I have been writing about how high Credit card interest rates have climbed with the Fed raising the funds Rate. If you’re not paying off your entire credit card bill each month, you are probably owing a bit more due to the high credit card rate. Credit card debt can be an uphill battle.

If you have student loans that have not had payments due as a result of the pandemic, this may be coming to an end in just a few months as part of the debt ceiling agreement. Regardless of where you stand on student loan forgiveness or forbearance, there are going to be a lot of people potentially in financial trouble.

I suggest pulling out your credit card bills and taking a hard look at how much interest you’re paying each month and what that interest rate is. Every time the Fed has raised the funds rate, the prime rate follows and (most likely) your credit card interest rate.

If you own a home, you may be able to take cash out to restructure your debts. I know nobody wants to tough their low Mortgage rates, but if you’re starting to slide backwards, giving up your mortgage rate may actually help you in the long run…especially if you can refinance before you start to have late payments on your debts. Maybe instead of a refinance, a second mortgage or home equity line of credit can provide enough financial relief.

My main point of this post is to encourage people to not wait too long to take action. If you do own a home and refinancing or a second mortgage is a possible option, having late payments on your credit report will make a new mortgage challenging. The earlier you review your financial situation, the more options you may have.

If I can be of assistance, please let me know.