Yesterday, the Federal Reserve announced that they would be increasing interest rates by a quarter of a point.
“How will higher interest rates affect me?” If you’re wondering about this, read on:
First off, auto loans, home equity lines on credit, and some other loans will not be impacted by the Fed’s decision.
The biggest change you will likely see is that the interest rate on your credit card will go up by the same amount of the increase. If you carry a balance from month to month, then this is obviously not a good thing.
What I would do in this situation is contact my credit card company and ask them if they could lower my rate. Many people are not aware that you can do this, but you most certainly can!
And remember: debt is the enemy of wealth.
You should pay down your balance as soon as possible, and avoid carrying a lot of credit card debt.
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