The Federal Reserve is starting the process of raising interest rates and people naturally wonder how the interest rate change affects you. Whether you are a borrower or a saver, the change in this year’s rate will affect you a little differently this year for two reasons. The first is that people are carrying a lot of debts with floating rates. Secondly, the amount of debt we’re carrying is huge compared to a few years ago. According to the Chicago Tribune, people in the bankruptcy business are all bracing for a disaster because of the amount of debt people are carrying. In 1990, Americans had $200 billion in credit, according to the Web site economy.com. Today, we carry almost $800 billion in debt. Our economy hasn’t quadrupled in size, but our debt has. If you are carrying a card with a floating rate, you need to start paying down that debt as soon as possible. Your goal should be to reduce the amount of floating debt you carry, starting with your credit cards. Either cut up the cards or put them in a bag of water in the freezer so you can’t use them right when you want to. Then, come up with a budget. Also, if you’re in a floating rate mortgage, it’s a good time to switch to a fixed rate especially if you are planning to be there for a while.