How To Guide For: Understanding The Effects Of Rising Interest Rates

An Interest Rate is the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account. There has been so much reporting on interest rates lately in the news and some reports are saying that the Federal Reserve will be raising interest rates come this December. So what does this mean for you and me for all of us. Well this means that when consumers pay less in interest, this gives the consumer more money to spend, which can create a domino effect of increased spending throughout the economy. But when consumers pay more in interest this means that consumers don't have as much disposable income and must cut back on spending. To get more in depth information about the effects of rising interest rates -- click the pictures below to read the articles.