Monday, November 16, 2015

Things to consider before the Fed raises rates ...

Just a quick article. Everyone is predicting that the Fed will raise interest rates next month. I came across this article that I thought was interesting:

Image courtesy of jscreationzs
5 moves to make before the Fed raises rates - Obviously, it talks about 5 things people should consider doing within the next month. Three of the suggestions relate to the work I do ... bankruptcy.

"Pay down credit card debt. If you can, pay down as much as possible, given that credit cards will start to hike their interest rates soon after the Fed makes its move, Schulz noted. "Even a small increase means money out of your pocket," he said.

Take advantage of zero-percent balance transfers. It's still easy to find these offers, so consider taking advantage of one now, especially if you can't quickly pay down your current credit card debt. If you're struggling to pay off your cards and have a high APR card, Schulz said, it could be time to think about one of these cards. Some of the best zero-percent balance transfer options include Slate from Chase and Capital One QuicksilverOne Rewards, according to a new survey.

Refinance your mortgage. While mortgage rates are still near record lows -- and the Fed's boosting of short-term rates has only an indirect impact on long-term rates -- the Mortgage Bankers Association sees 30-year fixed mortgage rates rising to 4.5 percent next year and 5.2 percent in 2017. For homeowners with an adjustable-rate mortgage, it's an especially good time to consider refinancing into a fixed-rate loan."

These are the types of events that can drive people into my office. If you are paying the minimums of on your credit cards now, the slightest boost can put the payments beyond a person's reach. People who have been living on credit should evaluate their financial circumstance and plan for this change.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at

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