(NC) There has been a lot of buzz about rising interest rates, which have increased since last summer after remaining quite low for seven years. If you're like many Canadians, you may be facing staggering levels of household debt.

If some of your credit products carry variable interest rates, you have cause for concern. For instance, home equity lines of credit (HELOC) typically offer relatively low, variable interest rates. According to the Financial Consumer Agency of Canada, HELOCs represent a significantly larger portion of household debt than credit cards. If you're already living paycheque to paycheque, even a small increase in your HELOC interest rate could make it tough to make your payments.

With flexible repayment terms and a credit limit that may increase automatically as you pay down your term mortgage, a HELOC can be part of an effective strategy to pay off other, higher-interest debt. But if you opt for this route, know that banks may approve you for a higher limit than you need, making it tempting to overspend. Consider negotiating a lower credit limit that does not increase as you pay down your mortgage.

Lower your risk of finding yourself in over your head and create a plan to pay down the principal amount borrowed on your HELOC over a fixed period. Aim to pay more than the minimum payment or interest every month. With a HELOC, there is usually no penalty to pay back as much as you can at any time.

If you think your spending habits are the cause of your existing debt, follow a budget and avoid using your home like an ATM.

Learn more about how to manage your HELOC wisely online at canada.ca/it-pays-to-know.