Interest rates are rising, but there are steps you can take to keep your money safe.
As predicted, interest rates are rising due to the unsteady real estate market at the moment. Anyone with a home will be affected by this – which is information that real estate professionals, as well as their clients, should be aware about.
This will undoubtedly make clients nervous to hear, but luckily there are some steps that can be made in order to ensure that everyone’s money remains safe during the interest rate increase.
• Keep some liquid.
This is always a good idea, but is especially good when more expenses are coming your way (such as increased interest rates.) Keeping money in a savings account or short-term CD, at least until the market steadies, may be wise. You will receive increases on these liquid accounts as well – although it may not seem like much, some banks are offering up to 1.75%, which is definitely better than nothing.
• Pay off debts.
With interest rates steadily rising, it is not a good idea to have any debt following you around. If possible, it is a good idea to pay off any credit card debt you may have now, before you are up to your ears in interest rates that need to be paid off. Expanding upon the first point, keeping some money liquid can help in paying off future debts as well.
• Be scarce with spending.
Now is not the time to be making any impulsive decisions (such as buying a home) while the interest rates are still this high. It would be wise to wait until they inevitably lower again before making any hasty decisions. While it may seem counterproductive to advise a potential client to wait before buying a home, it is only fair that they have all the facts before them before they decide to make such a large life decision.