For the average American, rising inflation, which pushed the central bank into hiking rates back in 2015, isn’t necessarily bad. It’s generally considered an indication that the economy is doing well, and paves the way for raises and a better return on your savings.
However, in daily life, higher interest rates mean that you’ll have to pay more to access credit.
“The cost of borrowing has increased, whether you are dealing with mortgage loans, auto loans, student loans or credit cards,” said Ric Edelman, co-founder and executive chairman of Edelman Financial Services. “It’s more expensive now than it was a month ago and it’s projected that it will get higher still.”
If you’re concerned about what further increases in the Fed’s benchmark rate will mean for your own bank account, mortgage or credit card, as well as student debt, home equity loan and car payment, here’s a breakdown of what’s in store — and what you can do about it today.