5 Ways to Take Advantage of Lower Interest Rates
Brenton Harrison, CFP?, CLU?, CSLP
Investopedia Top 100 Advisor | Host of New Money New Problems Podcast | Financial Advisor at New Money New Problems
If you’ve been keeping up with the news, you’ve seen that the Fed recently lowered interest rates. And most people … have no clue what that means.
I won’t answer that question in this email, because I did so on this week’s podcast.
But I WILL tell you a small part of how this could impact your finances … but of course, we share the full details in the episode as well.
Are you getting the hint? LISTEN TO THE PODCAST
Here are 5 ways you can take advantage of the Fed lowering interest rates:
1. ? ? ? Credit card debt: you can use tools like personal loans, whose rates are already lower, don’t impact credit utilization, and will likely decrease as well, to pay off credit card debt at a lower rate.
2. ?Home Equity Lines of Credit: While rates are low, keep your HELOC payment the same as it was at higher rates so you’re eating into the principal of what you owe.
3. ?Mortgage rates: For hopeful buyers, now might be the time to check rates with multiple carriers and ask if you can buy down the interest rate to decrease it even further. And if you already own and can save half a percent or more, it might be worth looking into a refinance.
4. ?Private student loans: you can refinance an existing private student loan as frequently as you want without adding anything to your balance. And if you have federal student loans you plan to pay off, check to see if a private loan refinance could be beneficial.
5. ?Savings and CDs: I’m not a big fan of CDs, but if you plan to use one, sign up now and lock in your rates, and make sure it isn’t callable, meaning the issuer can rescind the CD at their discretion. And if you’re looking for a high yield savings account, see if you can find one that offers you a high rate for a minimum period of time
So those are 5 quick tips, but if you want to hear more details …. well, you know what to do!
This Week’s Episode
5 Ways to Take Advantage of Lower Interest Rates| NEW MONEY NEW PROBLEMS PODCAST
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THE 100th EPISODE! + My 5 Biggest Money Mistakes | NEW MONEY NEW PROBLEMS PODCAST
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