BUFFALO, N.Y. (WKBW) — Interest rates are now a quarter point higher than they were when we began this week.
This is the latest move in the federal reserve's long fight against high inflation.
This week's hike is the Federal Reserve's 8th increase in 12 months.
When we began 2022, The Fed was holding benchmark interest rates just above zero percent.
One year later -- this latest increase brings it to 5%.
Credit card interest rates will likely increase over the next few billing cycles. Those with car or student loans will also see their monthly interest rates go up.
New homeowners could also pay more in mortgage interest.. compared to people in the same position a year ago
Sarah Blankenship the COO of Wilcox Financial and Powerhouse Money coaching is encouraging people to look closely at their spending as interest rates continue to rise.
"Pretty much all borrowing is going to be impacted...Taking just a moment to step back and determine if is it a want. Is it a need? Do we have to buy it now? Could we get it used?" Blankenship said.
She says first pay off your credit cards and if you can't afford to shop around for lower fixed interest rates and cut back on daily purchases so you have more money to pay down those cards.
She says you should also take a close look at your credit card statements and make sure there are no fraudulent charges or subscriptions you forgot to cancel.
You can find more tips, here.
