Short term loans to become more expensive


END UP PAYING MORE. WYFF NEWS 4’S TIM WALLER, EXPLAINS WHO THIS WILL AFFECT. — WHO THIS WILL EFFECT. REPORTER: AS FAR AS LONG-TERM INTEREST RATES, LIKE MORTGAGE LOANS, OFFICIALS SAY THERE’S LITTLE TO WORRY ABOUT. BUT IT’S THOSE SHORT-TERM RATES, THINGS LIKE CAR LOANS, HOME EQUITY LINES, EVEN CREDIT CARDS, THAT COULD BECOME MORE EXPENSIVE. DOING EXACTLY WHAT MANY HAD EXPECTED, THE FEDERAL RESERVE RAISED SHORT-TERM INTEREST RATES BY A QUARTER OF A POINT FROM 0.75% TO 1 NOT A HUGE INCREASE, BUT ONE THAT WILL BE FELT BY THE MILLIONS OF AMERICANS WHO PAY INTEREST ON THEIR CREDIT CARDS.>>IF PEOPLE ARE HOLDING A LOT OF CREDIT CARD DEBT, THEY’RE USUALLY ALSO MAKING THE MINIMUM PAYMENT, SO THAT DEFINITELY WILL INCREASE THE TOTAL INTEREST THEY’LL PAY OVER THE LIFE OF THE LOAN. THAT COULD STRETCH IT FOR SEVERAL MORE YEARS. IN FACT, ONE STUDY FOUND, TODAY’S INCREASE IN RATES WILL COST CREDIT CARDHOLDERS AN ADDITIONAL $1.6 BILLION IN INTEREST THIS YEAR. CAR LOANS AND OTHER PERSONAL LOANS COULD ALSO COST MO , INCLUDING A HOME EQUITY LINES OF CREDIT THAT HAVE VARIABLE RATES.>>IT’S SOMETHING THAT HOMEOWNERS MIGHT WANT TO BE LOOKING AT AS A TARGET TO GET PAID DOWN SO THAT THEY DON’T FIND THEMSELVES IN FOUR, FIVE YEARS WITH A MUCH BIGGER PAYMENT THAN THEY HAD TO START WITH. REPORTER: WHILE FIXED RATE MORTGAGES ON HOMES WILL BE UNAFFECTED, PEOPLE WITH ADJUSTABLE RATE MORTGAGES COULD SEE THEIR MONTHLY PAYMENTS INCREASE. STILL, EVEN WITH THE INCREASE, SHORT-TERM INTEREST RATES ARE AT A HISTORIC LOW, AND MANY SAY THIS LATEST RATE HIKE WAS NEEDED>>AS THEY WATCH THE INFLATION NUMBERS, THEY WANT TO MAKE SURE THEY KEEP INFLATION IN CHECK. REPORTER: BUT WITH TWO MORE RATE HIKES EXPECTED THIS YEAR, HE SAYS NOW IS THE TIME TO TRY TO PAY DOWN DEBT. TIM WALLER, WYFF NEWS 4,

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