PriyaPatelTLDR: If your New Year’s resolution is to boost your savings and be better with your finances, here are some simple strategies you need based on the economic outlook for 2024. Interest rates have gone up at the fastest pace in 40 years, but we do expect a little bit of a turnaround in 2024. So, here’s what that means for your wallet and some money strategies you should employ this year.
– Interest rates are expected to ease off in 2024, which means better deals for consumers.
– Shop around for lower interest rates on credit card balances and consider balance transfer offers.
– Consider refinancing auto or home loans, but still prioritize paying down high-cost debt.
– Improve your credit worthiness by paying bills on time and checking your credit reports for mistakes.
– Take advantage of expected lower rates by locking in a Certificate of Deposit (CD).
If your New Year’s resolution is to boost your savings and be better with your finances, here are some simple strategies you need based on the economic outlook for 2024. Interest rates have gone up at the fastest pace in 40 years, but we do expect a little bit of a turnaround in 2024. So, here’s what that means for your wallet and some money strategies you should employ this year.
One strategy for taking advantage of the expected easing of interest rates is to shop around for lower rates on credit card balances. Websites like Bankrate.com offer companies that provide 0% balance transfers, some of which last up to 21 months. Utilizing these promotional periods is important for paying off debt and avoiding carrying a balance into the future.
Another consideration is refinancing auto or home loans. While rates are still high, it might make sense for some individuals to take advantage of lower rates and potentially save money on their monthly payments. However, it’s important to continue prioritizing paying down high-cost debt such as credit card debt or home equity lines of credit.
Improving credit worthiness is another important step to take in the new year. Paying bills on time is crucial, as it accounts for more than a third of an individual’s credit score. Making a lump sum payment on a revolving credit balance can also give a credit score a boost. Additionally, checking credit reports for mistakes and getting them corrected can provide a substantial boost to a credit score in a short period of time. Individuals can check their credit score for free three times a year at AnnualCreditReport.com.
Finally, with rates expected to go down, it’s a good time to consider locking in a Certificate of Deposit (CD). CDs provide a guaranteed return on investment and can be a safe way to earn interest on savings. It’s important to research different CD options and find one with a competitive interest rate.
In conclusion, there are several simple strategies individuals can employ in the new year to boost their finances. By taking advantage of expected lower interest rates, shopping around for better deals, paying down high-cost debt, improving credit worthiness, and considering different savings options such as CDs, individuals can take control of their finances and work towards their financial goals.
