Fed Rate Hike Impacts Credit Cards, Auto and Home Equity Loans

Interest rates are on the rise again as Fed chair "Jay" Powell says the economy continues to heat up.

Most people who want to find jobs are finding them, and unemployment and inflation are low,” Powell said Wednesday.

However, Americans are going to start feeling the pinch when it comes to credit cards, auto loans and home equity lines of credit.

Americans already owe roughl $1 trillion in credit card debt, the latest rate hike means we'll be paying an extra $2.2 billion in interest.

They can go to low-interest credit cards, or if they don't want to get a new credit card they can go to a non-profit credit counseling agency that will consolidate all of their credit card debts into a lower rate, typically six or seven percent,” says Jordan Goodman, "Americla's Money Answers Man."

If you're into saving money, Goodman says don't rely on your bank to help.

“There are things called secured real estate funds where you can get an eight percent yield over a one year timeframe, where they're lending money to commercial real estate projects all over the country,” he says.

The Fed meanwhile, hinted at possibly two more rate hikes this year.


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