Hawaii residents still borrowing money to make ends meet despite the latest interest rate hike
By Kristen Consillio
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HAWAII (KITV) — Despite higher interest rates, Josh and Arianna Graham recently took out a loan for a second home so that their three young children will be able to live here in the future.
“It doesn’t stop us from borrowing money because like living in Hawaii that’s how we get ahead,” Arianna Graham said. “Since prices have gone up so much and it cost more for everything, it’s eating up all of our extra income.”
Because the cost of living is so high here in Hawaii, for some, borrowing money is a necessity.
“By the time you save up because of inflation you no longer have enough,” added Josh Graham.
Many are still taking out loans to consolidate higher-interest debt or for more frugal purchases such as used versus new cars.
“The need for loans are still out there,” said Gary Nakata, controller at Hawaii Central Federal Credit Union. “No matter how the economy is, no matter where inflation is, people still need to borrow to move on in their journeys in life.”
According to credit union, rates on first mortgages now range from 5.25 to 5.75-percent — about double what it was last year at 2.25 to 2.75-percent.
“We’re both from here, we both don’t ever plan on leaving so we’ve just accepted that reality,” Arianna Graham said.
Some finance experts say the Fed’s strategy to combat rising inflation is working.
But with fluctuating rates, borrowers should definitely shop around.
Higher interest rates are good news, however, if you have money in the bank, where returns are now above 4% on savings accounts.
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