The Financial Consumer Agency of Canada is advising consumers to take steps to manage this week's rise in interest rates.

On Wednesday the Bank of Canada raised the benchmark interest rate to 0.75 per cent from 0.5, the first jump in seven years.

The Agency says an interest rate increase means consumers have to make higher monthly payments on credit and loans such as variable interest rate mortgages, personal loans and lines of credit.

Interest rate increases could also impact loans that are coming up for renewal such as fixed rate mortgages. For some consumers, higher debt payments means having less money to put toward other expenses.

It says a rate increase is a good time for consumers to review their finances.

FCAC recommends consumers review their budget to see how higher interest rates will impact their payments and take steps to manage an increase, such as:
    paying down larger debts, especially those with the highest interest rates
    making prepayments on their mortgage or accelerating mortgage payments
    cutting expenses and putting more money toward paying down debt
    avoiding taking on more debt
    setting aside savings to deal with unplanned expenses
    consolidating debts with high interest rates into a loan with a lower interest rate