How can you cash in on interst rate drop?

By: Michelle Carolla | SCNow
Published: March 18, 2008

The Federal Reserve reduced interest rates Tuesday by three-quarters of a percentage point. That’s eight cuts since September. So far, the cuts have not translated into better economic news for consumers. In fact, the news seems to get worse. The nation's unemployment rate is 4.8 percent. That’s not very high, but it’s not just a number. It translates to nearly eight million people who can't get a job. The falling dollar isn’t helping. The exchange rate is one dollar for 1.5 euros. Gold also hit the $1000 mark last week.

Feeling the effects are the construction, manufacturing and retail markets. The healthcare and food services industries are seeing growth. The housing market continues to crash in double digit loses in many areas of the country. Fortunately, the housing numbers along the Grand Strand aren't as bad, but foreclosures are still happening.

The falling dollar isn’t helping. The exchange rate is one dollar for 1.5 euros. Gold also hit the $1000 mark last week.

Bill Blackburn, a mortgage lender in Myrtle Beach said nationally, 233,000 foreclosures were filed in January alone. That’s up 8-percent from December.

On the credit cards front, so many cash-strapped people are turning to credit cards to make ends meet.

Industry analysts report the problem is the government is cutting rates for banks, but banks aren't necessarily passing that down to consumers.

So, is there anything you can do to capitalize on the rate cuts? Msn.com reports a few ways you can cash in on the rate cute.

-Refinance to a fixed-rate mortgage. It's tough to get a loan unless your credit score is 680-700 minimum. But do a little investigating.

-If you can, find a willing lender and cash in on your home equity. You can pay down high interest credit cards and save on interest.

-Shop for lower interest rate cards. There’s a guide below that compares all the major credit cards.

-As hard as it may be, save your money. Rates on CD's are about 5 percent right now. So investing now could lock you into a higher rate before

Stay with News 13 and scnow.com. We're going to help you navigate through these tough economic times. From planning your summer vacation and not canceling it to protecting your nest egg.

I'd also like to hear from you. E-mail me your questions on the economy and I'll do my best to get you answers.

Money Exchange Rates

http://www.x-rates.com

Bureau of Labor Statistics

http://www.bls.gov/news.release/empsit.nr0.htm

Compare Credit Cards

http://moneycentral.msn.com/banking/services/creditcard.asp