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