3 big reasons to consider debt relief in June

The start of a new month is always an opportune time to reflect on what worked and adjust what didn’t. This type of thinking can take many forms, but is particularly useful when viewed from a financial perspective. With inflation persistent – ​​if considerably cooled – and interest rate highest in years, it is essential to make the best and most informed financial decisions possible now.

Unfortunately for some, this may involve exploring their debt relief options. From debt management has debt consolidation loans has bankruptcy, there is no shortage of options. But for those who are hesitant to do so, it may be helpful to think about some timely reasons why this month might be an opportune time to take action.

Find out which debt relief option might be best for you here.

3 big reasons to consider debt relief in June

Here are three reasons why you may want to seriously consider turning to a debt relief service this month:

Inflation is persistent

On January 1, 2024, hopes were high that inflation was heading straight down. But reports released since then have shown a more volatile trajectory, with inflation higher than expected in the first months of the year. In April, the rate barely moved, falling to 3.4% (compared to The 3.5% of March). This means that the prices of many goods and services continue to rise, which can easily lead to increased bills and credit card debt. With much work to be done to bring the inflation rate to the Federal Reserve’s 2% target, borrowers may want to consider their debt relief options now before adding more to their debt increasing.

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Rates could be increased again

Although inflation has slowed considerably since its highest level in decades in June 2022, as demonstrated, this remains problematic. And if the Fed believes that the current federal funds rate cannot calm it down quickly enough, it could raise it again (it is already at its highest level in 23 years, in a range between 5.25% and 5.50%).

While this doesn’t mean lenders will automatically increase the rates they charge borrowers, they almost always do. This means the rates you pay on unsecured debts like credit card and personal loans – and secured options like home equity – will likely increase again, making them even more difficult to repay than they already are.

You may not be making progress

In today’s economy, you may simply not be making the progress you need to reduce your debt. And if you do minimum payments On high-interest debt, it could take you years to pay off what you owe — and that’s assuming you don’t add additional debt to cover emergencies or other expenses. If you feel like your progress is limited or not as fast as you would like, it could be a sign that debt relief is right for you.

Learn more about your options here.

The essential

It’s never too early to tackle the problem of growing debt. But this month of June is undoubtedly the ideal time to do it. Thanks to a stubbornly high inflation rate, the possibility of another hike in the federal funds rate (and, with it, the rates of many borrowing products), and the lack of solo progress toward debt elimination, this month could be the time to enlist the services of a major debt relief company. So start researching your options and services now so you don’t find yourself in the same situation come July.