Posted: Dec 16, 2015 6:37 PM EST
Updated: Dec 16, 2015 7:46 PM EST
For the first time since 2006, the United States Federal Reserve is raising interest rates, which will impact home loans, credit cards, and of course — the stock market.
It’s not just mortgages.
Financial adviser Todd Macke said paying off a credit card debt or student loans will be a quarter percent tougher to pay off.
Economist Chris Westley believes this change doesn’t do much, if anything, right away.
This raise didn’t come out of left field, which is a big reason the stock market didn’t change much as a result of the announcement.
Westley said we’re now in a new era in America’s economy.
Economist Chris Westley believes this move shows confidence in our market.
“This is only a quarter of a percent in this economy,” Westley said. “If we can’t withstand a quarter percent increase in one short term, then things really aren’t as well as we think they are.”
A lot of economists think they will start raising the rates a quarter of a percent every six weeks
Westley looks at this as the start of one long event. He called it a way to over correct the last few years of an increasing debt.
This interest rate change will raise student loan and credit card rates.
Macke said you may want to watch what you charge for the holidays because of the chance of a higher increase in rates down the road.