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The economy is cyclical in nature. For example, during the Great Depression years (1933—1935), the prime rate^♦ was approximately 1.5 percent. Below are some random time frames that show the fluctuation in the prime rate, according to the Federal Reserve:

1933-1935	1.5%
August 1956	4%
June 1969	8.5%
July 1974	12%
December 1976	6.25%
April 1980	20%
July 1981	20.5%
February 1989	11.5%
November 2001	5%
February 2005	5.5%

These months represent highs and lows over the years. Between them, there were fluctuations. Rates steadily declined from 2001 until 2004, when it averaged 4 percent.

As interest rates again rise, households that have considerable consumer debt may very well be stressed. Their debt burden will increase and continue to grow as loans with variable interest (credit card loans, for example) cost more.