<\/span><\/p>\n<\/div>\n\u201cWith interest rates coming down, the idea is just pay and save as much as you can right now and have that consumption party\u201d later, Veldkamp said. \u201cThat\u2019s the sort of timing play here.\u201d<\/p>\n
Credit card balances are typically most consumers\u2019 highest-rate debt. While the ratio between U.S. households\u2019 average debt and income remains historically low, credit card delinquency rates have been rising, and those behind on payments face larger balances, Philadelphia Fed researchers said last month.<\/p>\n
\u201cMake all your payments on time\u201d if you\u2019re able to, Veldkamp advised. \u201cBe really diligent about it, so that when it comes time to borrow, one looks like a good candidate and can get a good rate.\u201d<\/p>\n
Simply asking about discounts and special promotions \u2014 from utility bills to prescription costs \u2014 can yield surprising results, and credit card rates are no different, Hamrick said: Pick up the phone and see what your card issuer can do.<\/p>\n
There\u2019s no bad time to do that, but when the central bank lowers interest rates, it can be even more valuable. That\u2019s especially true if your credit card has a variable APR, because not all lenders will quickly or automatically lower it after a Fed cut.<\/p>\n
\u201cNot to say they do it on purpose, but maybe they forget to reset your rate down,\u201d Lake said. \u201cMake sure that you hold those people accountable.\u201d<\/p>\n
It might seem counterintuitive to buy stock in the wake of this week\u2019s rout, but many financial advisers live by the \u201cbuy low, sell high\u201d mantra. If your experience as an investor is nonexistent or limited to your employer\u2019s 401(k), consider opening an investment account and start small, Veldkamp suggested.<\/p>\n
\u201cYou don\u2019t have to be a millionaire to have a stock portfolio. Find a simple platform with low fees and buy some things,\u201d she said. For an inexperienced investor without plans to retire any time soon, the key is patience. Over the long term, \u201cif the market crashes, it will rebound,\u201d she said.<\/p>\n
Fluctuations often motivate investors to take matters into their own hands, but Veldkamp said few tend to outsmart the market.<\/p>\n
\u201cIt\u2019s tempting to say, \u2018Well, when interest rates go down, stocks are going to do well, because people are switching from low-return to higher-return assets,\u2019\u201d she said. \u201cThat all may be true, but the fact is that there\u2019s somebody whose job it is to trade on that idea immediately. The second a word exits the mouth of a Federal Reserve official, they are there ready to execute that trade in milliseconds.\u201d<\/p>\n
Instead, experts advise keeping a steady, long-haul approach.<\/p>\n
\u201cIf you\u2019re investing in your retirement, for example, you should be really focused on what the next five, 10 and 20 years look like. You\u2019re investing for those periods,\u201d Lake said.<\/p>\n
With 30-year fixed-rate <\/strong>mortgage rates plunging this week to an average of 6.55%, refinancing demand has surged 16%, according to the Mortgage Bankers Association.<\/p>\n\n
If you\u2019re buying a house and getting into a mortgage, check to see if rates fall can you adjust that mortgage rate.<\/p>\n
Jude Boudreaux, Financial Planner, New Orleans<\/span><\/p>\n<\/div>\nWhile a Fed interest rate cut would drive mortgage rates lower still, now\u2019s a great time for existing homeowners and prospective ones to scope out their refinancing options, Veldkamp said: \u201cDig up those details, do your homework, read the fine print and figure out what\u2019s that refinancing cost.\u201d<\/p>\n
Jude Boudreaux, a New Orleans-based financial planner, pointed out that most closings take 30 to 60 days, so it\u2019s worth looking ahead even if you\u2019re still in the middle of a sale process.<\/p>\n
\u201cIf you\u2019re buying a house and getting into a mortgage, check to see if rates fall can you adjust that mortgage rate,\u201d Boudreaux said. \u201cAs you\u2019re shopping for a loan, that becomes something to consider.\u201d<\/p>\n
However, Lake warned against looking only at interest rates to time a home purchase, particularly because homebuying demand could jump after a rate cut.<\/p>\n
\u201cPeople should really focus on their individual needs and desires and what they can afford,\u201d he said. \u201cAs soon as rates go down, people have more borrowing capacity, so they get pretty quickly reflected in the real estate prices.\u201d<\/p>\n
The bad news: \u201cIt is doubtful that auto rates will rapidly decline as soon as the Fed starts cutting,\u201d Jonathan Smoke, Cox Automotive\u2019s chief economist, wrote following the Fed\u2019s decision last month to hold rates steady.<\/p>\n
The average rate for new vehicles in July was 9.72%, up more than 0.5% year over year but down from 10% in June, Cox said. And the average monthly auto loan payment was $727, said J.D. Power, $5 more than in July 2023.<\/p>\n
The good news: Consumers should find plenty of deals in the discounting that typically picks up in August and September as dealers clear lots for new models, Boudreaux said.<\/p>\n
Hybrid sales are finally slowing after a springtime surge, according to the auto data firm Edmunds, which means better prices are also likely to be around the corner. And in the secondhand market, one- and two-year-old <\/strong>used car values are down nearly $4,000 from last year.<\/p>\n\u201cIf you\u2019re shopping for a new car deal, it might actually be on the other side of the lot,\u201d said Ivan Drury, director of insights at Edmunds.<\/p>\n
Delaying that trip to the dealership can be costly, Hamrick said, especially when it means spending more on Uber rides or missing work because of a lack of wheels. So focus on what you can afford and \u201cbulletproof\u201d your budget for maintenance, repairs and fuel. Chances are that auto purchase will still be net-positive on your wallet.<\/p>\n
Hamrick also suggested considering leasing options, even if that means signing a contract before a rate cut. \u201cMaybe you need to trade down on the price point,\u201d he said.<\/p>\n<\/p>\n
This post appeared first on NBC NEWS<\/div>\n","protected":false},"excerpt":{"rendered":"
The Federal Reserve is gearing up to cut interest rates as soon as next month, which could bring relief to people with mortgages, credit cards and car loans. But it could be a bumpy ride until then. A weaker-than-expected jobs report Friday triggered a sell-off on Wall Street this week from which markets are struggling […]<\/p>\n","protected":false},"author":0,"featured_media":7673,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=7672"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/7673"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=7672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=7672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=7672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}