Warns Consumers to Cut Back on Debt Quickly in 2016

With first Fed rate rise already in place and more to come, consumer debt will become even more costly before long, reports


Ft. Lauderdale, FL -- (SBWIRE) -- 01/06/2016 --, a leading online authority regarding consumer finance, urged all Americans to immediately reduce their dependence on credit cards, personal loans, and other forms of debt. With the Federal Reserve having just raised its overnight lending rate for the first time in years and signaling more hikes to come, consumer credit that varies with such interest rate benchmarks has already become more expensive and will only continue to climb in cost. Consumers who pay down their debts or quickly take advantage of opportunities like the debt consolidation options detailed at will benefit greatly, avoiding what are sure to be higher interest rates to come.

"The Fed finally took long-anticipated action, bumping the federal funds rate to a quarter of a percent," representative Ariel Pryor said, "That might not sound like a big deal to some people, but the profound effects of that increase are already rippling through the economy. Many banks have already raised rates on their credit cards and other forms of credit, and the situation is only going to become worse when the Federal Reserve next acts. Cutting back on consumer credit dependency right now and throughout 2016 should therefore be considered a high priority for every American family, and we have some excellent tools for doing so at"

With online portal Bankrate only being able to identify a handful of fixed-rate options, the vast majority of credit cards today come with interest rates that vary according to some index. Most commonly, this is the so-called "prime rate," the interest charged for commercial lending under standard terms. The prime rate itself is greatly influenced by what it costs banks to borrow money from one another for a single night, with the nation's network of Federal Reserve banks ultimately determining this through the level at which it sets the so-called "federal funds rate."

Having mostly met its employment targets, the Federal Reserve on December 16 raised the federal funds rate from a longtime level effectively at zero to a quarter of a percent. Major banks around the country responded immediately, increasing the variable interest rates on a wide range of consumer credit vehicles, from credit cards to personal loans.

With this development almost certainly being only the first in a series to come, analysts now recommend that consumers look seriously at reducing their dependence on any form of debt that carries a variable interest rate. With a wide range of debt-related and financial tools and information, can offer a number of productive ways to accomplish this.

Those interested in keeping up with further developments in the world of consumer finance can do so by staying tuned to or the company's Facebook page at

About provides everything needed to make mincemeat of debt and attack even the toughest financial problems with innovative, eye-opening tools, strategies, and advice.