What to do about your debt after the interest rate hike + MORE Jan 18th

TORONTO — Canada’s biggest banks will hike their prime rate by a quarter of a percentage point on Thursday, putting financial pressure on homeowners with variable rate mortgages.
The Royal Bank of Canada (TSX:RY) was first to announce its prime rate will rise to 3.45 per cent, shortly after the Bank of Canada raised its key short-term rate by a quarter-point to 1.25 per cent.
RBC was followed by Bank of Montreal (TSX:BMO), CIBC (TSX:CM), Scotiabank (TSX:BNS), TD Canada Trust (TSX:TD), National Bank (TSX:NA) and Desjardins Group — a financial co-operative with offices throughout Quebec and parts of Ontario.
READ: Why banks are slow to lower lending rates, but quick to hike them
Banks tend to raise their own prime rates after the central bank raises its key lending rate, which affects wholesale borrowing costs for the major lenders and the retail borrowing rates they charge consumers.
The prime rate is used as a benchmark for variable-rate mortgages and some lines of credit.
Consumers with a fixed-rate mortgage will be unaffected by the Bank of Canada’s move on Wednesday until it’s time for the borrower to renew the mortgage…

Nice to see more flight bonuses coming out of Air Canada and Aeroplan – its been a bit dry in that department for a few months now! This offer awards double miles in all fare classes from the lowest Tango fares to the highest flexible business class fares on select routes across Air Canada’s network. There are quite a few routes included so be sure to check out the the registration page to see if any work for you. Even if you don’t have plans to fly any of the participating routes it’s best to register no matter what to make sure you are covered if your plans do changes. The double miles will be awarded on flights that are booked by February 15 (and only after January 15 – any flights booked prior won’t count) for travel until June 30.Offer detailsDouble Aeroplan Miles when you fly on select Air Canada and Air Canada Rouge routes between Canada and the U.S., Europe, Africa, Asia, Australia and Sun destinations. Register Online (Registration is required) Register and book by Feb 15 for travel until Jun 30, 18Here are all the routes you can earn the bonus miles on:

As the mercury rises, research shows we tend to spend a bit more carelessly

TORONTO — Many consumers will soon find their debt loads heavier now that Canada’s central bank and the country’s biggest commercial lenders have raised their benchmark rates by one-quarter percentage point.
The country’s biggest banks raised their prime rates after the Bank of Canad hiked its overnight lending rate Wednesday by a quarter of a percentage point to 1.25 per cent.
READ: Your mortgage is about to get more expensive
It’s a challenge for Canadians still struggling to cope with the record amounts of consumer debt they amassed after the 2008 financial crisis because lenders use their prime rate as a benchmark for setting some other short-term rates including variable-rate mortgages and lines of credit. A hike is good news for savers as the prime rate also affects interest rates for savings accounts.
If you’re contemplating how to best take advantage of the increased rates or avoid falling into further debt, personal finance expert and Ryerson University business professor Laleh Samarbakhsh shared her advice…

You’ve saved up hundreds of thousands of credit card reward points. What are your options?