Crystal Ball gazing: how 2013 could impact your financial future.

• Author: Bissonette, Laurie
• Position: BUSINESS SENSE - Column

Last year, Canadians were treated to a raucous U.S. election (which I would admit, 1 find entertaining) and a Washington fiscal melodrama along with ongoing woes in Europe and Asia, which have put a chokehold on global economic growth. As the new year begins, taxpayers will be bombarded with advice on how best to manage their finances. Crystal balls aside, here's what the experts think is heading our way.

Even though Canadian economists aren't predicting a recession at home, the general. consensus is that we're in for a period of slow growth across the board due to concerns about political gridlock in the U.S. and a softening Chinese economy, not to mention the Greek tragedy that is playing out in Europe which threatens the stability of the Euro and along with it the European Community Any one of these factors could adversely impact Canada's resource and manufacturing sectors-our Northern Ontario sectors. The main takeaway is that you should be prepared to be more involved in your fmances if you want to weather the storm.

Reducing Debt

If it's one thing that all the pundits agree on it is getting your debt under control. Currently, a record amount of personal and household debt is being carried by middleclass Canadians. Interest rates, which have been at historic lows, are not expected to remain so for much longer. If you have to borrow for that special project, a line of credit is probably your best option, particularly if it is at a low interest rate.

Housing Markets

The outlook on the housing markets is divided. Concerned about a potential bubble, last year the government took measures to dampen speculation in the housing market. Still, demand remains strong which has some economists saying that we are still in the middle of a gravity defying boom. Even with signs of life returning in the U.S. housing markets, most economists expect that growth will begin...