Related Articles
Are you finding it difficult to financially cope with the rising prices of consumer goods and services? Are you using your credit cards to cover the cost of everyday purchases and making minimum payments to keep those cards active? Doing so can result in ever-growing credit card balances and minimum payments. And, those growing minimum payments will only exacerbate your financial hardship.
But, there are options for managing your credit card debt. Credit card debt forgivenessis one to know.
Credit card debt forgivenessservicers can help reduce what you owe by negotiating with your lenders in an attempt to get them to forgive a meaningful portion of your balance – helping you get back on solid financial footing. And, if you’re struggling to make your minimum payments, it could be a good idea to enroll in a credit card debt forgiveness program this May.
Find out how much relief credit card debt forgiveness can provide today.
Why you should consider credit card debt forgiveness this May
“In today’s environment, it may be difficult for some to balance their increased cost of living with obligations,” explains John Jones, investment advisor representative at the wealth management firm, Heritage Financial. “Debt forgiveness may be an option one could entertain in an effort to reduce financial burdens, avoid bankruptcy and protect assets.” Find three reasons you should consider credit card debt forgiveness this May below.
Interest rates may not fall soon
The federal funds rate is the highestits been in decades and it doesn’t look to be coming down anytime soon. And, financial institutions and lenders often base the interest rates they offer on the federal funds rate. That means you may be dealing with higher credit card interest rates than you’re used to, resulting in higher minimum payments.
The Federal Reserve increased its benchmark rate in an effort to combat inflation, but the impact of those higher rates on inflation seems to have stalled. And, Jerome Powell, chairman of the Federal Reserve, pointed out that he’s not sure when inflation will cool and the Fed will cut rates.
“We said today that we didn’t see progress [on inflation] in the first quarter, and I’ve said that it appears then it’ll take longer for us to reach that point,” Powell said following the recent Federal Open Market Committee (FOMC) meeting, noting that inflation remains well ahead of the Fed’s 2% goal. “I don’t know how long it’ll take.”
But what we do know is that the Fed isn’t likely to cut the federal funds rate, and therefore consumer interest rates aren’t likely to fall, until inflation falls closer to the Fed’s 2% goal. So, if you want relief from high credit card interest and payments, a credit card debt forgiveness program could help this May.
Get in touch with a debt forgiveness service now to make your credit card debt more affordable.
Inflation could be making your financial hardship worse
Inflation is at the center of today’s high interest rates, but it’s causing another financial issue for those struggling with credit card debt. As inflation continues to push the prices of consumer goods and services up, those higher prices are straining many budgets across the country.
And, if you don’t have the money you need to cover the cost of daily living in addition to your credit card minimum payments, you may be making your credit card payments and using your credit cards to purchase goods and services. But, this spending pattern only leads to higher credit card balances – and higher minimum payments. And, at some point, your available credit may run dry, only adding to your financial hardship.
However, if you enroll in a credit card debt forgiveness program today, you may qualify for lower payments that make it easier to withstand the inflationary pressures.
Credit card debt forgiveness may help you avoid bankruptcy
Following the spending pattern above, the one in which you make minimum payments on your credit cards and use your available credit to purchase goods, can lead to bankruptcy. After all, your available credit will dry up at some point and you’ll have to find another way to cover the cost of day-to-day life. If you can’t afford your minimum payments on your credit cards at this point, bankruptcy may become a reality.
But, it doesn’t have to.
Credit card debt forgiveness could be the alternative to bankruptcy you’re looking for. These programs may shave off a meaningful portion of your credit card balances, making payments more manageable and rising daily expenses easier to absorb.
The bottom line
If you’re struggling with high credit card balances, interest rates and minimum payments, this May is the time to make a change. After all, inflation continues and interest rates aren’t likely to fall in the near term. But, credit card debt forgiveness can help. These programs may be able to significantly reduce your balances and minimum payments, giving you the financial breathing room you need to avoid bankruptcy. Reach out to a credit card debt forgiveness service now if you’re having a hard time making ends meet.
Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids and two dogs.
