What the Federal Reserve Interest Rate Hike Means for You

The Federal Reserve raised the national interest rate Wednesday for the second rate hike in just a few months.

This means you'll pay more on credit cards balances, mortgages and car payments.

But how much more you pay largely depends on your financial situation. There have been reports of people rushing out to buy homes before the rate hike kicks in. But for a $400,000 house, your payment would only go up about $60 a month. Whether that $60 matters that much depends on your situation.

The biggest area where you'll see an immediate impact is likely credit cards. If you're in credit card debt and already have high interest rates, your minimum payment is going up and you likely won't have a lot of options to get another credit card with a lower interest rate.

Dallas-based Transformance helps low- to middle-income families come up with plans to balance debt, and they tell NBC 5 Responds they are bracing for more calls after this interest rate hike.

Another area to watch out for is adjustable rate mortgages. Those rates go up about once a year, and they can have the last two rate hikes factored in. That may look like a bigger rate hike.

Bottom line, if you're already in financial trouble, this latest move by the Federal Reserve is going to sting. If your finances are under control you'll likely just pay a little more.

Contact Us