Here’s how a Fed rate cut could affect you. Borrowing costs: what changes fastDig deeper:When the Fed cuts rates, the biggest and quickest effects show up in revolving debt and short-term loans. Banks tend to trim deposit rates quickly after the Fed cuts, affecting high-yield savings accounts, money markets, and CDs. (Photo by Anna Moneymaker/Getty Images)InvestmentsStocks often cheer rate cuts at first, since borrowing becomes cheaper and consumer spending can increase. Paying down variable-rate debt like credit cards and HELOCs remains a priority, since even small rate cuts will not erase high balances.