As a Consumer, What to Do About Rising Interest Rates

Interest is the cost associated with holding debt. Interest rates are rising.

As a Consumer, What to Do About Rising Interest Rates

Interest is the cost associated with holding debt. Interest rates are rising. What causes the interest rates to rise is somewhat complicated. We will save that for another day. The bottom line is that rates are going up and you might want to take action.

Credit Cards

To inflict he most damage on consumers and make the most money, credit card companies switched their fixed interest rate credit cards to variable rates. That means as interest rates go up, so will your credit card interest rates or the cost of your credit card debt. That is not good news considering that credit card companies have allowed over 1 trillion dollars worth of debt to accumulate for consumers with their liberal high interest rate borrowing. So, now is the time to take advantage of balance transfer offers to 0%. This will buy you some time. I do have one caveat. Make sure that you read the fine print in the credit card agreement which is different then the fine print page that they offer you. Make sure you know and have a good understanding of how that new credit card works. You don't want to get into a 0% balance transfer and realize that it is worse on the other side of the offer.

Auto Loans

Obviously, auto loans are fixed rate interest rate loans. Are you paying too much? Have you considered refinancing? Check your interest rate against the ones at the Pentagon Federal Credit Union or www.penfed.org. You might be able to save quite a bit of money. You can refinance a new 2 to 3 year old car for as low as 2.49%.

Mortgage Rates

The only advice I have is to pick your mortgage consultant very carefully. Today it is more critical than ever to have a good mortgage consultant guiding you on the refinance side or the new home buy side. We only recommend Mark Pfeiffer at www.mortgagemark.com. It is critical that you get good advice from a consultant's point of view versus a salesperson.

The key to surviving rising interest rates is making sure you are doing everything possible to lower your rates. I would be evaluating it at least one or two times a year!

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