Burlington, VT July 7, 2004 –- The handwriting is on the wall that the era of low interest rate loans is about to give way to a series of interest rate hikes. The benchmark interest rate moved up by one quarter percent for the first time in four years as the Federal Reserve upped the cost of overnight loans to financial institutions. Although the blow of further rate increases is being cushioned by the language of a "measured" pace for these increases, investors and potential home owners can only hope for comparative low rates for only a few more months.

Besides homeowners the rake hike will also impact the auto industry that had been poised to offer zero-percent-interest financing on certain sales. With the expected rise in loan cost auto makers will be forced to veer off the highway of meeting the demand for cars and onto what could be a rough road ahead. Investors at Wall Street, home buyers, and auto makers are getting nervous at the prospect of the prime rate increasing from 1 percent to 4 percent or higher by the end of next year. The rate increase means a typical homeowner could expect to pay an additional $100 a month on their mortgage. Student loan payments will also see a monthly increase.

Gene Jolley, President of Kingdom Financial Principles (KFP) and creator of the Rapid Debt Reducer software, has seen this coming for a long time. Jolley has been educating consumers in his debt-free seminars of the necessity for Americans to gain control over their financial future. Jolley will tell you "there are forces out there that want to keep you in debt" and people are amazed at just how prevalent those forces are. We live in a society structured for debt but that does not mean we should be forced to accept debt as a persons normal course in life.

The rate hike is upsetting to Jolley because he sees a working class largely responsible for the stability of the American economy, being seduced into spending more money than they earn, and then being hit as a thank you with higher rates. That is one reason why Jolley is fervent about his ministry in helping consumers eliminate debt including their mortgages.

It seems an improved labor market coupled with a robust growth in productivity have initiated the Federal Reserves rate hike as warranted under the umbrella of ongoing economic support. Jolley knows however that increased costs of debt means increased debt in a society whose landscape is already marred by unprecedented bankruptcy petitions being filed for the purpose of debt relief. That enormous loss of revenue is being recouped by the finance charges imposed by the lending institutions. Yet consumers seem eager to get into debt.

Gene Jolley knows that real prosperity happens when someone else holds no claim to your interest.

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