In the past three years, Americans have increased the amount of credit card debt we have by 33 percent, according to the Federal Reserve. Mortgage debt is up 50 percent! If your income has gone up $1, that means the amount of debt you’re carrying has gone up $2. We’re not dumb. So why did we feel comfortable taking on such enormous amounts of debt? Interest rates have fallen to the lowest level they had in decades, and they’ve stayed low. So, the way we look at borrowing money has changed. But we’re moving into a period of change and we need to shift our course drastically. Almost all credit cards have floating rates, but those rates are moving back up now that interest rates are rising. The same is true of home equity loans and mortgages in general. Rates are on the rise. People have also been doing lots of “cash out refinances.” This is when you get money back when taking out a mortgage. People took out $100 billion alone, according to stats compiled by the New York Times. So, as time marches forward, it’s time for you to get ship shape with finances. You may want to consider switching to a fixed rate whenever you can, but particularly on your mortgage. You’ll be paying a little more, but you’ll have a set rate and you’ll be able to handle your finances better.