Sep 26, 2023

consumer debt and loans

The end of cheaper debt - our CEO Karl Jacob weighs in on higher interest rates with Fox Business.

The Federal Reserve has decided to raise and hold onto higher interest rates. This will make it more expensive for consumers and businesses to borrow money. Savers will benefit from higher interest rates, but borrowers will face steeper debt payments.

This is how higher interest rates could affect you:

  • If you have a credit card, your monthly payments may go up.

  • If you are planning to buy a house, you may have to pay a higher interest rate on your mortgage.

  • If you are saving money for retirement, you may earn a higher interest rate on your savings account.

It is important to note that the Federal Reserve is trying to control inflation. When inflation is too high, it can make it difficult for people to afford basic necessities like food and housing. By raising interest rates, the Federal Reserve is hoping to slow down the economy and bring inflation under control.

Consumers need to understand that interest rates are unlikely to go down soon. This will require a new strategy for managing debt. LoanSnap can help with consumer friendly, lower interest loans.