Prime Minister John Howard said the latest interest rate rise would hurt a lot of people. "This decision will have negative consequences for a lot of borrowers. They will be hurt by it, they will be affected by it, I know that, I sympathise with them, I don't like it.”

“I would say to the borrowers of Australia who are affected by this change that I am sorry about that and I regret the additional burden that will be put upon them as a result." – Said Mr. Howard in Brisbane.

But what does this mean for you?

Rising interest rates have a major affect on mortgagors mostly those with variable interest rates. The difference in a home loan at 8% and 10% can mean you pay over $110,000.00 more in interest over the life of your loan. This is based on a $250,000 home loan over a period of 25 years, according to the money.ninemsn.com.au interest calculator. So it makes sense that credit repair would be something to look into before purchasing a home.

With this in mind these interest rate hikes also mean an increase in how much you have to pay on your personal loans, credit cards and other interest related borrowings, which continually increases the cost of credit.

Credit Repair Australia™ can help you obtain a free copy of your credit report.