44°F
weather icon Clear
app-logo
RJ App
Vegas News, Alerts, ePaper

Increase is on the horizon for interest rates

The Federal Reserve has kept interest rates at record lows for over six years, but financial analysts warn that’s finally going to have to end, and if you’re not prepared, it could cost you.

“The Fed is sending signals they’ll likely raise their rate,” said Shane Stewart, a certified financial planner.

Exactly when the Federal Reserve will raise its federal funds rate remains up in the air, but when it happens, expect big ripples.

“The stock market goes down and has jitters. It will affect credit,” he said.

Costs for anything we buy on credit will go up, Stewart said. With the average household hold nearly $7,000 in credit card debt, the increased costs for plastic will be one of the most expensive.

“If you’re already pinched a little on paying your credit cards, those rates going up will make things worse,” Stewart said. “The best thing that can be done for an individual is to minimize the use of credit and the amount you owe.”

If you’ve been looking into buying a new home or car, now may be the time while interest rates are at their lowest.

“It doesn’t mean you have to rush to the market because the rates will go up slightly and measuredly — won’t go up all at once,” Stewart said.

He said your financial house needs to be in order. A good place to start is by fixing your credit score. With slight rate increases, your credit worthiness may still be a big factor

“The Fed will have their rate increase. In turn, those offering credit will have their increase. They still make that decision based upon what your credit score is,” Stewart said.

And for the first time in years, your savings will start earning a little more interest.

“Rates are very low, which is great for your debt but bad for your savings. And as the rates increase, it will be great for your savings. It will help that a little bit,” Stewart said.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Osteoporosis more prevalent in women but can also affect men

Worldwide, 1 in 3 women over age 50 will experience a bone fracture due to osteoporosis, according to the International Osteoporosis Foundation. But 1 in 5 men over age 50 will have the same issue.

Why are some kids prone to ear infections?

Ear infections often are a direct result of a common cold, allergy or other upper respiratory illness. These illnesses are more common during the winter, so ear infections also are more common this time of year.

Will your smartphone be the next doctor’s office?

The same devices used to take selfies and type out tweets are being repurposed and commercialized for quick access to information needed for monitoring a patient’s health.

Jason Segel confronts mental health ‘stigma’

In his new series “Shrinking,” Segel portrays “psychological vigilante” Jimmy Laird, a brutally honest therapist who is dealing with a full emotional plate.