Rate Cut Saves Debtors Money

Today, the Fed was nice enough to drop interest rates 25 basis points.

What it means for me?

1. Credit Cars – no credit card debt = no savings
2. HELOC – the rate floats with the LIBOR. As this is my biggest floating rate exposure, any savings could be significant.
3. Unsubsidized Student Loans – the rate cut should save me a few bucks; however, I hope to have it paid off by December, 2008.
4. Savings Accounts – I will get less interest from my ING Direct and my money market mutual funds. Basically, the losses will offset the gains on the student loans.

In the grand scheme of things, it won’t change my life. Once the student loans are paid off, I am redirecting the payment to the HELOC.