Your credit card and mortgages are about to get more expensive
Maxed out your credit card? Gone a bit too far with that new car you didn’t really need? The bad news (and there is no good news here) is that your loan repayments may soon rise.
If you’ve been following the news, you may have noticed that the US Federal Reserve increased its benchmark interest rate from 0.75% to 1%. That happened only for the third time in ten years.
What does that mean for you? Well the UAE Central Bank did the same here soon after. All this means that banks are likely to pass on the high interest rates to their consumers. So if you have a credit card, car loan, mortgage – whatever it is, you are likely to soon face higher repayments. Anyone on fixed interest mortgages will be spared the hike.
And if you don’t like any of that, here’s where it gets really annoying: banks are not likely to increase the interest rates on deposit accounts. So if you have a fortune saved in the bank, you won’t be making any extra cash.
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