How The Fed's Interest Rate Hike Will Affect Your Wallet

The Federal Reserve is expected to begin raising interest rates this week. So how will it affect your wallet?

  • First off, any credit cards you own will probably see a bump in APR.
  • Buying a new car? A quarter-point bump in interest rates will translate into roughly $2-3 a month extra on your car payment.
  • Adjustable rate mortgages and home equity lines of credit will also be affected.
  • What won't be affected? Federal student loans have a fixed rate, and interest on savings accounts is not influenced directly by the Fed.
  • Do you follow current interest rates when deciding whether to make a big purchase?

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