is everybody worst when interest rates rise?

Answer 1

Debtors suffer when interest rates rise. Your debt service (cost of debt) goes up and it is more difficult to keep up with the interest payment and makes things more expensive.

Creditors thrive when interest rates rise. If you had considerable savings, your yields become higher. Look at interest rates paid on savings accounts and CD's, they go up and people with money in the bank (creditors, people who loan money to the bank) make more money.

So, no, not everyone is worse off when interest rates go up.

Answer 2

When Interest rates rise, borrowing declines. This reduces the amount of money flowing into the economy, which can be an effective counter to inflationary pressures. It also will tend to slow investment in capital projects, which can slow down the economy. However, if you do not have debt and are an investor, you will make out well.

Answer 3

For Finance and credit solutions I visit this site where you can find all the solutions. http://personalcreditsolutions.info/index.html?src=5YAhih52VaKMtd1

RE :Is everybody worst when interest rates rise?
Follow 3 answers

Answer 4

Ir reduces my purchasing power and I become more cautious but for the most part my investments stay on top of inflation so its all bout riding the storm out.