Nicholas: "Pay debt as soon as possible with interest hike" - FOX34 Lubbock

Nicholas: "Pay debt as soon as possible with interest hike"

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LUBBOCK, Texas -

The Federal Reserve has raised interest rates by a quarter point, the fourth increase this year. Financial adviser Jeffrey Nicholas says it could be pretty significant in a number of ways. 

"Consumer loans can increase, mortgage rates can increase, the interest you're paying on credit cards could increase. It seems like a small movement just a quarter of a point, but it's like if you're a pilot and the plane gets off by just a quarter of a degree we may not end up in Hawaii, but we may end up in the middle of the ocean right where we don't want to be," Nicholas said. 

Nicholas advises to finalize your mortgage as soon as possible. 

"While rates have come up some they are still relatively low. It's a good idea to get that locked in to a 15, 20, or 30 year rate so when you tie yourself to that mortgage as the feds change interest rates," Nicholas said. 

With the rate fluctuations this year, Nicholas says to pay off any debt when you can. 

"Look at your budget. Look at your debt and decide how much cash you can allocate towards getting rid of the debt sooner. You know you will pay debt sooner, but getting it gone sooner means you will pay less interest over time."

Nicholas also advises to pay close attention to disclosures for loans and credit cards, and to keep an eye on what your future payments are. 

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