With interest rates still on the rise, now is the time to take a good look at your finances. You may find that there are some things that you need to change.

If you have debt that is affected by interest rate, you need to look at where it is going to take you. This is a good time to make an effort to start eliminating your debt.

Interest rates are raised to stimulate savings and slow down borrowing. That is exactly what you should be doing.

First, take a good look at your budget. You may find that a substantial portion of your money is going towards credit card debt. With interest rates on the rise, you will be paying more to your credit cards.

Start with a little financial planning. Make a list of all of your credit cards and other unsecured debt. List each account including the payoff amount, monthly payment amount and interest rate charged.

There are two ways to start paying off your debt. If you need a boost to get you started, start paying off the smallest debts first. This gets you on a roll. It feels really great to mark off each account as it is paid off.

Another way to work to paying off your debt is to make extra payments to your highest interest rate card until it is paid off. Don't ignore your other cards, you must continue to pay them. When the top card is paid off, you add that amount to the payment of the next highest interest rate card. Just go down your list, paying off each debt. This method will save you the most interest money in the long run.

If you have little debt, you should look at using rising interest rates to your advantage. Start saving money now. Even if you only put it in a savings account that earns slight interest, you are earning something on your money -- without having to work for it. Let your money grow. You would be surprised at how fast it will grow. The more you contribute, the more it grows.

You should definitely have two financial goals for the New Year. First, pay off your debt. It may not seem so important at first, but you'll be amazed at how freeing it is to only owe on your home and one vehicle.

Second, start saving for your future. Knowing you have money to fall back on can really ease a worried mind. Emergency funds take the stress away from car repairs and home maintenance. Don't let time slip away from you, retirement can come in a blink of an eye. If you start saving now, you will be a little more comfortable in your retirement. It's worth it to give up a night out on the town.

Take the end of the year and rising interest rates as a reason to look at your budgeting. There is always room for improvement. There are many people out there bogged down by stress caused by debt and no savings. It isn't necessary, and it is something you can get out of. Financial freedom is something that you have to work hard for, but it is attainable through financial planning and keeping both eyes on the future.