Are Interest Rates Up, Up and Away?
Interest rates have been at their lowest levels in over 40 years. U.S. consumers have been able to purchase previously unaffordable homes, cars and other toys. Many have used cheap home equity loans to remodel, take vacations and pay off credit cards. Students have taken advantage of the rock-bottom student loan rates.
But, interest rates look to be headed up. Recently, Alan Greenspan and the Federal Reserve escalated the Fed funds rate from 1% to 1.25%. So, what does that mean to you and me?
The increase in rates is important if you have variable (not fixed) loans. For example, if you have adjustable rate mortgage or home equity lines of credit, the interest rates will probably go up (as well as the payments) in the next few months. Each time the Fed increases the Fed funds rate, it will roll down onto your adjustable rate loans and your payments will go up. The speed of increase and the amount of the increase will depend on what index your loan is based on - check with your lending institution for more information on that.
If you have high credit card debt, the situation may be even more bleak because credit card rates remained high while other rates have been incredibly low. The Fed increases are a good excuse for your credit card company to hike your rates even higher.
So, what can you do if you're looking at rates and payments going up, up and away?
* Your payment increases may be fairly gradual. Depending on the economy, the Fed will continue to increase rates although they have signaled that the increases are likely to be very gradual. If the economic or political situation changes, they always have the ability to lower rates again. The Fed's rate-setting committee is scheduled to meet again Sept. 21, Nov. 10 and Dec. 14, and they may skip a rate increase at one of those meetings if inflation is subdued.
* Check with your student loan lenders to see about consolidating and locking in rates. Good news: interest rates on savings are also likely to increase! So, if you have CD's coming due, check with different financial institutions before automatically rolling them over. If you have money stashed in savings accounts, the rates are probably starting to creep up. I highly recommend ING savings for the highest rates around (www.ingdirect.com). They also give great service, have no fees or hidden costs and are FDIC insured. You can also name your accounts at ING to make it easy to identify what you're saving for.
* If you've been thinking about re-financing, there are still some good deals out there and there's no sense in procrastinating any longer. Contact me for some excellent resources for re-financing.
* What if a new house isn't in your plans for a couple of years? When rates go up, it often cools off real estate prices and balances out the higher rates. Continue to save money in the highest interest short-term accounts you can find (no stocks or other long-term investments). Rates will probably not take huge leaps in the short term.
* If you have an adjustable rate (home or home equity or car loans), you will see higher payments so call your lender to find out what the new payment is "likely" to be. They'll probably put all kinds of disclaimers out about not really knowing, but try to get a worst case scenario and then start pretending you really do have that new payment. Put the extra into a special savings account so you'll have a "slush" fund to cover if you run short one month. At the same time you are building up a cushion for the future, you'll have a good idea of whether or not you can handle the new payment. If not, now's the time to start looking at other alternatives like cutting back, increasing income or even refinancing.
Remember, if you refinance your existing term to a new 30 year term, you'll have lower payments, but you'll pay a lot more for your house because of the additional interest.
* Call your credit card companies and see if they are willing to lower your rates (not all are). Look for good, permanent credit card interest rates that you can transfer higher rate balances to. For example, if most of your cards are 18% or higher, find a good 12% card or lower and transfer as much as you can to that. Playing the 0% credit card shuffle is a dangerous game and can hurt your credit score.
* Reduce credit card debt now! Stop using your cards and pay more than the minimums. If you pay off one card, take that payment and put it on another card. If you receive a pay increase, put it on the cards. The sooner the cards are paid off, the more flexibility you'll have!
All in all, we're quite likely to enjoy reasonable interest rates for some time to come. However, make preparations now and you'll be able to handle whatever comes your way.
If you need help, I'm the one to call -- 541-387-2995!
Cindy S. Morus (www.phelps-creek.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer and Get Clients NOW!? licensee. Contact her at 541-387-2995 or firstname.lastname@example.org She is also the publisher and editor of "Financial Fitness", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past.
Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (email@example.com) so we can take a look. Thanks.
Looming end to student loan payment moratorium raises fears among defaulted borrowers - The Washington Post
Looming end to student loan payment moratorium raises fears among defaulted borrowers The Washington Post
Fitch Affirms Access to Loans for Learning Student Loan Corp. - 1998 Master Trust IV (CA) - Fitch Ratings
Fitch Affirms Access to Loans for Learning Student Loan Corp. - 1998 Master Trust IV (CA) Fitch Ratings
As Biden Admin Eyes Canceling Student Loans, Taxpayers Could Be On The Hook For $435 Billion From Federal Student Loan Program - Forbes
As Biden Admin Eyes Canceling Student Loans, Taxpayers Could Be On The Hook For $435 Billion From Federal Student Loan Program Forbes
New IRS Restrictions on PPP Loans Bloomberg Tax
Biden has big plans for student debt relief—here are 3 possibilities to look for in 2021 and beyond - CNBC
Biden has big plans for student debt relief—here are 3 possibilities to look for in 2021 and beyond CNBC
A Trump donor’s company got a 3 percent federal pandemic loan. It sells title loans at a 350 percent annual rate. - The Washington Post
A Trump donor’s company got a 3 percent federal pandemic loan. It sells title loans at a 350 percent annual rate. The Washington Post
5 student loan refinancing mistakes to avoid Fox Business
How The New Loan Limits Affect Mortgage Rates Mortgage News Daily
In Victory For Borrowers, DeVos Agrees To Stop Issuing Mass Denials Of Loan Forgiveness Applications - Forbes
In Victory For Borrowers, DeVos Agrees To Stop Issuing Mass Denials Of Loan Forgiveness Applications Forbes
Mortgage Loans In Forbearance Tick Up Slightly National Mortgage Professional Magazine
Grand Forks Growth Fund modifies leases, grants loans in busy session Grand Forks Herald
Ed Dept. Analysis Projects $435B in Student Loan Losses Inside Higher Ed
SmartBiz Loans® Names Bricks4Kidz Atlanta 2020 SmallBiz of the Year to Celebrate Small Business Saturday and Business Resilience During 2020 - Business Wire
SmartBiz Loans® Names Bricks4Kidz Atlanta 2020 SmallBiz of the Year to Celebrate Small Business Saturday and Business Resilience During 2020 Business Wire
Colleges Ask DeVos to Extend Break From Repaying Student Loans Inside Higher Ed
Premier Diversified Holdings Inc. Update on Certain Loans, MyCare MedTech Inc. and Corporate Update - GlobeNewswire
Premier Diversified Holdings Inc. Update on Certain Loans, MyCare MedTech Inc. and Corporate Update GlobeNewswire
Small Business Administration loans come to Northwest Minnesota Grand Forks Herald
Alliant Credit Union closes $39M worth of multifamily loans REjournals.com
PPP Borrowers Are Asked to Justify Need for Loans Over $2 Million The Wall Street Journal
Student Loan Losses Seen Costing U.S. More Than $400 Billion The Wall Street Journal
AI Can Make Bank Loans More Fair Harvard Business Review
Washington state to offer $135 million in grants, loans for business hurt by COVID-19 restrictions - OPB News
Washington state to offer $135 million in grants, loans for business hurt by COVID-19 restrictions OPB News
College Town: Clark loans rare copy of 18th century writer's work to Houston museum - Worcester Telegram
College Town: Clark loans rare copy of 18th century writer's work to Houston museum Worcester Telegram
GoTo Loans partners with the AIR MILES® Reward Program, Canada's most recognized loyalty program, to offer AIR MILES Reward Miles to all GoTo Loans customers - PR Web
GoTo Loans partners with the AIR MILES® Reward Program, Canada's most recognized loyalty program, to offer AIR MILES Reward Miles to all GoTo Loans customers PR Web
FEMA grants, disaster loan applications due Dec. 1 for Escambia and Santa Rosa residents - Pensacola News Journal
FEMA grants, disaster loan applications due Dec. 1 for Escambia and Santa Rosa residents Pensacola News Journal
Grinnell eliminates loans, citing coronavirus Inside Higher Ed
Letters to the Editor: Keep better track of future PPP loans Charleston Post Courier
SBA Economic Injury Disaster Loans Available in Mississippi Following Agriculture Declaration for Spring 2020 Excessive Rain and Flooding - Northeast Mississippi Daily Journal
SBA Economic Injury Disaster Loans Available in Mississippi Following Agriculture Declaration for Spring 2020 Excessive Rain and Flooding Northeast Mississippi Daily Journal
Fitch US Leveraged Loan Default Insight (Default Activity Slows in November; Loans of Concern Total Declines) - Fitch Ratings
Fitch US Leveraged Loan Default Insight (Default Activity Slows in November; Loans of Concern Total Declines) Fitch Ratings
Should You Choose a Point-of-Sale Loan to Gift Now and Pay Later? Martinsville Bulletin
Exploits and Flash Loans Are Just the Beginning, Defi Economy Is Less Private Than People Think | Technology - Bitcoin News
Exploits and Flash Loans Are Just the Beginning, Defi Economy Is Less Private Than People Think | Technology Bitcoin News
What Biden’s Election Could Mean for Student Loans The New York Times
EPA Invites Rhode Island to Apply for $39+ Million Water Infrastructure Loan | US EPA - U.S. EPA.gov
Former Treasury Secretary Larry Summers is 'skeptical' about student loan forgiveness - Yahoo Finance
South Tampa Bay Project Lands $52M Loan Multi-Housing News
Detroit Builder Lands $79M Loan for Luxury Project Multi-Housing News
Letters signed by AICPA raise concerns about PPP Loan Necessity Questionnaires - Journal of Accountancy
Letters signed by AICPA raise concerns about PPP Loan Necessity Questionnaires Journal of Accountancy
Long-delayed Couture high-rise receives HUD loan guarantee for $103.5 million, setting the stage for construction. - Milwaukee Journal Sentinel
Long-delayed Couture high-rise receives HUD loan guarantee for $103.5 million, setting the stage for construction. Milwaukee Journal Sentinel
Countybank opens new commercial loan office in Simpsonville Upstate Business Journal
Blanket student-loan forgiveness is lousy public policy Walla Walla Union-Bulletin
Dallas Restaurant Owner Russell Birk Says He’s Eligible For PPP Loan To Be Forgiven - CBS Dallas / Fort Worth
Dallas Restaurant Owner Russell Birk Says He’s Eligible For PPP Loan To Be Forgiven CBS Dallas / Fort Worth
For Millions Deep in Student Loan Debt, Bankruptcy Is No Easy Fix The New York Times
Mnuchin rejects renewal of some Fed emergency loan programs The Associated Press
Agencies announce threshold for smaller loan exemption | News Dodd Frank Update
Fitch Affirms College Loan Corp. 2005-2 Fitch Ratings
Judge Orders SBA to Release Names of All PPP Borrowers, Precise Loan Amounts - The Wall Street Journal
Judge Orders SBA to Release Names of All PPP Borrowers, Precise Loan Amounts The Wall Street Journal
Longview small businesses impacted by COVID-19 eligible for new loan program - Longview News-Journal
Longview small businesses impacted by COVID-19 eligible for new loan program Longview News-Journal
Hart Mountain Store owner receives loan, reports best year Lake County Examiner
Federal Reserve’s Emergency Loan Programs at Center of Political Fight The New York Times
Birmingham bank enters Anniston market with new loan production office - Birmingham Business Journal
Birmingham bank enters Anniston market with new loan production office Birmingham Business Journal
Port Huron Township utilizing $4.6 million state loan for water main work next year - The Times Herald
Port Huron Township utilizing $4.6 million state loan for water main work next year The Times Herald
Kodak Loan Debacle Puts a New Agency in the Hot Seat The New York Times
Fitch Rates Owl Rock CLO V, Ltd. Fitch Ratings
Mnuchin says clawback of Fed loan funds will still leave next U.S. administration a 'bazooka' - Reuters
Mnuchin says clawback of Fed loan funds will still leave next U.S. administration a 'bazooka' Reuters
3 things to know when refinancing a personal loan FOX 5 Atlanta
How Trump Maneuvered His Way Out of Trouble in Chicago The New York Times
'Little house we love so much': De Pere couple, Habitat for Humanity celebrate loan payoff by ripping apart mortgage - Green Bay Press Gazette
'Little house we love so much': De Pere couple, Habitat for Humanity celebrate loan payoff by ripping apart mortgage Green Bay Press Gazette
Fitch Downgrades the Maldives to 'CCC' Fitch Ratings
Fitch Affirms Umgeni Water at 'AA+(zaf)'; Outlook Stable Fitch Ratings
Types Of Personal Loans Forbes
Federal Regulators Greenlight Small Installment Loans From Banks The Pew Charitable Trusts
Secretary DeVos Fully Implements President Trump's Presidential Memorandum Extending Student Loan Relief to Borrowers Through End of Year - U.S. Department of Education
Secretary DeVos Fully Implements President Trump's Presidential Memorandum Extending Student Loan Relief to Borrowers Through End of Year U.S. Department of Education
A Guide to Paying Off Your Student Loans ASAP Harvard Business Review
Best Online Personal Loans for November 2020 Investopedia
What is a Cash Advance Loan?
A cash advance loan is a short-term loan secured by your paycheck. It is also known as a "Payday Loan".
Federal Debt Consolidation Loans For Students
For American students, the U.S.
Guide to Secured Personal Loans
Here is a useful guide to secured personal loans. A secured personal loan is the generic term for a loan.
What are Home Improvement Loans?
Home improvement loans are loans specifically designed by loans companies to help you fund an essential home improvement projects.Home improvement loans provided by loans companies are secured on the value of the borrower's property.
Where to Look for a Fast Homeowner Loan
If you're looking for a fast homeowner loan, you might not know where to begin your search.Some banks and finance companies can take weeks to make loan decisions, and if you need a fast homeowner loan then that's time that you can't afford to spend waiting.
What is a Commercial Business Loan?
A commercial business loan is designed for a wide range of UK small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment.Finance is the lifeblood of a business.
What is a Student Loan?
Not everyone is aware of what is a student loan? Student loans, as the name implies, are available to students who require help with living costs while studying.Student loans are part of the government's financial support package for degree only students embarking on a course of higher education.
What is a Bridging Loan?
A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new property completion prior to your existing property having been sold.A bridging loan is in simple terms a short-term mortgage that is secured against the property that you are selling, with the money that is lent being used to complete the purchase of the new property.
Making Cars Accessible Through Secured Car Loans
Enervated by the hectic schedule at the work place, traveling back to home in a public transport carrier seems to be a grueling task. This reasons out the transformation of cars from luxuries to necessity.
The Wonders of Compound Interest
Albert Einstein called compound interest "the greatest invention of all time." It has even been referred to as the "Eighth Wonder of the World.
Debt Consolidation - Watch out for Payday Loans
Most any large city has a number of small shops offering payday loans. They're often found in strip centers; sometimes they double as pawn shops.
There is more than one type of loan. Depending upon your situation, you might find that what works in one circumstance does not work in another.
Guide to Personal Secured Loans
Here is a useful guide to personal secured loans. A personal secured loan is the generic term for a loan.
What is Credit Scoring?
Have you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit.How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to determine if you'd be a good risk for credit cards and auto loans.
A Beginners Look at Secured Homeowner Loans
Secured homeowner loans come in a variety of different types and amounts, and are intended for a wide variety of uses.These loans can be used for the same purposes as most personal loans? they can allow you to purchase a new car or other vehicle, pay for education expenses, make improvements or repairs to your home, or even consolidate several debts into a single low monthly payment.
Short Term Solutions to Cash Flow Problems
If you're in a crunch for money, either because of an unexpected emergency bill or other reasons, you may want to look into check into cash services. Available online, check into cash services follow a three tiered process:First, you send them a check.
Motorcycle Loans For Military With Bad Credit
Motorcycle loans for military with bad credit aren't hard to come by. In fact when you start your search for the lender you will find more then an ample supply of companies just waiting for your business.
Cash Advance Payday Loans
The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans - which come at a very high price.
Online Payday Loans Offer Quick or Instant Approval For a Fast Cash Loan
Online payday loans companies offer quick approval with their online application process. Once you have entered your personal information and source of income, you can be approved for a payday loan in as little as five minutes, and a cash advance can be deposited in your checking account the next day.
About Personal Loans
What are personal loans? They are unsecured loans that a borrower obtains for various purposes. This type of loan is often used to consolidate outstanding debt into one monthly payment, but it can be used for other things such as paying for a wedding, a vacation, or something similar.
|home | site map|
|TIGER MEDIA© 2006|