6 Money moves to make before a potential rate hike

1022. If you were expecting interest rates to drop, rising inflation is making it more likely for them to go up this year. Laura reviews six moves you shouldn’t overlook in a rising-rate environment to make your money work harder for you.

Key takeaways

• When inflation rises, the Fed raises interest rates to slow down spending and demand, eventually causing prices to decrease so spending increases.
• With sticky inflation and the expectation of rate hikes, borrowers need to watch interest rates on their debt, using a tool like my PFS.
• When variable-rate debts, such as credit cards, increase, it’s wise to pay them off faster and reduce the interest expense.
• If you’re considering a large purchase, like a home or vehicle, maintaining good credit and locking in a lower interest rate sooner rather than later are wise strategies.
• Higher interest rates benefit savers, so using a high-yield savings account can maximize your earnings.

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