Oct
27

What’s Good About Rising Interest Rates?

October 27, 2013

Mortgage interest ratesAll the talk about rising interest rates probably has you wondering, “just who benefits from higher interest rates?” After all, higher rates mean less money in your pocket on all kinds of credit purchases, not just mortgages in Chicago. But, there are some positive outcomes of higher rates, as explained in the recent Equifax Finance blog article, “

Five Good Things About Rising Interest Rates.”

If you plan on or are using credit, you probably feel like there is no good reason for higher rates, but think again. Higher rates encourage responsible use of credit, motivating you to cut back on non-essential credit purchases and forcing you to pay cash. If you know how much that purchase will cost you including interest, you just might decide to save up for you and use cash instead. Relatedly, higher rates will force you to get your debt under control. If Americans keep spending the way they have been, personal debt load will get very high. Living with very little debt is good for your credit score and will make getting a mortgage easier, when that time comes. Lenders are putting more resources into competing for buyers and big-ticket buyers are more likely to go ahead and make a decision to lock in a rate. Higher rates also mean increased returns on your savings, like savings accounts, savings bonds, certificates of deposit, money market funds and other accounts.

Interest rates were at historic lows; but as the economy has picked up, rates are slowing rising back up again. No one knows how much and how fast they’ll rise, but you can see that there are some personal financial benefits to higher rates.

Read the full article and learn more about interest rates, real estate and

credit scores at the Equifax Finance blog. The blog has lots of help advice on all types of personal finance topics, from identity theft protection to insurance to taxes to retirement and more. Check it out today.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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