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When the U.S. Prime Rate rises, so do many new chapter plan payments.


How much is the U.S. Prime Rate? It usually is about 3 percent higher than the federal funds rate.

Vehicles that are crammed down, paid through a chapter 13 trustee in a chapter 13 payment plan usually receive interest at the U.S. Prime Rate, or sometimes what is known as "prime plus, " which is the prime rate with an upward adjustment. Therefore, if the federal funds rate rises, so does the prime rate. The US Prime Rate just increased today, December 19, 2018, to 5.50%.


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