So, finally, the election is over. We can stop the endless focus on politics. Well, maybe not, but we can turn our attention to next year. What does the crystal ball look like? What can consumers, you and me, expect next year? Rising interest rates and relaxed lending standards. So, what does this mean?
According to cbsnews.com, the 2017 forecast is that more people will fall behind in their credit card and car payments. Why? Because, when interest rates rise, the minimum payments on credit cards and other loans that are tied to interest rates, also go up. So, if your minimum payment on your credit card is $250.00, it might go up to $300.00. This in turn, can squeeze the average household, and, in turn, cause people to fall behind in car payments.
Lenders are already loosening standards for car loans, so, if they gave car loans to people who were on the edge, that could tip the balance.
If you have a balance on your credit card, try your best to pay more than the minimum, and, try to make the payments on time. If you are having a hard time doing those things, you should at least consider whether bankruptcy would help you.
Daniel J. Winter
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois.