Watching Your Wallet: Interest rate hike good for savers, hard on borrowers
Expert: Now is the best time to pay down credit cards
InvestigateTV - In an effort to fight inflation, The Federal Reserve recently raised interest rates by half a percentage point, the biggest hike in two decades.
The rate hikes from the Fed raises interest rates for borrowers. This means applying for a new loan or paying an adjustable-rate loan or credit card will likely cost more.
Cherry Dale, a financial coach with the Virginia Credit Union, said your minimum credit card payments could rise.
“It might not look like a lot initially. It might be $10, $20 depending on how much you have on that credit card, but it does add up over time,” Dale said.
She advises, if you have multiple credit card debt, look at which credit card has the highest interest rate and attack that first and put any extra payments on that card.
There is one benefit of the fed raising rates; you could earn more in your savings accounts.
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