| The Federal Reserve is likely to hike interest rates again. What that means for you | | |  | WED, FEB 01, 2023 | | | | With the Federal Reserve widely expected to announce its eighth consecutive rate hike Wednesday afternoon, it's a good time to consider how interest rate increases may affect you.
Average credit card rates, for example, are already sitting at record highs, writes CNBC reporter Jessica Dickler. Cardholders usually see the impact of a rate hike within a billing cycle or two, so take time now to make a debt repayment plan and weigh options like a 0% balance transfer.
If you're planning to buy a home or car in the near term, higher rates can eat into your borrowing power. All the more reason to focus on saving to make a solid down payment, and taking steps to bolster your credit score to qualify you for a lender's best-available rates.
In a rising rate environment, it's also smart to periodically reassess where you keep your savings. "If you are shopping around, you are finding the best returns since the great financial crisis. If you are not shopping around, you are still earning next to nothing," said Greg McBride, chief financial analyst at Bankrate.com.
For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Also, join the PF team's weekly Twitter Space, "This Week, Your Wallet," Wednesday at 4 p.m. ET. Click here for a recording of last week's episode. | |
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