In a report this morning, a warning that most Canadian carrying debt already know if they have done any homework at all about what would happen to their monthly payments if we got as little as a 1/4 of one per cent hike in interest rates.
In fact, the study by TransUnion states a bump up by just that 1/4 would cause payment shock to as many as 700,000 borrowers.
And if that raise was as much as one per cent, even over many months, as many as one million Canadians could face financial difficulty.
The record low rates over the past several years have allowed many more Canadians the ability to borrow both for mortgages and consumer loans.
The 1/4 per cent hike would see a $50 increase in monthly payments for 718,000 consumers and an additional 253,000 consumers might be in financial difficulty at the one per cent level.
Now it is not expected that the Bank of Canada will start to raise rates until late 2017, but that is just the current forecast, and many Canadian consumers have given little thought to what a rate hike might do to their monthly budget.
According to TransUnion some could just cut out a meal or two out to counter a rate hike, but others, warns TransUnion, might have to forsake a tank of gas a month or cut into their already stretched grocery bills.