What to do as interest rates rise

What's the scoop?

The Federal Reserve, the country's central bank, just raised the federal funds rate for the fourth time this year (yes, you read that right) in hopes of taming skyrocketing inflation. This time, the hike was a whopping three-quarters of a percentage point — that's a big deal for the economy and potentially even your finances.

What does it mean for you?

"When the Fed raises rates, it's going to get more expensive for folks to get mortgages, credit cards and auto loans, which is bad news for consumers," says Matt Schulz, LendingTree's chief credit analyst. "However, it also means folks are likely to start earning more from their savings accounts. That's good news for savers."

Here's what to do.

Our experts at LendingTree have an action plan for you:

Pay down your credit cards. The average interest rate on new credit card offers is nearly 21%. Beef up your credit card payments — and consider a 0% interest balance transfer credit card or a debt consolidation loan to help you save on interest.

Lock in your mortgage rate. If you already have a fixed-rate mortgage, there's no need to stress — your rate won't go up. But if you're shopping for a mortgage, try to get an offer with a rate lock in case rates climb even higher.

Get paid to save. The good news is that your savings will get a boost with these rate hikes. Make sure you're taking advantage by shopping around for a high-yield savings account that works in your best interest — pun intended.