STUDY: Fed rate hike will add $1.6 billion in extra costs for consumers

This week, the Federal Reserve will hold a Federal Open Market Committee (FOMC) policy meeting, where it is widely expected Fed Chair Jerome Powell will pull the trigger on a rate hike. The U.S. central bank does aim to raise rates three times this year, but the market is anticipating four rate hikes.

For savers, this is welcomed relief. For borrowers, this is terrible news, especially since total credit card debt has surpassed $1 trillion.

It is only going to cost more money to service the debt. But by just how much?

WalletHub, a personal finance website, has determined that a Fed rate hike would lead to $1.6 billion in extra costs for consumers.

The publication also lists Magnolia, Beverly Hills, Dahlonega, Palmetto Bay, and Greenwich as cities with the least sustainable credit card debts.

Although there’s a myriad of different bubbles forming, debt (public and private) will likely trigger the next economic collapse.