Answer: Predicting future inflation is pretty tough and depends on a number of factors. Right now, for example, many used-car models are fetching significantly higher prices than in the past because of the sharp decline in sales of new models during the recession (leading to fewer available used cars now) and the fact that many owners are hanging on to their cars longer to save money. The production slowdown in Japan after its recent disasters is also affecting used-car prices.

Since predicting inflation is tough, you’d be smarter to focus on the factors you can more easily control: your savings and the condition of your current car. With proper maintenance, today’s vehicles can notch well over 200,000 miles. Owning a car for 10 years or more gives you plenty of time to save up cash to buy your next vehicle.

photo credit: Qiao-Da-Ye賽門譙大爺

If you’ve got variable rate debt, now is the time to look into fixing your rate.

I wrote this week about the risks of inflation and how prices and interest rates could soar as the economy picks up.

Of course, interest rates are already soaring for many credit card holders. The average credit card rate rose to over 15%, hitting a two-year high, according to IndexCreditCards.com. Even people with good credit scores and on-time payment histories are getting slapped with higher rates, as issuers try to beat the February deadline for the implementation of the credit card reform act.

Here’s what to do:

Mortgages. If you have an adjustable-rate mortgage and don’t plan to move before the rate resets, look into refinancing to a fixed rate if you have some equity in the home. If you don’t have equity, you may be eligible for refinancing under the government’s Making Home Affordable Plan. GET HELP if you go this route–talk to a HUD-approved housing counselor. You can find one HERE.

Credit cards. If you have credit card debt, consider it variable-rate debt, since there’s no such thing as truly fixed rates in the credit card world. Consider getting a three-year, fixed-rate credit union loan to pay off your balances. Interest rates for people with good credit currently average just under 10% for these loans, according to the Credit Union National Association. (If you don’t belong to a credit union, you can find one HERE.) Other options for 3-year, fixed-rate loans are social lending sites such as Prosper and Lending Club. Rates vary according to your credit scores and investor bids but loan rates currently range from 7% to 26%. (Can’t pay off your debt in three years? Then you may be in more trouble than you think. Consider talking to a legitimate credit counselor and a bankruptcy attorney to get a more complete idea of your options.)

HELOCs. Home equity lines of credit are a tougher call. The rates on this type of debt are typically very low and not as subject to the whims of lenders as credit card debt. If you have a home equity line of credit and you’re concerned about being able to pay it when rates rise, however, you could consider a fixed-rate home equity loan or even refinancing your primary mortgage to incorporate the debt and fix the rate.

You also should have a plan for paying off your debt. Read “A debt payoff plan that works” for more.