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On November 1, 2005, the Federal Reserve Bank [Fed] raised interest rates one quarter of a percentage point. Since Summer 2004, outgoing Fed Chairman Alan Greenspan has been raising interest rates on a regular basis since hitting its low point of just 1%. Now at 4%, Greenspan is expected to raise rates two more times before exiting office in January 2006. Will the higher rates stave off inflation? Will the new Chairman continue Greenspans incremental adjustments upward or will he let rates level off? Speculation is rampant but there is one thing you can know for sure: you will pay more for many of lifes expenses.

A rate hike by the Fed means that you will likely pay more for something including:

Credit cards. Not known for showing much restraint, you can bet credit card companies will continue to jack up interest rates except for their best customers. Rates of 12, 15, and even 21% or more are reappearing.

Mortgage rates. Holders of fixed rate mortgages are fine, but those with variable rate mortgages will pay more. A lot more if they havent felt previous rate hikes and their mortgages are due for an upward adjustment. More money to pay mortgages means less money for disposable items.

Car loans. If you need a new car and can still find zero percent financing, then grab the offer. Car loans, personal loans, home equity loans, home equity lines of credit, loan consolidations, will all continue to increase.

Add in high fuel prices, anticipated hikes in medical costs, and Americans are getting squeezed. With the holiday season fast bearing down upon us, retailers will have to slash prices in order to attract customers who are holding a dwindling cash reserve.

For people not holding excessive debt, the Fed rate increase will be have little or no effect on them. For everyone else, the pinch is on!

Tags: Alan Greenspan, Car Loans, Chairman Alan Greenspan, Excessive Debt, Fed Chairman, Fed Rate Increase, Federal Reserve Bank, Fixed Rate Mortgages, Fuel Prices, Home Equity Lines, Home Equity Lines Of Credit, Home Equity Loans, Loan Consolidations, Medical Costs, Mortgage Rates, Personal Loans, Rate Hike, Rate Hikes, Upward Adjustment, Variable Rate Mortgages

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Citibank Credit Cards Eliminate The "any Time For Any Reason" Interest Rate Increase!

Just about everyone over the age of 18 has at least one credit card- if not four or more! Credit cards are very convenient, but can quickly turn into your arch nemesis. Consider opening your credit card statement to find the interest rate has been increased, yet you did not make your payment late, and can determine no other reason for the rate hike. Citigroup Inc has decided to put an end to many of the interest rate increases that consumers are baffled by.

Considering that the average American credit card holder has over $8,000 in estimated credit card debt, the interest rates on these accounts make a huge difference in how much money is paid back for credit card purchases. Credit cards are the solution for shopping online, making travel reservations, and eliminating the need to carry large amounts of cash around with you. Unfortunately, though, most people are not all that good about paying off their entire credit card balances at the end of each month, and therefore end up paying interest on all of their purchases.

Why Credit Card Companies Raise Interest Rates

Did you know that for most credit card issuers, raising the interest rate on your credit cards is a fairly standard practice? They can raise the interest on your account if youve made a payment late on any OTHER credit card or loan; this is called the universal default, and consumers who are late once on one of their accounts are likely to see every single credit card statement displaying the interest rate increase. Credit card issuers can raise your interest rate for the dreaded, anytime, for any reason disclaimer typically found within the credit card terms of agreement!

Citigroup Inc Helping Consumers Save by Eliminating Unnecessary Interest Increases

Cardholders of credit issued by Citigroup Inc will no longer be the victims of interest rate increases on Citigroup cards due to paying another account late. They also will not raise the rate under the anytime, for any reason clause. In fact, for credit cardholders of Citigroup Inc issued credit cards, the only reason for an interest rate increase will be if you specifically make a late payment to your Citigroup account.

Credit Issuers to Play Follow the Leader

It is likely that other credit card issuers will follow Citigroup Incs example with time, as currently many improvements are being made throughout the credit industry in the favor of consumers. If you arent sure of your credit card companys policies for interest rate increases, just ask! If they participate in the universal default raising of interest rates, or say they can raise the interest on your account at any time and for any reason, you may want to consider transferring your balances to a Citigroup Inc issued card, as it has the potential of saving you hundreds (perhaps even thousands) of dollars in interest fees over time.

Tags: Arch Nemesis, Cardholders, Citibank Cards, Citibank Credit Cards, Citigroup, Citigroup Inc, Consumers, Credit Card Balances, Credit Card Debt, Credit Card Holder, Credit Card Issuers, Credit Card Purchases, Interest Increases, Interest Rate Increases, Interest Rates, Quot, Rate Hike, Rate Increase, Shopping Online, Travel Reservations

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