Due in large part to the recent pandemic, supply chain shortfalls, and the war in Ukraine, the world economies are seeing inflation at its highest levels in forty years. As a result, many people are struggling to keep up with rising food costs, gas prices, and interest rates. We have no idea how long inflation will stay at these levels, but here are some ways you can cope with higher prices:
Rethink Your Budget
When prices rise as quickly as they have been, it’s a good time to take a deep look at your monthly expenses. There may be savings opportunities by modifying or eliminating expenses. Reviewing your recent bank statements may also reveal expenses that you’ve overlooked or underestimated and can cut back on.
Consolidate High-Interest Debt
Despite rising interest rates, there are still opportunities for savings by consolidating high-interest debt with a secured loan, such as a vehicle or home equity. Compare your vehicle and mortgage loan balances to their current value. If you have equity in either, you may be able to save a lot by using it to consolidate high-interest debt.
Depending on your financial situation, you may want to consider making lifestyle changes to save money. That may be as simple as cancelling subscriptions or taking the bus to work. Or, it could be a bigger change like downsizing your vehicle or home or getting a flexible, part-time job. Lifestyle changes may be the hardest to accomplish, but once you’ve made them your credit union accounts will see the difference.
Capitol View Credit Union