Why you should consider debt relief this April
In an economy still coping with (cooled) but stubborn inflation and the highest interest rates in decades, many Americans may be looking for ways to reduce their debt right now. While this concern can be significant at most times of the year, it's arguably more important to get help right now, before it gets out of hand. Fortunately, debt relief services can help.
These services can take multiple forms ranging from debt consolidation loans (which can gather your debts in one, presumably lower interest rate loan) to debt consolidation programs (which can help minimize payments and interest rates) to debt settlement (which can work toward reducing the total amount you owe). The right type for you will depend on your circumstances - and the time you choose to act. And this April could be one of those times. Below, we'll break down three reasons why you should consider debt relief this April.
Start by reviewing your debt relief options online today.
Why you should consider debt relief this April
Here are three reasons why you should strongly consider debt relief this month.
Your interest rates are still high
The average credit card interest rate hovers over 20% right now while rates on personal loans average around 12%. Those double-digit rates can make getting out of debt on your own difficult, if not impossible. Crunch the numbers with your current credit card debt to see how long it would take you to get your balance to zero by making minimum payments - assuming you don't swipe your card anymore in the interim. It could take decades. With these sorts of interest rates, then, it's understandable why many would want to turn to debt relief services to dig themselves out of debt.
See how a debt relief service could help you here now.
Relief may be delayed
No one knows for sure when the Fed will cut its benchmark interest rate, thus keeping those with debt stuck paying higher rates than usual. While many are hoping for a rate cut as soon as June, one Fed official on Thursday raised the possibility of not issuing any rate cuts at all in 2024. And while the Fed doesn't directly dictate the interest you'll pay on credit cards and personal loans, it is a larger influencer.
"If we continue to see inflation moving sideways, it would make me question whether we needed to do those rate cuts at all," Federal Reserve Bank of Minneapolis President Neel Kashkari said in an interview with Pensions & Investments magazine that aired on LinkedIn. With this possibility in mind, then, borrowers may want to start considering alternative ways to manage their debt this April, before the problem worsens.
Other debts may be more pressing
Your tax return is due in less than two weeks and if you owe back taxes you may have more pressing debts to deal with than just what you owe on credit cards and personal loans. Back taxes owed to the IRS can become problematic and could result in you having your wages garnished or even steeper legal consequences. Knowing that you may have to deal with these issues in just a few days, then, it can make sense to work out a plan for your existing, non-tax debt right now to alleviate at least one issue.
Learn more about your debt relief options online today.
The bottom line
Debt relief services can be helpful at any time but particularly so right now. Thanks to double-digit interest rates on credit cards and personal loans, an unclear expectation for when interest rates will be cut and the potential for also having to deal with tax debt in a few weeks, it could be smart to consider debt relief services this April. By being proactive and exploring all of your options now you can better determine the right path for you and start working toward freedom from debt both this month and in the months and years to come.
