Consumers Have a Debt Problem: The Right Kind Matters

Consumers Facing Debt Challenges

Consumers have a debt problem that goes beyond simple high levels of debt. Many are struggling with unmanageable loans and the lack of beneficial credit options. The upcoming decision by the Federal Reserve regarding interest rates could affect all consumers, influencing their financial decisions.

The Impacts of Interest Rates

Interest rates determine the cost of borrowing, impacting both unsecured debts, such as credit cards, and secured loans like mortgages. A rate hike may burden consumers with higher repayment costs, while lower rates could potentially enhance their borrowing capacity.

Debt vs. the Right Kind of Debt

Not all debt is created equal. While some consumer debts serve to build credit and facilitate essential purchases, others can lead to financial distress. Consumers must discern productive debt from harmful debt.

• Manage Debt Actively
• Evaluate Loan Types
• Stay Informed on Federal Decisions