INDIANAPOLIS — The ongoing rate hikes by the Federal Reserve are affecting all of us.
The hikes continue to happen because inflation is still at 6% and raising rates is how the Fed tries to get that number down.
For us, that means credit card debt will cost more money likely by next billing cycle.
Borrowing for homes and cars are also more expensive. Not only will those new loans cost more money, but determining who gets the money will be a more selective process as well.
It's called credit tightening.
"When you get approved, that credit line isn't as generous. All of that is part of the idea of reducing demand to get inflation under control," said Bankrate.com's Greg McBride.
There is a silver lining, if you want to call it that. Your savings will finally earn more money if it's parked in the right place. High-yield savings accounts are paying close to 4% and some certificates of deposits are paying more than 5%.