3 final financial moves you need to make in 2023

At this point, many of us are busy making New Year’s Eve plans (unless you’re like me and know those plans consist of sitting on the couch at 9:30 p.m. and falling asleep somewhere at the ballpark).

But 2023 isn’t over yet, and there are still a few more weeks left before 2024 begins. While you’re waiting for the ball to drop, you may want to take the opportunity to cover these important financial moves.

1. Check your credit score

The cost of borrowing has risen significantly in 2023 due to the Federal Reserve’s numerous interest rate hikes. But if inflation continues to cool, the Fed may cut interest rates in 2024, making the new year a better time to borrow.

If you’re planning on taking out a loan in 2024, whether it’s buying a car or fixing up a house, you’ll want to go in with solid credit. Now is a good time to check your credit score and see what the numbers look like.

Many credit card companies and banks provide this information to consumers, so check your credit score before it’s too late. If you’re not happy with your numbers, you’ll know you need to work on improving them. That way, when you go to apply for a loan in the new year, you won’t be shocked when you get stuck with exorbitant interest rates or even get rejected.

2. Consolidate costly debt

Do you have multiple high-interest credit card balances? you are not alone. According to TransUnion, U.S. credit card balances reached $995 billion as of the third quarter of this year.

But the biggest reason credit card debt can be so tricky to pay off is because the interest continues to pile up day after day, effectively trapping you in a frustrating cycle. To get out of this, consider consolidating your credit card debt into a mortgage or personal loan.

While it is true that lending rates have risen today, the advantage of a home equity loan or personal loan is that you can lock in a fixed interest rate on your debt. result? Predictable monthly payments. And the interest rate you’re seeing on one of these loans is likely still significantly lower than the rate your credit card is charging you.

3. Secure a CD when interest rates are high

The Fed interest rates we talked about earlier? Not all of them are bad for consumers. One positive thing is that savings account rates and CD rates have risen this year due to the Federal Reserve’s actions. So another move to consider before the end of the year is to open a certificate of deposit (CD) while interest rates are still attractive. If the Federal Reserve cuts interest rates in 2024, CDs will tend to start paying less.

And if you’re worried about tying up your money for years, rest assured that it’s not your only option. Short-term CDs are paying a lot of money now, so if you can keep your money safe for only 6 to 12 months, they’re fine. In fact, I recently released a 10-month CD because that period was perfect for me.

Many people are ready to say goodbye to 2023. But before the year officially comes to a close, consider adding these actions to your must-do list.

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