Rate increase should prompt Canadians to reduce their debts

Re: Bank of Canada raises interest rate for first time in 7 years to 0.75%, July 12 
Last Wednesday, the Bank of Canada announced its decision to increase its benchmark interest rate, from .5 to .75 per cent. With that, it now costs more to borrow money in Canada.
Canadians with variable rate mortgages and lines of credit will be impacted right away. As for the rest of us, we will feel it when we apply for credit or renew an existing credit obligation. Mortgages. Personal loans. Car loans.