With inflation at its highest level in 40 years, the Federal Reserve is expected to announce another interest rate hike at the end of the month.
If you were planning to buy a new home, should you do it before rates go up? What if you had to modernize your car? And is it good to pay off your credit card completely or should you keep a small balance to boost your credit score?
Financial columnist Terry Savage says the sensible thing to do during these times is to save as much as you can and if you can, it’s good to earn some extra money.
“If you can take advantage of the labor shortage right now and maybe work to earn some extra money to have a savings cushion or pay off your debts, it’s the right decision to take,” Savage says.
High interest rates also mean that buying a home might be more difficult for some, but for first-time home buyers, this might be a good time to take that step.
“If you know you’re going to have a job, and if you have enough money to make a down payment, there are great first-time homebuyer programs out there, now would be a good time to lock in the purchase of a home. ‘a house,’ said Sauvage.
With the possibility of a recession looming, Savage says the best thing to do is be prepared.
“Prepare now while you can. Get a job, earn some extra money, pay off your debt, because it looks like we should have six to eight months or even a year of tough times ahead,” advises Savage. .