Here's how Fed rate hike would pinch borrowers

Category: Small Business Borrowing Published: Wednesday, 15 July 2015 Written by Admin

For many Americans, debt is affordable and makes sense at these low rates. But nows the time for borrowers to look at what they owe and figure out how much their interest costs will rise if the Fed begins to lift rates, said Greg McBride, chief analyst at rate research firm Bankrate Inc. Its far better to plan than to face sudden payment shock.

The best strategy in the face of higher rates is to pay down debt, if possible. Barring that, there are other ways to make rising rates easier to bear.

Heres a look at the most common consumer and small-business borrowing tools and what to expect once the Fed begins to lift rates:

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