Local Events & Fun At Home

Things to do DECEMBER

Three weekends full of Holiday Magic in Downtown Roanoke this December!

Roanoke City’s Dickens of a Christmas Celebration lasts all December long! On December 2, stop by Market Square to see the city Christmas tree lighting at 5:30 PM. Grab some classic roasted chestnuts and watch the city Christmas Parade on December 9 at 6:30 PM- rain or shine! Then, before jetting off to your family’s holiday plans, stop by the Taubman Museum on December 16 for the Mini Carnival and Pet Costume Contest at 6:30 PM (Register your furry friend by 5:30 PM to participate!). Every night is free to attend and features classic holiday activities such as carriage rides, vendors, street performances and kids games!

Gingerbread Festival

Dec 3 | Longwood Park

Cinderella

Dec 2-4 | Virginia Children’s Theatre

Candy Cane Express

Dec 3 | Virginia Museum of Transportation

Elmwood on Ice

Throughout December Elmwood Park

Jingle Bell Run

Dec 9 | Downtown Roanoke

How to Combat Inflation & Rising Credit Card Rates

It’s pretty safe to say that everyone has felt the effects of inflation at this point. While some inflation is good for the economy, such a dramatic rise in a short period continues to send prices soaring. To stop the climb, the Federal Reserve continues to raise the federal funds rate – a move that further hits consumers’ wallets.

Many people are turning to credit cards to help manage rising prices and make ends meet. Unfortunately, moves by the Federal Reserve are causing credit card rates to spike – giving people a double punch right in the wallet. Rising prices plus rising interest rates can create a costly debt spiral that’s difficult to escape. is through a balance transfer. But before you start transferring money, it’s important to understand why credit card rates are rising.

Understanding Variable-Rate Credit Cards

Nearly all credit cards today have variable interest rates. This means that the interest rate can fluctuate with the economy. Lenders use variable rates as a means to protect themselves from sudden shifts in the financial landscape – like what is happening right now.

Most credit cards are based partly on the Prime Rate. When the Federal Reserve raises the federal funds rate, the Prime Rate typically follows suit. So, what does this mean to you?

When you open a new credit card, the interest rate will often be expressed as Interest Rate + Prime Rate. For example: 12.99% APR + Prime Rate. Most people will focus on the 12.99% APR and assume that’s their rate, but it’s incorrect.

Let’s look at two different time periods as an example of what’s happening.

3/16/2020 Prime Rate = 3.25% Example: 12.99% APR + 3.25% = 16.24%

9/22/2022 Prime Rate = 6.25% Example: 12.99% APR + 6.25% = 19.24%

You can see that the Prime Rate has increased by 3.00% since March 2020. This means most credit card rates are now up 3.00% APR as well. And with the Federal Reserve likely to continue raising rates, credit card purchases will become even more costly.

Using a Balance Transfer Strategically

While you can’t stop prices from rising, you can relieve yourself from excessively high credit card rates. One effective tactic is to use a balance transfer.

A balance transfer allows you to move your current credit card balance from one or more high-interest credit cards to a new credit card, typically with a much lower interest rate. The goals when using a balance transfer are to reduce the amount of interest you pay and make your existing debt easier to manage. Here are several tips to consider when using a balance transfer:

• Find the Lowest Interest Rate: Your priority should be to find the lowest interest rate possible on your new credit card. That might mean forgoing extra perks, such as rewards, and that’s ok. • Identify Hidden Fees: While finding a credit card with zero balance transfer fees is pretty easy, these costs are still common. If you’re taking advantage of a promotional offer, you’ll likely encounter some sort of fee. You want to ensure the balance transfer fee doesn’t set you back even more. Remember, your goal is to reduce your debt, not add to it. • Create a Plan: Once you perform your balance transfer, you want to create a plan to pay off your outstanding debt. If you’re using a promotional offer, you want to ensure your debt is repaid before the promotional period ends. Even when money is tight, it’s wise to chip away at your balance whenever possible. • Limit Future Spending: When prices continue to rise, it’s hard not to rely on your credit cards.

But you never know what the economy will look like six months down the road. Interest rates will likely be even higher, and prices might follow suit. It’s better to view your credit card right now as more of a backup for emergencies than for everyday spending.

*Credit card approval depends on applicant’s creditworthiness and other qualifications. APR (Annual Percentage Rate), terms, and conditions are subject to change at any time. APR is based on the applicant’s creditworthiness and will vary with the market based on the Prime Rate. Earn 3 Rewards points per $1 spent on Amazon.com™ from 10/1/2022 (or the date on which you activate your Rewards Credit Card, whichever is later) through 12/31/2022. 4.99% APR applies only to purchases made on Amazon.comTM charged to your Freedom First Platinum Visa credit card between 11/1/2022 and 12/31/2022 and will continue at this promotional rate until the principal on those charges are paid. All other charges will be at your regular prevailing APR. Amazon.com purchases include those made through the Amazon.com checkout, like digital downloads, Amazon.com gift cards, Amazon Fresh orders, Amazon Local Deals, Amazon Prime subscriptions and items sold by third party merchants through Amazon.com’s marketplace. Also includes in-store at Amazon Go, Amazon Bookstore, and Amazon 4-Star. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by Freedom First Credit Union. Contact Freedom First Credit Union at (540) 389-0244 for additional information on all of our loan products.