Consumer Reports explains how recent interest rate cuts by the Federal Reserve could affect finances

In September, the Federal Reserve announced a quarter-point cut to short-term interest rates, a move that could bring small changes to some financial statements. If you carry a balance on your credit cards, you might notice a slightly lower interest rate.However, Ted Rossman, a senior industry analyst with Bankrate, said the difference may not be obvious on your monthly bill.”If you have the average debt load, which is more than $6,000, if you’re making minimum payments, that monthly minimum payment changes by $1 a month,” Rossman said. “Credit card rates are so high that honestly, even if that rate fell two or three points, which could take years, it would still be high-cost debt.”Consumer Reports said you could save money on interest by working with a credit union, bank, or finance counselor to create a plan and pay off debt with a personal loan. If you’re tempted by a cut-rate balance transfer offer, watch for fees and check what your rate will increase to once the introductory period ends. >> Download the free WMUR app to get updates on the go: Apple | Google Play <<Federal student loans, car loans, personal loans, and most mortgages have fixed interest rates, meaning they won’t change unless you refinance. The rate cut could benefit new borrowers planning to take out loans. Those shopping for a car, expect a marginally lower rate. “It’s not going to be a huge difference. Like if the average new car loan goes from 7.2 to 7%, I mean, you’re only saving a few bucks a month,” Rossman said.After a Fed rate cut, the interest rate on savings accounts usually dip as well, but that’s not always the case, thanks to stiff competition among banks.”Right now, we are seeing some competition for deposits, which is a good thing for consumers,” Rossman said.The top savings rates, often offered by online banks, are about 4.3 %It’s important for both borrowers and savers to do their research and shop around. Even a small rate change can make a big difference over time.>> Subscribe to WMUR’s YouTube channel <<