Federal Reserve Raises Interest Rates for First Time in Three Years

The Federal Reserve has raised interest rates for the first time in three years. The quarter of a percentage point increase will affect how much consumers pay on credit card debt and their savings.

According to Clark Howard, a WSB Consumer Expert, this decision impacts short-term interest rates. He notes that credit card interest rates will go up, but what consumers can earn on saving should also increase.

'So it means that your credit card interest rates are going to go up,' Howard said. 'What you can earn on saving should also go up.'

Howard recommends putting available money toward reducing credit card balances for those carrying debt. He advises paying down debt with high interest rates as soon as possible.

'There's a big advantage right now with anything that's quoting interest rate debt to put every effort you can afford into paying down that debt,' Howard said.