As an emergency response, the Federal Reserve recently dropped interest rates to zero and also increased the amount of short-term loans it offers banks to keep cash flowing smoothly. What this means for you is that your savings account interest rates will drop, but interest rates on credit cards or other personal debt could also be affected, which could give you some options in managing outstanding debt. Castro said: "Call your credit card company to negotiate a lower interest rate, especially if you have a strong history with the company. If you have a fixed interest rate on your mortgage, personal loan, or student loan, then you won't see a change in your rate. You would have to take out a new loan or refinance to see a lower rate."
Of course, refinancing is more complicated than swapping one loan for another. Do your research and consult with a professional to understand the options and make sure you make the right decisions for your money.
