The Fed has been raising interest rates and is threatening to do it again. That’s great news for people with money in the bond market but bad news for stock investors and one other group that has benefited from low interest rates: folks with credit card balances. Interest rates on those accounts are likely to go up in the months ahead. On this MoneyWise Live, financial planner and teacher Rob West has 4 rules for avoiding high credit card rates.
- If credit card interest rates are usually pretty high, how can we say that folks with balances have benefited from the Fed’s low interest policies?
- Interest rates are rising after years of record or near record lows. It had to happen someday and it’s the price for having a booming economy, but this makes it especially important to use credit cards wisely?
- Finally, what if someone has already run up a credit card balance and they’re struggling to make payments?
Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
- If you're renting in New York and will only stay briefly while your husband attends university, should you feel like you're wasting money on rent?
- If you currently have no mortgage, a HELOC with a variable rate currently at 6% for $10,000 and the bank is offering a lower fixed rate refinance option, should you do it?
- If you're in a mixed culture larger family that expects financial customs Christians aren't used to, what should you do?
- If you have rental properties that are consuming more than they're making, should you sell them?
- If you bought a home a little than a year ago and have since had a baby and are experiencing some financial tightness, should you sell the home?
- If you've had credit card debt for years and have finally paid them off, should you keep the cards to keep your credit score stable?
- If you have an adult son that has moved back in, is there a pay-based way to calculate their rental rate?
- If you're approaching 60, have savings and retirement funds put away and still have a whole-life insurance policy, should you keep the policy?
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