According to our Q3 2022 Consumer Pulse, rising interest rates is one of the top five concerns for Americans in 2022. It’s understandable — a rise in interest rates can impact numerous parts of your financial life.
When interest rates go up, there should be no direct impact to fixed-rate mortgage or auto loans, if you have them. With a fixed-rate loan, the interest rate doesn’t change throughout the life of the loan. However, a loan with a variable interest rate, like a credit card, may go up or down based on changing market conditions.
If you hear that “interest rates are rising”, any loan you have with a variable interest rate may eventually rise as well. Your payments on variable-rate loans and the cost of potential future loans, whether they’re variable or fixed, may rise as interest rates do.
By knowing the basics about how interest rates work and their potential impact on your finances, you can be prepared for rising interest rates.
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