1022. If you were expecting interest rates to drop, rising inflation is making it more likely for them to go up this year. Laura reviews six moves you shouldn’t overlook in a rising-rate environment to make your money work harder for you.

Key takeaways

• When inflation rises, the Fed raises interest rates to slow down spending and demand, eventually causing prices to decrease so spending increases.
• With sticky inflation and the expectation of rate hikes, borrowers need to watch interest rates on their debt, using a tool like my PFS.
• When variable-rate debts, such as credit cards, increase, it’s wise to pay them off faster and reduce the interest expense.
• If you’re considering a large purchase, like a home or vehicle, maintaining good credit and locking in a lower interest rate sooner rather than later are wise strategies.
• Higher interest rates benefit savers, so using a high-yield savings account can maximize your earnings.

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