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Why you should consider credit card debt forgiveness before June

A credit card debt forgiveness program could reduce your monthly credit card expense and the total amount of money you owe.  Getty Images/iStockphoto

Have you heard about credit card debt forgiveness? These programs work with your lenders to cut your credit card balances in an attempt to offer you relief from overwhelming debt. And, if you owe $7,500 or more in credit card debt and you're having a hard time making your payments, you may be a strong candidate for forgiveness

If that's the case for you, you may want to act quickly. After all, overwhelming credit card debt doesn't typically get rid of itself and the longer you stay in debt, the more money it will cost you. In fact, there are multiple timely reasons why it may be wise to enroll in a debt forgiveness program before June. 

Find out how much relief a credit card debt forgiveness program can provide now

Why you should consider credit card debt forgiveness before June

Here are three reasons why you should consider a credit card debt forgiveness program before June:

Interest rates could rise

April's inflation data showed that price growth had cooled when compared to March. April's inflation rate was 3.4%, down from the 3.5% inflation rate in March. But, April still saw price growth at a much faster rate than the Federal Reserve would like to see. That could pose a problem for those who are already having a hard time making their credit card minimum payments. 

That's because the Federal Reserve's response to high inflation is typically to increase its federal funds rate. That may be bad news for borrowers as any hikes to the federal funds rate could result in higher interest rates and minimum payments on credit cards and other lending products. But, if you start your credit card debt forgiveness journey now, you may be able to avoid any potentially higher interest rates and payments in the future. 

Avoid future rate hikes and growing credit card payments with credit card debt forgiveness today

The increasing cost of living may continue

Inflation doesn't just have an impact on the monthly cost of your credit card debt, it plays a role in the cost of goods and services too. So, while high inflation may push the cost of credit card debt up in the future, it has already increased the cost of living - a trend that may continue. 

That means your credit card debt may become even more challenging to deal with if you don't do something to address it now. After all, rising prices for things like food, gas, shelter and more will only make it more difficult to make your credit card payments on time. 

"As cost of living and inflation continues to impact Americans, a debt forgiveness program can help," explains Dawn-Marie Joseph, founder of the financial planning firm, Estate Planning & Preservation. After all, these programs may help reduce your monthly payments and the total amount of money you owe to credit card companies. "These are good programs for someone who has difficulty keeping up with high payments, is being hit with high fees, and has several credit cards with revolving debt."

Your financial hardship could result in bankruptcy if left unchecked

If you're dealing with financial hardship, that hardship may only get worse if you leave it unchecked. With prices continually rising and high interest rates pushing credit card minimum payments up, it may only get harder to make ends meet. And, that could eventually result in bankruptcy. 

On the other hand, if you enroll in a debt forgiveness program now, you could realize a meaningful reduction in the amount of money you need to pay toward your credit card debt each month. In turn, lower monthly payments could mean you have more money in your budget to address the higher cost of goods and services, potentially helping you avert bankruptcy

The bottom line

As the cost of living rises and high interest rates and minimum payments weigh on those with credit card debt, credit card debt forgiveness is becoming an attractive option for many. These programs have the potential to cut the cost of your debt, making it easier to absorb increasing costs elsewhere. And, considering the potential for a rate hike in the future, it may be wise to enroll in one of these programs as soon as possible. Chat with an expert about your options now

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