Borrowing Money Ain’t What it Used to Be…. 

Over the past few years, many clients chose to borrow more than they ordinarily would borrow for homes, vehicles, etc. because interest rates were so low. Rates are a lot higher now, so I’m sharing a few thoughts on things you should be considering:

• Check any variable interest rates you have. For individuals who have a home equity line of credit (HELOC), your interest rate may be significantly higher than it was a year ago. Keep this in mind as you think about whether to pay it down or especially if you are thinking about adding to it.
• Think about setting aside cash for that big purchase that may be happening in the next few years. Car loans on new cars can be 4% – 5% or more, and loans on used cars are even higher. It may be a good idea to start putting aside cash if you know you need a car within the next few years