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Now is also a good time to put aside emergency savings, financial experts say.

With interest rates rising along with worries about an economic slowdown, now is a good time to pay down credit card balances and bolster emergency savings, financial experts say.

The Federal Reserve raised its key interest rate by an aggressive three-quarters of a percentage point in June, and it is expected to continue increasing rates until it gets inflation under control. The Fed’s goal is to cool the economy without pushing it into a recession. That’s a difficult balancing act, so it makes sense to prepare in case things go awry.

A good first step is to pay down high-interest credit card debt. Rates on credit cards are closely linked to the Fed’s moves on interest rates and are usually variable. So they are likely to rise — which means you’ll be paying more interest if you carry balances

Keep reading this article on The New York Times Your Money.

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