In this day and age, it seems quite normal to be in debt. This country is in more debt than ever and more and more peole are contemplating bankruptcy. So many people have the mindset that they want and deserve things before they can actually afford them. That type of thinking is really hurting our nation. Saving money is something that is just not taught enough these days.
For those people that actually have money to save and invest and are not in debt, they’re asking themselves “will interest rates go up in 2010?”. You see, for many who have done things correctly and have been sensible about their cash, they are now being penalized for all the trouble the U.S. economy is in today. Low interest rates harm the people who were economically smart and never borrowed over their heads. Additionally, low rates damage individuals who live on a set income and rely on the interest they make on their money. This is typically senior citizens and retirees and anyone who does not have a steady income.
As a person ages, it is prudent to have a greater percentage of money in investments that are safe and easily accessible. This is because you might need the money for emergencies at any time and you need it to live on. It can be crucial that you’ve got the cash easily accessible and the only type of investments that offer that safety are the ones that pay basic interest.
Anybody who wants their cash to be safe and FDIC insured is probably counting on interest income. The best money market rates and CD rates right now are near an all time low and they damage these older citizens. It’s very sad that these people are being hurt and have to watch the government take away the biggest portion of their income.