The Federal Reserve has raised the interest rate by 0.25%, signaling a potential shift into a rising rate economy. While this suggests an improving U.S. economy, it prompts consumers to consider various financial aspects.
Debt Consolidation
Explore consolidating high-rate loans into lower-rate ones, aiding in debt management and potential faster repayment.
Credit Card Debt
Transfer high-interest credit card balances to lower-interest cards or loans, with First Commonwealth offering low-interest credit cards and no transfer fees.
Homeownership
Homeowners with adjustable-rate mortgages or home equity lines of credit should review terms, as rising rates may impact payments. Understand the potential effects on your budget.
Homebuying
In a rising-rate environment, monitor mortgage rates closely and consider getting pre-approved for a mortgage with a rate lock to secure favorable terms. Savings and
Investments
Anticipate potential increases in interest rates for savings accounts and certificates, benefiting earnings. While advantageous for fixed-income individuals, significant income advantages may take time.
Amid these changes, it's crucial not to panic. The Federal Reserve will exercise caution in rate adjustments. Assess your current finances and future goals, and consider keeping variable-rate debt based on your short-term and long-term objectives. As your credit union, we are here to assist you. Contact us or visit a financial center for guidance.