OMAHA, Neb. (KMTV) — Brad Rueb is on top of his credit card payments but admits a higher interest rate could spell trouble for others.
"I can see if it came to whether you need to extend it any interest rate hike could hurt your monthly finances," he said.
Mortgage broker Clint Garner agrees, saying credit card holders will likely see the most impacts from the Federal Reserve’s interest rate hike.
"We’re gonna see more people carrying more debt on their cards, as an expense that is going to go up," Garner said.
The interest rate has now increased by 0.75 of a percentage point, in response to record inflation. The rise is the fourth seen by the federal reserve this year. Garner said the move needed to happen.
"If the fed weren’t raising these rates, the price of goods that seem expensive today was only going to get worse," he said.
According to Rueb, the hikes are affecting mortgages in addition to credit card borrowers.
"I have family that built a house," Rueb said. "I know that came into play."
Garner’s best advice for borrowers is to be prepared to pay for the things they need to exist right now while these rate hikes are going on.
He knows, however, that this can be easier said than done especially for those who use credit towards living expenses.
"Those people I absolutely feel for," Garner said. "Today’s another 0.75% of a point and that’s the last thing they need right now."
Garner said borrowers can expect to see an increase in their next statements.