Because the U.S. economy has largely recovered from the Great Recession, the Federal Reserve is expected to increase interest rates this year. Interest rates usually rise when people can afford to spend more.
What does that mean for you? While higher interest rates make borrowing more expensive, you can take advantage of higher rates if you’re financially responsible. Here are five ways:
#1: Research, Research, Research
First things first. Before you can take advantage of rate increases, you have to understand how interest rates work. There are many types of interest rates—from simple interest to compound rates.
Knowing the difference between one and the other can save you lots of money.