Taking Advantage of This Low Interest Rate Environment

by in Saving Money

One good thing that has come from this terrible economy is interest rates at record lows. This allows us to actually have choices for managing our money. There are many options out there for consumers to save, spend, and invest. It is very important to choose the strategies that best suit your financial circumstances.

Here are a few ways you can take advantage of a low interest rate environment:

Consolidate your debt. Unfortunately, most of us do have a debt. With interest rates at historic lows, it makes sense to consolidate debt into one low-interest loan. If you qualify (which in this housing market it may be difficult), it may be a good time to apply for a home equity line of credit to consolidate debt or make a home improvement.

Look for low interest rate credit cards. Check the rates of the credit cards you currently have, and see if you can transfer your existing high interest rate debt to a lower interest rate card. You can also ask your current credit card issuer to lower your interest rate to make it more competitive. They can only say no and you are no worse off for asking!

Make larger purchases now. If you've been thinking of making a major purchase like a house or a car, today's low interest rates make it a good time to finance big-ticket items. However, a good credit score is a must, and you must be able to afford your big purchase!

Know your credit score. Make sure your score is higher than about 680 to qualify for the very best rates. If your score is lower than that, pay down your balances, remove errors from your credit report, and pay bills on time to raise your score. It is also important to make sure you see a copy of your credit report each year to make sure it is accurate.

Keep saving. Even though savings rates are very low right now, having a savings account is a good thing. Your savings will still accrue, you'll be less likely to spend it, and you know it will be safe. Longer-term Certificates of Deposit (CDs) pay the highest interest rates if you can tie up your money for a longer period of time.

There are many opportunities and challenges for deciding how to manage your money. This is a great time to consolidate debt, to make payments easier, or make a home improvement!

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About the Author - Lisa Martin

Lisa Martin is a full time work at home blogger and a social media consultant. Her blogs cover a wide variety of topics including travel, cooking, product reviews, and what is going on in her daily life. She has been interviewed by the Chicago Sun Times, The New York Times, and The SouthTown Star. You can read Lisa’s blog at My Thoughts, Ideas, and Ramblings.

 

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