GREENVILLE, N.C. (WNCT) — Before you head out to do some Christmas shopping this year, experts are offering some tips on how to manage money in the presence of inflation.

Dr. Nicholas Rupp, the interim chair of the department of economics at East Carolina University, said the federal interest rate has increased by 5%. He added that if you receive a loan this year, it will cost more to finance than the previous year.

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“They need to be aware that if they’re going to use loans to pay for purchases that the interest rates will be higher on their credit cards. and so they’ll be paying more or taking more payments to pay off any money that they borrow,” said Rupp.

Rupp also said the most common mistake he sees people make is overspending on holiday shopping. It’s important to not to overextend your spending because of the higher interest rates.