The Federal Reserve Bank & Your Credit Card
You can bargain at the store checkout. You can add a price or "cash back" for using your credit card. You can save a discount. What do you get might not be a credit card with low interest rates because the Federal Reserve Bank keeps increasing your borrowing costs. The bench mark interest rate is known as the "prime rate" as the U.S. Federal Reserve raised the federal funds rate, the Bank will provide its key interest rate ratchet. Your bank's primerate plus a margin rate your bank charges above prime determines your credit card charges. Many consumers do not want to read the fine print of their bank's credit card agreement. Often confused by the terms, we accept them with gratitude because we can borrow money.
You may not like or even know about Alan Greenspan or his successor. You may dislike all Republicans or harbor disdain for Democrats. Whatever your political leaning, the U.S. government helps to educate and protect you as a cardholder. The Federal Reserve Bank raises and lowers prices. It provides further and protects. Education shall fear, knowledge gives you courage. Take a look at these free resources:
* Choosing a credit card: http://www.federalreserve.gov/pubs/shop/default.htm
* Your Credit Report: What It Says About You: http://www.federalreserve.gov/pubs/consumerhdbk/
* Review other Federal Reserve> Banking Consumer information: http://www.federalreserve.gov/consumers.htm
* Frustrated by credit card debt? The Federal Trade Commission provides educational resources: http://www.ftc.gov/bcp/conline/edcams/ credit / index.html
When backing out of the driveway, many of us sing the song: "I owe ... I owe ... It's down to work, I say." Driving on the highway of boredom at the office, calls our radios blare music and news, "Ecuador banana crop was a record of Dole FoodCompanies to sell food market bananas to 19 cents per pound instead of 29 cents. "Meteorologists drone:" Hurricane Katrina bashes gasoline refineries in the Gulf region. "Economists moan:" Exxon Mobil pumps up prices "(the journey to work is more expensive).
If when the Federal Reserve Open Market Committee interest rates, which decreases the demand for products if we have money to increase economic boom, when, as a buyer, we do not have money, "For Sale" signs blow in the wind. The sevenFederal Reserve Bank to investigate members of bankers, as we spend what "decide things" cost and what is best when we buy or sell. During the past year, the Federal Reserve pushed interest rates twelve times.
The Fed actions are not hold to save us from the counter. We spend a wild rate. As a result of U.S. residents have the lowest savings rate in the Western world. Someday our wallets can be pressed by higher interest rates, to expensive gasoline and home heatingCosts.
We can be as customers if we are to understand the mathematics and the adjectives of advertising and sales. Calculation of what the business offers and what you'll pay to buy the math. The sign "Sale! 50% discount up to 12 clock tampered with" buy now, that is the adjective of sales. In most cases, this means you are using a credit card. Wisdom is the shedding of all charges in the celebration of what money can not buy and debts can not get away.
"A feast isfor laughter, wine makes life merry, and money is the answer for everything. "- Ecclesiastes 10:19