Credit card interest climbs due to Fed rate hike, tips to save money as holidays approach

CHICAGO (WLS) -- There was a third interest rate hike Wednesday, the Federal Reserve raised rates by .75 %.

Local financial experts at the SIS financial group said you may want to start turning to cash, especially when you start thinking about holiday shopping.

Cash allows you to avoid interest on credit cards, which is now at a high of almost 20% for new cards and about 15% for existing accounts. Add to that the fees you could face if you have a late payment.

Using cash can also protect your credit score if you have trouble paying your cards on time.

Experts say using cash for gifts also helps you set a better budget. Once there is no more cash, there are not more gifts to be purchased.