As investors assess what's next in the Federal Reserve's rate easing cycle, Claris Financial Advisors founder Lee Baker joins Wealth! Host Brad Smith to discuss what rate cuts mean for your debt and savings.

"Here's what the rate cuts mean from a debt perspective; if we make the assumption that my thesis is right and we get some more rate cuts, people [who] have credit card debt, I think, will benefit more as we move along. [For] most credit cards, you've got floating rates, and those rates are pretty high in recent vintage if you will. But I think they can expect to begin to see those rates trend down," Baker says, noting that rate changes affect mortgage debt differently than consumer debt.

For savers, Baker recommends considering certificates of deposit (CDs). "If you're a saver and you're taking a look and saying, 'Hey, I've got this money, I've enjoyed the fact that I can get this 5% return on my investment,' my encouragement to those folk would be that if you've got some CDs that are expiring soon, or if you're literally sitting on some cash, now is probably a really good time for you to go ahead and lock in those interest rates because I think the era of 4%, 4.5%, 5% interest rates [for savings accounts is] going to fade slowly into the background."

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This post was written by Naomi Buchanan.