Sep. 23—As inflation rates remain high, financial experts are providing strategies to combat high prices.
According to the U.S. Inflation Calculator, the inflation rate as of August almost 8.3%, compared to around 8.5% in July.
While rates are high, there are means in place to combat this issue. One of the ways that people can use inflation to their advantage is through an I Bond.
According to the Treasury Direct, an I Bond is "a savings bond that earns interest based on combining a fixed rate and an inflation rate." Currently the interest rate on these bonds is 9.62%.
David Lewis, loan officer at the Nodaway Valley Bank Riverside Branch, said the bond is one of the many ways people can fight inflation.
"It's a very good investment at any time, particularly in an inflationary environment, because the rate of return on that bond will float with the inflation rate," Lewis said.
Lewis said another strategy is paying off credit card debt first.
"Keep it paid off and just try to live within your means … there's always credit card debts, always more expensive than mortgage debt or other other types of loans," Lewis said.
Lewis said that inflation is hurting and devaluing the currency, and the only way to get on top of it is to get the interest rates above the inflation rate. He said this is a difficult process.
"When you raise interest rates, it makes borrowing money obviously more expensive and it raises people's home payments, house payments," Lewis said. "Somebody that's on the bubble as far as being able to qualify for a home purchase will get knocked out of a higher level loan just because they don't have enough income to justify the additional payment."
Riley Funk can be reached at riley.funk@newspressnow.com.
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