Don't Spend On Credit Towards Christmas As Interest Rates Ready To Rise Again

1st December 2022

Things are not looking good for interest rates as inflation continues to rise. Now is not the time to get Christmas on credit as interest rates will be hard to bare in 2023.

We will likely see another hike by the US Federal Reserve, but whether its 0.5 or 0.75 percentage points hangs in the balance, according to futures markets. The decision is scheduled for Wednesday 14 December. The following day the Bank of England will announce the new rate for the UK.

Recently the UK has followed on from the USA and rate around the world have been rising.

The European Central Bank has also been raising rates and again looks likely to continue in its quest to handle inflation in the Eurozone

One thing is for sure that any increase will impact on mortgage rates and any balance on credit cards and loans

Now is not the time to buy for Christmas using debt of any kind and pile up problems for 2023 on household finances.

Reducing credit card debt should be a number one resolution for 2023 and why not start right away in 2022.

Interest rate look likely to go up monthly for the early part of 2023 in addition to any December rise.