Frontwave Blog

How to Manage Debt as Interest Rates Rise

If you have debt, you may be feeling anxious about the prospect of rising interest rates. Higher interest rates mean higher monthly payments and more money wasted on interest. But don’t worry, you are not alone. Many Americans are in the same boat, and there are ways to manage your debt effectively and reduce the impact of rising interest rates. Here are some tips to help you get out of debt even when interest rates go up.

1. Know Your Debt

The first step to crushing your debt is to know what you are dealing with. How much do you owe, what interest rates are you paying, and when are your payments due? You can use our financial calculator to see how much interest you will pay over time and how long it will take you to get out of debt. This will help you prioritize your debt and make a realistic budget.

2. Pay More Than the Minimum

If you can, try to pay more than the minimum amount due on your debt every month. This will help you lower your balance faster and save you money on interest in the long run. You can use the debt snowball method or the debt avalanche method to decide which debt to pay off first. The debt snowball method is where you pay off the smallest debt first, while the debt avalanche method is where you pay off the highest interest-rate debt first. Both methods can help you feel more motivated and confident as you see your debt go down.

3. Refinance Your Debt

Another way to tackle your debt even when interest rates go up is to refinance your debt to a lower interest rate. This can help you lower your monthly payments and save money on interest over time. You can refinance your debt by transferring your credit card balances to a lower-interest-rate card, consolidating your debt into a personal loan, or refinancing your mortgage or auto loan. But before you refinance your debt, make sure you compare the fees and terms of the new loan with your current loan and see if it’s the right fit for you.

4. Get Help From Frontwave

If you need some help with your debt, you can always count on Frontwave. We’ve been serving our members since 1952, and have evolved with the times to offer the best products and services for your financial needs. We offer low interest rate credit cards, personal loans, and financial counseling to help you get out of debt and make your financial dreams come true.

Managing your debt even when interest rates go up can be tough, but it’s not impossible. By following these tips, you can take charge of your debt and reduce the stress and anxiety that comes with it. Remember, Frontwave is here to support you every step of the way. Give us a buzz at 800.736.4500 or swing by a local branch for a free financial checkup!