Lexie wrote: Since this article was back in 2012, where do we stand now? Personally we are trying to pay down our debt instead of borrowing any. If only the interest rates on savings were at the borrowing rate.

If only, Lexie! They sit on our money and give us a pittance in return, meanwhile when we need to borrow some they charge through the nose for it.

Since this article was back in 2012, where do we stand now? Personally we are trying to pay down our debt instead of borrowing any. If only the interest rates on savings were at the borrowing rate.

FrugalFran wrote: This article [Broken link removed] suggests that the idea of raising rates gradually may have been misunderstood, but that was mentioned by only a couple of officials at the meeting, so maybe they do intend to move slowly.

That is my opinion. I think the FED wants to be cautious here.

This article suggests that the idea of raising rates gradually may have been misunderstood, but that was mentioned by only a couple of officials at the meeting, so maybe they do intend to move slowly.

The Fed is being extremely cautious in raising rates. They fear it could cause another recession if they raise it too quick too fast. The problem is I am not sure we know how inflation will play out.

FrankN wrote: Lets hope so, but it may be too little, too late.

They only increased it to 0.75%, still really low historically speaking. With consumer borrowing now at $3,762.9Bn, a third again as high as it was when the thread started, borrowing doesn't seem to be slowing much.

Lets hope so, but it may be too little, too late.

Thought I read where the Federal Reserve plans another rate increase before the end of 2016. In the event that takes place the brakes may just be applied?!

Borrowing is so cheap right now, that is another big reason why borrowing has grown so much recently. At some point this will absolutely turn and we will hit another cycle.

I wouldn't be surprised if the numbers rise even more these years. Living has been more costly in general and people grow to be more interested to secure their future. It's also ironic how another article mentions about credit costs being higher for elderly.