Interest rates play a major role in personal finance. The higher the interest rate, the more you’ll need to put towards the monthly balance of whatever debt you owe. Higher interest rates also mean paying more for whatever it is you’re purchasing or financing in the first place. Lower interest rates mean paying less on the loan. With higher interest rates, it may be difficult to manage your money each month. You may end up missing payments, which could affect your credit score or lead to high late payment fees. Even if you don’t miss payments, high interest rates combined with debt can make it harder to save or invest money since you have less disposable income each month.