With rising interest rates and high inflation, money experts are explaining to consumers what to hold off on purchasing right now. The cost of borrowing money to refinance something such as a car or home is way more expensive than it was in the past.

Here’s a list of those large purchases to hold off on for now.

A new car

Jim Droske, president of credit counseling company Illinois Credit Services, tells us he needs a newer vehicle but is holding off still given the higher interest rates to finance a new auto loan, plus the fact that the current auto market makes it difficult for consumers to land a good deal.
“Even though I would get a higher trade-in value for my car, the math just makes sense to hold off on purchasing a vehicle until the supply and demand economics shift to be more in favor of me, the consumer,” Droske says.

Home upgrades and new construction
Along with wanting to upgrade a car, Harrison and his wife were also planning several home upgrades, including customizing a closet, screening in their back porch and upgrading several bathroom lighting fixtures. But that was prior to inflation and now with labor and materials costing so much more, they’ve decided to hold off.
“While we would never put off any needed repairs, we’ve pressed pause on any home projects we don’t have to take on,” Harrison says.

Loans with variable interest rates
As opposed to fixed interest rates, variable rates indicate that the interest rate you pay can go up or down at any time. Rates generally fluctuate in accordance with the federal funds rate, so in a rising rate environment, would-be borrowers typically tend to delay any variable-rate financing since it’s likely to soon become more expensive to carry that debt.
Harrison’s case is just one example of that. “As a business owner, there are periods where the investments I need to grow my revenue — new staff and tech upgrades, etc. — are more than I can cashflow,” he says. For this reason, he typically would look to business lines of credit and other variable-interest debt whose payments allow him to purchase what he needs and make small monthly payments until revenue increases.

Read more at CNBC.