to significantly ease your cash crunch by consolidating the debt into a mortgage or home equity line of credit.   Then, you can focus on paying down the mortgage with any extra cash.  As Rob Carrick says, "Less debt gives you more immunity to higher interest rates."