Intelligence

Increasing debt + increasing interest rates = bad news for consumers?

My article is about how an increase in consumers’ revolving credit card debt combined with expected interest rate hikes seems like bad news for consumers. Consumer debt will become more expensive as variable interest rates go up. Existing debt will get more difficult to repay due to defaults. Increased defaults will lead to greater difficulty in getting new credit. Questions: 1. Do you think the scenario I’ve described above is accurate? Why or why not? 2. Why should the typical consumer care about what consumers as a whole are doing with regard to their debt? 3. Why should the typical consumer care about what the Fed does with interest rates? Requirements: Seeking responses from financial experts. For tips on how to
submit an excellent HARO pitch, see http://elifetools.com/how-to-write-the-perfect-haro-pitch/. I prefer email responses that I can quote from directly. If I am able to use your response, I will follow up with you by email or phone for additional details. Content submitted for quoting must be unique. If you have previously published or plan to publish your response on your blog, website or elsewhere, please let me know. Content submitted as background may be previously published; please indicate this in your response. Please include your credentials, email address and phone number. If you are a public relations agent, you must include your client’s email address and phone number along with their response so I can contact them directly. If I include your contribution, I’ll credit you and email you the link to the article when the piece publishes, which usually takes about two weeks.