Double Digits? Be Prepared for Rate Increases

4. Save as much as you can: Some may advise that you should spend your money when interest rates are rising, because a dollar today will be worth more than a dollar tomorrow. This advice is based on the assumption that inflation will continue and interest rates will remain high for a long period of time. If interest rates follow the 1980s scenario, however, they will remain in double-digit territory only for a short period of time -- something Greenspan predicts this time around.

5. Think long-term: If rates hit double digits, you'll want to lock your money into long-term investments that will pay you high rates of return for years to come. Don't overlook CDs. When interest rates are high, CDs will also be paying a high rate. The longest CD term at your local bank is usually 10 years, but brokered CDs can have terms that last up to 20 years. Make sure to read the fine print to ensure they do not come with a call feature.

Start planning now. If double-digit interest rates are on the horizon, there will likely be a lot of panic, doomsday talk and conjecture. It will seem that there is no end in sight. By preparing early and realizing high interest rates will likely be a short-term occurrence, you will be better positioned to weather the storm.