Should you consider debt relief this October?
With a new month quickly approaching and economic concerns at the forefront for millions of Americans, some may be contemplating new ways to improve their financial situation. While interest rates were cut earlier this September by the Federal Reserve (their first cut in four years), they're still elevated compared to where they had been in recent years. Combined with enduring economic pain remaining from recently high inflation and concerns over unemployment, many may find themselves in a tight financial position right now, bringing in less money each month than they owe on their debts.
Against this backdrop, some adults may be considering the help a qualified debt relief provider can offer. But is your situation drastic enough to warrant such assistance or are you better served by waiting it out and exploring alternatives? Below, we'll break down three reasons why you may want to consider debt relief this October.
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Should you consider debt relief this October?
Here are three things to consider if you're hesitant about enlisting the services of a debt relief provider now:
Rate cuts may not be enough
Sure, interest rate cuts are a step in the right direction. But they're only a step and a marginal one at that. With credit card interest rates, for example, hovering around 23% currently, a record high, rate cuts in the amount of half a percentage point or lower aren't likely to make a dent in your monthly payments. And considering that credit card interest rates are affected by a complex list of factors, in which the federal funds rate is just one, you may not even seen your credit card interest rate move at all right now. Instead, it would take months, if not years, of a consistently cooling federal funds rate to affect your credit card rates. But that could be too long to wait.
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Your interest is already compounding
The average American has around $8,000 in credit card debt now. And that debt is compounding each day with double-digit interest rates, on average. If you're one of those adults with that median amount of debt (or more), be realistic about your ability to afford more interest. If you don't have a clear, actionable way to do so, you may be best served by looking into a debt consolidation loan or debt management program with a debt relief provider now, even before October 1 comes around.
Relief won't be quick
Whether you're contemplating debt relief help now or the not-too-distant future, it's critical to remember that relief won't be quick. Depending on the type you pursue, it could take months if not multiple years to get your financial health back. Credit card debt forgiveness, for example, could take anywhere between two to four years. And you won't even get all of your credit card debt forgiven in that time (a 50% negotiated settlement is typical). A debt consolidation loan via a debt relief company will also take time to coordinate and even longer to improve your financial position. So don't delay.
The bottom line
If you're stuck in debt with no obvious ways to get out of it, consider using this October as the starting point toward regaining your financial freedom. Remember that interest rate cuts may not offer enough substantial relief quickly enough, particularly as your interest compounds daily. Plus, even the most robust debt relief type and provider won't be able to work miracles. Instead, it will be a slow, steady and perhaps frustrating road toward getting out of debt. So don't wait any longer to get to work.
