A report from TD Economics suggests that one in 10 Canadian households could find themselves in serious financial hot water if interest rates are hiked, according to a Canadian Press release.

As easy borrowing has become increasingly widespread, chief economic Craig Alexander notes that personal debt levels have risen greatly, and he expects debt levels to increase faster than income, which could cause serious problems for those carrying a high level of debt already, as the interest rate inevitably rises.

According to Alexander, Canadians with debt need to work to reduce debt levels now, while the interest rate is low. Currently, the Bank of Canada is holding its key lending rate at one per cent.

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