Why you should consider debt relief this September
After suffering through the worst inflation in more than 40 years, Americans are finally starting to see some relief. Inflation cooled in July for the fourth consecutive month, moving closer to the Federal Reserve's target 2% goal (it's now 2.9%). Accordingly, the federal funds rate, frozen at its highest point in more than two decades, is expected to be cut when the Fed meets again in September. And while that rate doesn't directly dictate what lenders offer borrowers, a reduction there can lead to reduced rates for a wide range of products.
But knowing that relief is pending doesn't do much for those who have maxed out their credit cards and are already in delinquency. For these borrowers, and millions of others, aggressive actions may need to be taken now to help regain their financial health. Fortunately, debt relief services, which offer everything from credit card debt forgiveness to debt consolidation loans, can help. But how do you know if it's time to consider this option? Below, we'll break down three reasons why you should consider it this September.
Learn how the right debt relief option can help you here.
Why you should consider debt relief this September
Not sure if a debt relief service is right for you now? Here are three reasons why it may be:
Relief will be marginal to start
If the Federal Reserve does issue its first interest rate cut of 2024 when they meet again on September 17 and September 18, the reduction is likely to be marginal to start. While some are expecting a half a percentage point drop, others are expecting just a 25 basis points reduction. And since lenders don't directly mimic the Fed's actions and because some have already "priced in" predicted rate cuts to come, the result in what you pay to borrow money will likely only be modestly adjusted. It will only be after months of reductions and other economic actions that you will see major changes.
So don't expect any significant relief to come in September. Use the time instead to start exploring your potential debt relief options.
The process takes time
Debt relief can help borrowers of all types but it's not an overnight fix. It will take time, diligence and strict adherence to the strategy you ultimately choose. Credit card debt forgiveness, for example, can average two to four years and you still won't get all of your debt forgiven (just a portion of it). Other types of relief may be shorter but none are likely to have a dramatic, quick effect.
So, if you know you need help don't delay any further. Even the best-constructed plan won't make a major dent in what you owe in September, but it's better than waiting until October or November to begin.
You can't afford to pay any more
If you've already tried cutting as many expenses as possible and have limited your lifestyle to make ends meet but still can't afford to pay any more toward your debt, it may be time to relent and pursue a debt relief option this September. Admitting that your debts have gotten out of control is the first step toward regaining your financial freedom. And with varied options ranging from forgiveness to debt consolidation and, in extreme circumstances, bankruptcy, you have multiple paths forward.
Just don't sit still. Between what you currently owe and any additional fees and penalties tacked on top, the longer you wait the more debt you'll have to sort through with a debt relief provider (and the more you'll damage your credit score).
The bottom line
If you're one of the millions of American borrowers struggling with high-interest debt, know that you're not alone. And understand that you have solutions to explore. This September is a great time to do just that. Since economic relief, when it comes, will be marginal to start and because the process takes time to materialize, it makes sense for many borrowers to get working now. And if you can't afford to pay any more toward your current debt, it makes sense to reach out to a debt relief servicer who can work with you. By making these steps now you can, at a minimum, get the process started in September and begin restoring your financial health in the weeks and months that follow.
