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OakvilleBeaverBusinessFinance minister sounds warning bell about consumer debtOn Monday Federal Financeered from 35 to 30 years.our overspending and he has notyou will lose a job. Monthly mort-Minister Jim Flaherty took actionThe upper limit that Canadiansbeen alone. gage payments are based on twoDollars against the increasingly highcan borrow was lowered from 90The Governor of the Bank ofincomes and not one.& Canadian household debt. He put aper cent to 85 per cent. And finally,Canada, Mark Carney, has issuedThose same monthly paymentstighter control on mortgage bor-government insurance on homeseveral warnings as well. His con-are based on the current low inter-Senserowing.equity lines of credit has ended.cern is that increased consumerest rates. What happens when yourBy Peter WatsonThree changes wereFlaherty is gently starting todebt levels put too much financialdream-come-true low mortgageannounced. The most significant isput the brakes on Canadians grow-risk on both Canadians and theinterest rate increases significantlydomino affect similar to what hap-the length of a mortgage term thating consumer debt. He has beencountry. at renewal time?pened in the United States withthe government will back was low-cautioning us for months aboutAt the center of this is you. YourWhat may seem to be a relative-mortgage foreclosures. spending actions influence somely small increase of 2 per cent on aThe banks want us to borrowmajor aspects of the Canadianmortgage renewal is a 50 per centOConnor MacLeod Hanna LLP welcomes Danny Choubecause that is how they makeeconomy.increase if you are currently payingmoney. The auto industry sells usConsumer spending accountsfour per cent. cars based on an affordable month-for about 70 per cent of theOne way or another, affordablely payment because their motiva-Canadian economy and economicpayments for many will no longertion is to sell cars.recoveries are generally led by con-be affordable and that could be theWith borrowing rates at historicsumer spending.start of your financial decline.lows it is extremely tempting toOn one hand, the country wantsConsider this weeks announce-just keep spending. The increase inindividuals to spend now to jumpment as a warning. Canadians have2010 Christmas spending Im sureOConnor MacLeod Hanna LLP, Haltons largest full service law firm, is pleased to welcome start the economy after the recenttoo much debt.Danny Chou to our team of specialized professionals.was in part due to prevailing lowworld recession. On the otherThe real question is do you haveDanny Chou practices in the area of Commercial Law. His law practice focuses on corporate interest rates.hand, there is concern about thetoo much debt? If your debt level iscommercial matters and involves a broad spectrum of transactions including sales, acquisitions, In what I guess is the not toomergers, reorganizations and financing. He drafts and reviews various commercial agreements risk associated with high con-high it would be an excellent ideadistant future, reality will set in.including manufacturing, distribution and supply, license, franchise, lease, partnership sumer and mortgage debt.to take our Finance Ministersand shareholders agreements. He advises on general corporate matters and assists in the More and more individuals willThe Bank of Canada warns thatwarning seriously. formation and organization of all types ofbusinesses including corporations, partnerships, have oppressive debt problems.sole proprietorships andjoint ventures. Dannys practice will service a wide range of sectors when interest rates start to rise,Flaherty has done his part inincluding manufacturing, distribution, retail, service, fi nancial and technology.Now that most households havemany individuals will default onsounding a warning alarm. Nowtwo income earners you have dou-Danny can be reacheddirectly attheir loans and this may have athe ball is your court. Tel: 905.842.8030 ext. 3320 Fax: 905.842.2460ble the chance that at least one ofEmail: chou@omh.caIf you have a Economic outlook for 2011 news tip or story idea,call the on menu at Chamber breakfastOakville Beaver at700 Kerr Street, Oakville, ON, L6K 3W5www.omh.ca905-845-3824.The Oakville Chamberabout the economic out-Outlook 2011 event will take placeof Commerce is invitinglook for the upcomingWednesday, Jan. 26 at the Holidaypeople to come out to ayear.Inn Oakville Centre, located atbreakfast event to learnThe RBC Economic590 Argus Rd.The look at consumer and mar-keting trends will feature speakersPaul Ferley, assistant chief econo-mist with the Royal Bank of Canadaand Ray Kong, senior vice presidentat Ipsos, a market research compa-ny.The event runs 8-9:30 a.m. withregistration opening at 7:30 a.m.Tickets are $30 for members and$40 for non-members. A table ofeight can be reserved for the priceJanuary 29 & 30, 2011of seven.There will be a buffet style break-* Valid only on new orders placed after Jan. 13, 2011 for a limited time only. Discount applies to cabinetry on full kitchen purchases.Burlington Convention Centre Not valid with any other promotions. Only at participating locations.fast and networking opportunities.1120 Burloak Drive & QEWFor more information and toregister visit the websiteShow Hours:www.oakvillechamber.com.11:00 AM to 5:00 PMSpeak up! You can commenton any story in todays OakvilleBeaver at oakvillebeaver.com.www.oakvillebeaver.com OAKVILLE BEAVERThursday, January 20, 2011 24