The Federal Reserve has raised its benchmark interest rates for the 7th time in a row. The central bank is expected to keep pushing rates higher next year in a continued attempt to tame decades-high inflation.
What does this mean for you? The raised interest rates mean higher borrowing costs; this includes auto loan rates and home equity lines of credit.
There are some ways to maneuver your money to benefit from rising rates and protect yourself from their costs. CNN made this list of things you can do.
The first thing to do is take advantage of bank savings by shopping around. Right now, fed rate hikes are beginning to significantly impact online banks and credit unions. They’re offering higher rates, as much as 3.75%, and have been increasing as benchmark rates go higher.
The next way to protect your money is minimizing the bite of credit cards. You can expect a hike in rates within the following few statements. If you’re carrying balances on your credit cards, financial experts suggest transferring them to a zero-rate balance transfer card that locks in a zero rate for between 12 and 21 months.
The third piece of advice to protect your money is to lock in fixed rates now. If you’re close to buying a home or refinancing one, lock in the lowest fixed rate available as soon as possible.
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