Business: Smart money moves before the Fed raises interest rates

The Fed has signaled it could raise interest rates up to four times this year. Hikes often come in quarter-point increments. On $10,000 of debt, four rate hikes could cost you $100 more a year in interest. “When the Fed says it’s going to raise interest rates, it means it’s going to cost us more to borrow money,” explained Colleen McCreary with Credit Karma. Three possible interest rate hikes projected in 2022 to curb skyrocketing inflation

SIGN UP FOR FOX 26 HOUSTON EMAIL ALERTS Hiking interest rates is meant to curb inflation, but it also means you’ll pay more for money that you borrow.

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You have about a month to make some smart moves before it happens. Houston – The Fed has indicated it could raise interest rates for the first time in three years, as soon as March.

MORE SULLIVAN’S SMART SENSE “Calling your credit card company and saying, ‘What can you do for me?’ I’ve been making all of these on-time payments, I’ve been a really good customer,’” suggested McCreary. “If you want to keep me, what can you do to lower my interest rate now?” “Grab one of the 0% balance transfer offers now because, as rates go up, the generosity of those offers isn’t going to be as good, or as plentiful,” said Greg McBride with Bankrate.

You’ll see the change on your variable rate credit cards about two billing cycles after a hike. Try to pay down or transfer as much debt as you can to a lower rate. FOX 26 Consumer Reporter Heather Sullivan has some smart sense on inflation skyrocketing and why the feds could raise interest rates to tackle the inflation surge.

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