Interest rates continue to rise and make credit card debt more expensive for Americans
After the increase in September, a new increase is projected for December, and MarketWatch points to the card as a tool against debt.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MARKETWATCH · 2 MIN
Anyone carrying a credit card balance in the United States should feel the burden of interest more in the coming months. According to MarketWatch, the cost of loans should continue to rise for these consumers, at a time when the upward cycle has not yet come to an end.
The increase in September has already been recorded, but the expectation is for a new increase in December, according to the report. For those who keep a balance on their invoice, this means living with a cost that continues to rise.
It is in this scenario that MarketWatch presents the credit card as an instrument to combat debt. The article treats the product, often associated with debt, as a possible ally for those who want to reduce liabilities while interest rates rise.
What is at stake goes beyond a specific product. When the rate rises, the way the consumer manages the balance stops being a detail and starts affecting the entire month's budget.
From the perspective of fiscal responsibility, the episode reinforces a well-known lesson: high interest rates especially punish those who spend above their income. Families with organized accounts are less exposed to this shock, and discipline in the use of credit is the first line of defense.
What changes for the investor
For the investor, the message is macroeconomic. Rising interest rates and rising consumer credit costs tend to put pressure on family consumption, a variable that influences sectors such as retail and banks with a personal credit portfolio. The report does not contain market data, so the movement needs to be monitored in the next interest and default indicators before any conclusion can be made about the effect on prices.
Automatically translated from Portuguese.
