The start of a new month is always an opportune time to reflect on what’s been working and adjust what hasn’t. This sort of reflection can take many forms but is particularly helpful when viewed through a financial lens. With inflation persistent – if significantly cooled – and interest rates the highest they’ve been in years, it’s critical to make the best and most well-informed financial decisions possible right now.
Unfortunately for some, that may mean exploring their debt relief options. From debt management to debt consolidation loans to bankruptcy, there’s no shortage of options to choose from. But for those hesitant to do so, it may help to consider some timely reasons why this month may be a smart time to act.
See what debt relief option could work best for you here.
3 big reasons to consider debt relief this June
Here are three reasons why you may want to seriously consider turning to a debt relief service this month:
Inflation is persistent
Hope was high on January 1, 2024, that inflation was heading straight downhill. But the reports that have been released since that point have shown a shakier path, with inflation running hotter than expected in the first few months of the year. In April, the rate barely moved, dropping to 3.4% (from March’s 3.5%). That means prices are still increasing on many goods and services, which can easily result in growing credit card bills and debts. With much work left to get the inflation rate to the Federal Reserve’s target 2% goal, then, borrowers may want to consider their debt relief options now before they add any more to their growing debt pile.
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Rates could be hiked again
Even though inflation has dramatically cooled from its decades-high in June 2022, as demonstrated, it’s still problematic. And if the Fed feels that the current federal funds rate isn’t working to cool it quickly enough, it could raise it again (it’s already at a 23-year high at a range between 5.25% and 5.50%).
While that doesn’t mean lenders will automatically raise the rates they charge borrowers, they almost always do. That means the rates you’re paying on unsecured debt like credit cards and personal loans — and secured options like home equity — will likely rise once again, making them even more difficult to pay down than they already are.
You may not be making progress
Against today’s economic background, you simply may not be making the progress you need to be making to make any dent in your debt. And if you’re making minimum payments on high-interest debts, it could take you years to clear up what you owe — and that’s assuming you don’t add any more debt to cover emergencies or other expenses. If you feel like your progress is limited or not nearly as quick as you need it to be, it could be a sign that debt relief is right for you.
Learn more about your options here.
The bottom line
It’s never too early to tackle the problem of growing debt. But this June is arguably an ideal time to do so. Thanks to a stubbornly elevated inflation rate, the potential for the federal funds rate to increase once again (and, with it, rates on many borrowing products) and a lack of solo progress toward eliminating debt, this month may be the time to enlist the services of a top debt relief company. So start researching your options and services now so that you don’t find yourself in the same position in July.
