Here are your best money moves after Fed’s major interest rate hikes

1. Credit cards

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Since most credit cards have a variable rate, as opposed to a locked-in fixed rate, t.’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does, as well, and your annual percentage rate could rise within just a billing cycle or two.

Average credit card rates are currently just over 17%, significantly higher than nearly every other consumer loan, and they may go as high as 19% by the end of the year — which would be an all-time high, according to Ted Rossman, a senior industry analyst at

“T.’s a lot that we can’t control, such as high inflation and rising interest rates, but t. are steps that you can take to reduce your debt load and the interest rate you’re paying,” he said.

Pro tip: The best thing to do is pay down debt before larger interest payments drag you down.

If you’re carrying a balance, switch to 0% intro APR credit card, Rossman advised. “You can still get up to 21 months with no interest on some balance transfers,” he said, such as the Wells Fargo Reflect, Citi Simplicity or Citi Diamond Preferred.

“They all have transfer fees, but I think that’s well worth it,” Rossman said. “That ability to avoid interest for almost two years is huge.”

Otherwise, consolidate and pay off high-interest credit cards with a lower interest home equity loan or personal loan.

“If you have good credit, you might be able to get 6% over five years,” noted Rossman.

Another option is to take a loan from your 401(k), although that can put your retirement savings at risk. Still, it can be worth it for some if they have a high credit card balance and rates keep rising.

2. Mortgage rates

3. Auto loans

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Most car loans have fixed rates, so existing borrowers shouldn’t be impacted by rising rates, Rossman said.

Auto loans tend to track the 5-year Treasury rates, he added, which are influenced more by investor expectations than the Fed’s rate hikes.

“With recession worries looming, t.’s a good chance that most of the run-up in car loan rates is behind us,” Rossman said.

Pro tip: Even if auto loan rates aren’t at historic highs, t.’s no question inflation has hit vehicle prices hard. Experts say now might not be the best time to buy a new car, while some may want to consider a used car to save on costs.

When it comes to auto loans, “the best thing consumers can do to save money is to get their own financing before ever stepping foot into a car dealership,” said Erin Witte, director of consumer protection at the Consumer Federation of America.

To pad their profits, car dealerships sometimes mark up their interest rate above what a lender has agreed to accept, Witte said.

“Arranging your own financing can save you money by taking the secret markup out of the equation,” she said.

4. Student loans

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