Interest rates can have a huge effect on your finances, especially if you have a lot of debt. Here's some important info that could help you manage your money more successfully.
1. Credit Cards - When the FED raises rates, expect to pay more. it's best to pay off your credit card debt or switch to a lower rate card.
2. Home equity line of credit - You can use your home equity line of credit if you can pay off the amount you borrow in three years. If you can't pay off the amount in three years, get a fixed rate home equity loan.
3. Mortgages - If you have an adjustable rate mortgage (ARM), you may pay more as the rates go up. Financial advisors recommend an adjustable rate loan with a five or seven year fixed period.
4. Bonds - When rates go up, generally the yields on most bonds go up. For your protection, invest in funds that hold Treasury and high quality corporate bonds.