4 Ways Rising Interest Rates Could Impact You

By Will Koch

Our latest COUNTRY Financial Security Index1 survey asked 1,023 Americans what worries them about interest rates and how they could be affected. Here are four of the biggest takeaways. 

Consumer confidence is down for the first time in a while.

According to the survey, only 56% of Americans say they feel financially secure today. That’s down five points from only three months ago (61%). This changes how people spend and save, not to mention their willingness to pay down or take on debt. It’s no surprise 35% of those polled say interest rates will have a “negative impact” on their ability to reach their financial goals. 

Plans for big ticket purchases are on hold.

Nearly three in ten Americans (29%) have postponed plans for large purchases that require a loan, like a car, boat or recreational vehicle. Almost one in four (22%) will delay buying or refinancing a home. About the same amount (26%) of Americans will either cut back on credit card use or pay them off entirely. 

Some will change how they save money for a rainy day, and their future.

Nearly one in five Americans (18%) say they’ll take advantage of rising interest rates by diverting more money into traditional savings accounts. About the same amount (17%) want to make changes to their investment and retirement accounts.

A financial professional can help you navigate this market. 

It’s been a long time since we’ve spent, saved and invested money in a high interest rate environment. Even if you haven’t experienced this kind of market before, a pro can help you with investment and savings strategies, debt prioritization, and common sense ideas to help you navigate the changing environment.2

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Have questions?

Contact your local rep or call us at 866-COUNTRY (866-268-6879).

1The COUNTRY Financial Security Index® survey of 1,031 U.S. adults, fielded by market researcher Ipsos.
2Financial planning professionals with COUNTRY® Trust Bank (CTB) and its Investment Solutions Representatives, who provide marketing, solicitation, and client assistance on CTB’s behalf; sales of products by Registered Representatives of COUNTRY® Capital  Management Company. The specific team(s) involved will vary by need.

The COUNTRY Financial Security Index survey has measured Americans' feelings about their personal financial security since 2007. Surveys are conducted using Ipsos' KnowledgePanel®— a national, probability-based panel, designed to be representative of the general population and includes responses from approximately 1,330 U.S. adults for national surveys. The margin of sampling error for a survey based on this many interviews is approximately +/- 3.2 percentage points at the 95% confidence level.  See the full results.

COUNTRY Financial® is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, COUNTRY), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.