MY BLOG WITH THE ISSUE OF DEBT AND MONEY...
So, the Feds raised interest rates again, what does that mean to US, the consumers? As I listened to online videos about pros and cons, I became a little bitter about the information being presented.
First of all, if you have a variable interest rate (one that changes with the Fed's rate), a 2nd mortgage or line of credit, the interest rate will increase, which will increase your monthly payment. That will eat into a set budget or a person living paycheck to paycheck--which is by statistics 78% of people.
If you have a credit card and you carry a balance every month, the interest rate will increase which will cost you lots more money than before. And, if you do not increase your monthly payment, the interest will begin to stack up and you will then be paying interest on the interest accrued, not to mention the stuff you bought to start the whole problem. Whatever you charged on that card just got more expensive. So my thought is, WHAT IF YOU JUST PAID FOR IT WITH CASH TO BEGIN WITH? Your "perks" just got smaller too.
On to the "pros"-the interest earned on your savings account will increase! SERIOUSLY?! How much has your bank's interest rate on savings accounts increased?? We have already had increases in the Fed's interest rate-what happened to that theory? Truth is, the response to you on savings account interest is VERY SLOW.
IT'S NOT A "PRO" FOR ME YET, I'LL WAIT, WITH MY MONEY ELSEWHERE.
Be smart about your money, read the fine print of savings and watch your interest rates! Ask your bank about your savings rate and then ask why they have not increased the rate and why they need $39.00 every time you have an overdraft or $2.00 if you use another ATM. GET MAD AND ASK (I ALWAYS STATE THE OBVIOUS TO THEM, THEY ARE LIVING OFF FEES JUST LIKE AIRLINES).
Don't give your hard earned money away to the banks and credit cards. Keep it for yourself.
You have a future, right? You want to retire, right? Your kids need college funds, right? Let's give ourselves a raise and a future, not the lovely marble floors in the bank. Becoming debt free will change your life.
AT FINANCIAL PACEMAKER COACHING WE WANT TO HELP. WE CAN. WE WILL PACE YOU ALONG AND THEN YOU WILL RUN!