The Federal Reserve is meeting for the first time this year on Jan. 27 and 28, but the odds for a rate cut this month are minimal. After December’s job report showed both slower job growth and a decline in the unemployment rate, Barclays and Goldman Sachs pushed their predictions for a cut to the second half of 2026.
Fortunately, you don’t need to wait for a change to the federal funds rate to take control of your finances.
“I always try to help my clients build something that works no matter what the Fed does,” Don Grant, a CFP at Sabre Wealth, told CNBC Select. “The bottom line is the importance of planning — having a financial life that isn’t based on what the Fed might or might not do, but one that’s designed to weather the storm.”
No matter what happens with interest rates, these financial strategies will always pay off.
Regardless of whether the Fed raises or lowers its benchmark rate, paying off high-interest debt is always a smart move. Credit card bills are a big culprit, and interest rates are already so high that a small decrease won’t make much difference.
One common strategy for tackling credit card debt is a balance transfer card with an introductory 0% APR period. This will stop the clock and give you months to pay down your bill without accruing additional interest. It’s only a wise move if you have a plan to pay the full balance by the end of the intro period — otherwise, you’ll be hit with another hefty APR.
The Citi Simplicity® Card lets you pay off your debt interest-free for 21 months, before switching to a 17.49% – 28.24% variable APR.
Receive a 0% Intro APR for 21 months on balance transfers and for 12 months on purchases from date of account opening.
Good to Excellent670–850
See rates and fees. Terms apply. Read our Citi Simplicity® Card review.
Information about the Citi Simplicity® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Our expert take
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
Pros & cons
- One of the longest intro-APR offers for balance transfers
- No annual fee
- No rewards
- No welcome bonus
More detailsBalance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Foreign transaction feeSpotlight
New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers.
Good to Excellent670–850
Our expert take
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
Pros & cons
- Valuable welcome bonus and high rewards rates
- Long intro APR for purchases and balance transfers
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% – 27.74%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
3% of each transaction in U.S. dollars
If you have several high-interest balances or need more time to pay down your debt, you may be better off with a debt consolidation loan. Instead of paying multiple creditors, you’ll have one monthly payment, ideally with a fixed lower rate.
Achieve accepts borrowers with bad credit (a FICO Score of 620 or less) and approves loans ranging from $5,000 to $50,000 and terms from two to five years. The digital personal finance company can send funds directly to your creditors and often offers a rate discount if you choose this option. Achieve also has a debt relief program, with agents who will negotiate with creditors to accept less than the full balance.
- Annual Percentage Rate (APR)
- Loan purpose
Debt consolidation, major purchase
- Loan amounts
- Terms
- Credit needed
- Origination fee
- Early payoff penalty
- Late fee
Pros
- Flexible term lengths
- Rate discounts available
- Works with borrowers with fair credit
Cons
- Loans may not be available in all states
- The lender charges origination fees
When the Fed lowers its benchmark rate, the return on savings accounts usually declines, as well.
But if you have your money in a high-yield savings account, you’ll still be earning an above-average return. The best HYSAs have APYs hovering around 4.2%, which is more than ten times the national average savings rate.
You can easily find a savings account with zero monthly fees and no minimum balance requirement.
Compare savings accounts3. Lock in fixed rates
In an uncertain economy, it’s easier to budget if you have predictability in what you owe. So, if you need to borrow or are looking to refinance, opting for a fixed-rate loan over a variable-rate loan means one less unknown.
No matter what happens with interest rates, that loan payment will stay the same.
Even if it means being locked into a slightly higher rate, it’ll give you peace of mind. In a year, rates could go back up and you’ll be happy you chose a fixed-rate loan that’s less vulnerable to fluctuations.
Looking to refinance your car loan? These offers include fixed APRs
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At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Don Grant, a CFP at Sabre Wealth.
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.