Money moves to make before the Fed hikes...

Abstract

The Federal Reserve is again poised to raise interest rates in an attempt to slow down the highest inflation in four decades without pushing the U.S. economy into a recession. As rates rise, there are some key money moves financial experts recommend consumers make to put themselves in a better financial situation and prepare for any impending downturn. Now is the time "To really look at your personal budget and identify some ways to pay down your debt more aggressively as these rate hikes are expected to continue." Certain borrowers should be especially careful right now. "Sometimes the lender, for a flat fee, will allow you to lock in today's rate even if you're not going to close for another few months." Some borrowers are considering adjustable-rate mortgages, which offer lower initial rates but eventually revert to market conditions. "There's still a lot of value out there," said Jacqui Kearns, chief brand and strategy officer at Affinity Federal Credit Union in New Jersey, adding that while rates are rising, they're still historically low. The average interest rate on a new credit card is nearly 20%, according to LendingTree. In time, savers may start seeing better rates on savings accounts, Schaeffer said.