3 Last-Minute Financial Moves You Should Make in 2023

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We’re not quite done with 2023. Take the opportunity to make these important adjustments to benefit your finances. 

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

But 2023 isn’t over just yet, and we still have a few more weeks to go before 2024 begins. While we wait for the ball to drop, you may want to take the opportunity to tackle these important financial moves.

1. Check your credit score

Borrowing has been expensive in 2023 on the heels of the Federal Reserve’s numerous interest rate hikes. But the Fed may cut rates in 2024 if inflation continues to cool, making the new year a better time to borrow.

If you’re planning to get a loan in 2024, whether to buy a car or fix up your home, then you’ll want to go in with solid credit. Now’s a good time to check your credit score and see what that number looks like.

Many credit card companies and banks make that information available to consumers, so check your credit score sooner rather than later. If you’re not happy with the number, you’ll know you should work to improve it. That way you won’t be in for a shock when you go to apply for a loan in the new year and get stuck with an exorbitant interest rate — or, worse yet, a rejection.

2. Consolidate costly debt

Carrying a number of high-interest credit card balances? You’re not alone. U.S. credit card balances reached $995 billion as of the third quarter of this year, according to TransUnion.

But a big reason why credit card debt can be so tricky to pay off is that interest continues to build up day by day, effectively trapping you in a seemingly hopeless cycle. To break free, consider consolidating your credit card debt into a home equity or personal loan.

Though it’s true that borrowing rates are elevated today, the upside of a home equity or personal loan is that you get to lock in a fixed interest rate on your debt. The result? Predictable monthly payments. And chances are, the rate you’re looking at on one of these loans will still be considerably lower than what your credit cards are charging you.

3. Lock in a CD while rates are high

Those Fed interest rates we talked about earlier? They haven’t been all bad for consumers. One upside is that savings account and CD rates have risen this year as a result of the Fed’s actions. So one more move to consider before the end of the year is opening a certificate of deposit (CD) while rates are still attractive. If the Fed cuts rates in 2024, CDs are apt to start paying less.

And if you’re worried about having to tie up your money for years, rest assured that’s not your only option. Shorter-term CDs are paying generously right now, so if you’re only comfortable locking your money up for six to 12 months, that’s just fine. In fact, I recently opened a 10-month CD because that’s a time frame that worked for me.

Many people are ready to say goodbye to 2023. But before the year wraps up officially, consider adding these moves to your must-tackle list.

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