How Your Wallet Should Look In 2015

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.

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