ST. LOUIS — In St. Louis, free resources are available to help families get a better handle on their finances.
If you have credit card debt, experts say now is the time to take action due to Wednesday’s interest rate hike. Americans are dishing out more cash for day-to-day expenses these days. With the Federal Reserve raising the interest rate, experts say it may make many think twice about spending on unessential items.
St. Louis Treasurer Adam Layne's job involves more than managing the city's finances. The Office of Financial Empowerment also helps families better control their money too.
"We like to give people alternatives to predatory lending,” Layne said.
That’s a growing concern now after the Fed raised its key interest rate to the highest level in nearly three decades.
"When the Fed rate rises, that also means your credit card rate could go up,” Layne added. He says those looking for a new loan or mortgage may want to re-consider. "It just makes it more expensive to borrow so if you're going to get a new loan, if you're looking to re-finance or re-capture some of those savings, that time has gone."
Why is this happening?
"Especially for low-income households, the type of inflation that we're seeing, it's quite costly,” said Saint Louis University Professor Dr. Dave Rapach. He points out The Fed is trying to decrease demand for goods and services, in hopes of keeping prices from going up even more. "Businesses [may] cut back on investment spending because it becomes too expensive to expand your business, buy a new line of computers, [or] build another plant. Households find it’s more expensive now to borrow to buy a new car, buy an appliance, what have you."
It boils down to cutting down spending on things consumers really don't need. Experts say if you can, work on paying down your credit card debt.
Treasurer Lane says the good news for most loans and mortgages you already have...."If it's a fixed rate, you're ok. Your rate is not going to go up."
The city's Office of Financial Empowerment allows you to walk into its office at City Hall five days a week and get help. One-on-one financial credit counseling service is free.
Click here to learn more information or call the office at (314) 622-4700.