Now that we’ve
crossed one and a half month of the year 2015, you must be wondering what 2015
has in store for your wallets and for the entire economy. A powerful thing
these days is a financial built that is built on reasonable foresight, with the
tanking price of oil, the economic weakness that is prevailing in the world,
the aging bull market and the series of geopolitical headwinds. Every year,
there are some important milestones and trends that are expected to occur in a
year. So, what’s being predicted about 2015? What will be the shape and size of
your wallet? Will you be able to manage your soaring financial obligations?
What does the credit card industry has in store for you?
Federal Reserve
predicts a rate hike in 2015 – A detailed look
According to the
Federal Reserve’s monetary policy statement, interest rates are all set to
increase in mid-2015, the first rise since 2006. The Federal Open Market Committee announced that it keep on winding down
its bond-buying stimulus program by trimming off $10 from its monthly
purchases, thereby leaving the stimulus program to end by October. Fed Chair
Janet Yellen said that the US economy is gradually making progress towards the
FOMC’s aim of sustainable employment.
However, the labor market needs to
recover fully.
When all this
happens, the interest rate increase will have an impact on most of the credit
card users. As the interests of the variable-rate cards are linked to the prime
rates of the bank, whenever the Fed acts on its decision, the people who carry
balance on their variable rate card will see the monthly interest costs start
rising. On the other hand, the savers will see good advantages as the yields on
their savings account will see an increase.
Unemployment level to
reach 5%
If you have an
eye on the bigger picture, you will know that a large portion of the global
economy is in trouble, Europe, Japan and OPEC, the economic resurgence of US is
still sluggish, as it seems. Experts expect more of the same kind of recovery,
if not better in the year 2015. Predictions reveal a GDP growth of 3% and a reduction in unemployment to 5%.
Such statistics could easy take the US back to levels that were never seen
since early 2008, before the seeping in of the financial crisis. Healthy
corporate balance sheets will be seen due to more people a work, more output
and more robust economic growth.
Higher automobile sales
The relatively
old fleet of cars, where an average vehicle is 11.4 years old, the rejuvenating
economy and the still-low interest rates led to a solid year of automobile
sales in 2014. Experts expect 2015 to be even better as a larger number of
consumers gain confidence in their savings opportunities and financial
security.
Consumers may
accumulate at least $60 billion in credit card debt
During the past
few years, there has been a rapid decline in the performance of consumer credit
cards as the bad memory of the Great Recession has faded into memory. The
Americans accrued $36.7 billion credit card debt in 2012, $38.8 billion in
2013, and $60 billion in 2014 which shows a combined amount of $135.6 billion
in only 3 years. This unabated trend is projected to continue in 2015. In fact
according to projections, consumers will incur at least $60 million in new
credit card debt during 2015. Obviously there’s a fake hope that everyone
should follow a budget, spend much less than what they earn and also save for
their rainy day fund.
Massive closing of
branches will be seen among banks
As a larger
portion of the market shifts to mobile applications and the ‘online-only’
accounts, banks have been closing down their branches throughout the US in
massive numbers. There were 1487 net closings in 2013 and this was till now the
highest number that was recorded since 2002. As per research by SNL Financial,
around 1464 branches were closed through mid-November, 2014. Experts expect
this trend to continue and increase through 2015.
Expert advice for
consumers in 2015
As we see that
the condition of the US economy and the world economy is not going through a
very
positive way, consumers have to stay on the safe side by taking some
watchful financial steps. They have to take steps to get rid of their debt by
taking out debt
consolidation loans utah
so that they can use the proceeds to repay their debt obligations with ease.
Boost your savings and create an
emergency fund for better lifestyle.
Therefore, when you’re wondering about the shape
and size of your wallet in 2015, you should take the above mentioned facts into
consideration. Speak to a financial advisor and take advice on the financial
steps to take in order to remain debt free.