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Why now is a critical time to pay off credit card debt

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Paying your credit card debt off now could make it easier on your finances, even amid rising inflation. 

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Prices are rising due to inflation, and chances are that you’ve felt the pinch at the pump, the grocery store and just about anywhere else you spend money.

At the same time, interest rates are high. The federal funds rate — which is the interest rate consumer lending and deposit rates are based on — is currently paused at a 23-year high. So, not only are the cost of goods up but so is the cost of borrowing. That’s why, if you’re carrying a balance, you may have noticed higher credit card minimum payments lately. 

In turn, your credit card debt may be a burden right now. After all, higher minimum monthly payments can be tough to afford when the prices of goods and services like gas, food and healthcare are rising. As such, now may be a critical time to pay off your credit card debt.  

Find out how quickly you could pay your debts off with a debt relief service now

Why now is a critical time to pay off credit card debt

There are a few reasons why this is an important time to pay your credit card debt off, including: 

Prices are rising

The average prices of goods and services were up 3.2% in February compared to one year earlier and up 0.4% from January. And while the inflation rate is down from its 9.1% peak in mid-2022, there’s still room for improvement. 

With the ongoing inflation issues impacting the economy, you can expect to pay more for basic goods and services right now. If you’re unable to fit the increasing costs in your budget, eliminating high-interest credit card debt could help. 

Chat with a debt relief expert about your options today

Interest rates may not fall any time soon

As inflation fell from its peak, economists projected that the Fed would cut its benchmark interest rate in early- to mid-2024. But with the recent uptick in inflation, economists now expect rate cuts to start later in 2024. In turn, high rates, and high minimum credit card payments, are likely to remain the norm for the foreseeable future. 

Delaying the payoff costs you more in interest

“Credit card companies charge high interest rates and only require customers to make the minimum monthly payments,” says Justin Leto, co-founder and CEO of Idea Financial. “This allows interest to compound daily, driving up the cost for consumers.”

Because of this, some high amounts of credit card debt can take decades to pay off, resulting in thousands of dollars in interest charges. So, paying off your debt now could lead to significant savings in terms of interest. 

Pay your debts off faster with a debt relief service

More than one-third of American adults owe more money to credit card companies than they have in emergency savings, according to Bankrate. If that’s the case for you, paying off your credit card debt could be difficult. 

But the good news is that there are programs that can help, like debt relief solutions. When you utilize one of these programs, you may be offered one of the following services: 

  • Credit card debt management: Credit card debt management companies help you pay your debts off faster by negotiating better interest rates and terms with your lenders. 
  • Credit card debt forgiveness: Credit card debt forgiveness companies, also called credit card debt settlement companies, negotiate your principal balances on your behalf. This can provide more relief than credit card debt management, but it can also have a detrimental credit score and tax implications.  

The bottom line

This could be the right time to pay off your credit card debt. Between high and rising prices and the high-rate environment, paying your credit cards off now may put you on better financial footing. If you can’t afford to pay your debts off immediately, then consider reaching out to a debt relief service for help



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Former Bolivian President Evo Morales claims his car was fired upon in attempted assassination

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Former President Evo Morales of Bolivia claimed he survived an assassination attempt on Sunday after unidentified men opened fire on his car. He was not injured and there was no immediate confirmation of the attack from authorities.

Morales alleged the shots were fired while he was being driven in Bolivia’s coca leaf-growing region of Chapare, the ex-president’s rural stronghold whose residents have blockaded the country’s main east-west highway for the past two weeks.

The roadblocks — protesting what Morales’ supporters decry as President Luis Arce’s attempts to sabotage his former mentor and bitter political rival — have isolated cities and disrupted food and fuel supplies.

Morales, who led Bolivia from 2006 to 2019, emerged unscathed from the alleged attack Sunday, appearing on his weekly radio show in his usual calm manner to recount what happened.

He told the radio host that as he was leaving home for the radio station, hooded men fired at least 14 shots at his car, wounding his driver.

Morales was quick to blame his successor, President Arce, with whom he is fighting to be the candidate of governing socialist party in next year’s presidential election. He claimed that Arce’s government resorted to physical force having been unable to defeat him politically.

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Former President Evo Morales speaks to supporters after marching to La Paz, Bolivia, to protest current President Luis Arce, Monday, Sept. 23, 2024.

Juan Karita / AP


“Arce is going to go down as the worst president in history,” Morales said. “Shooting a former president is the last straw.”

Officials in Arce’s government did not respond to requests for comment on the incident.

Cellphone video circulating online shows Morales’ driver bleeding from the back of his head. Morales can be seen in the passenger’s seat holding a phone to his ear as the vehicle swerves and a woman’s voice shrieks “Duck!”

The footage shows the car’s front windshield cracked by at least three bullets and its rear windshield shattered. Morales can be heard saying, “Papacho has been shot in the head,” apparently referring to his driver.

“They are shooting at us,” Morales continues on the phone. “They shot the tire of the car and it stopped on the road.”

Morales’ claim deepens political tensions in Bolivia at a volatile moment for the cash-strapped Andean nation of 12 million.

In June, there was an apparent attempted coup by a rogue military general leading a rebellion, where armored vehicles and troops marched to the presidential palace and tried to force their way into the building. The rebellion retreated after Arce confronted the general, bringing the alleged coup attempt to a head, and ordered him to stand down. The general and other senior officers were later arrested.


Apparent military coup fails in Bolivia

04:28

Then, last month, Morales led a massive march against the government’s mismanagement of the economy that quickly devolved into street clashes with pro-government mobs. Imported goods are scarce and prices are rising. Drivers wait for hours to fill up at gas stations. The gap between the official and black-market exchange rates is widening.

Earlier this month, the feud between Morales and Arce moved to the courts as Bolivian prosecutors launched an investigation into accusations that Morales fathered a child with a 15-year-old girl in 2016, classifying their relationship as statutory rape.

Morales has dismissed the allegations as politically motivated and refused to testify in the case. Since reports surfaced of a possible arrest warrant against him, the ex-president has been holed up in the Chapare region, in central Bolivia, where supportive coca growers have kept vigilant watch to protect him from arrest.

President Arce accuses Morales of trying to undermine his administration to advance his own ambitions.



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Open: This is “Face the Nation with Margaret Brennan,” Oct. 27, 2024

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Open: This is “Face the Nation with Margaret Brennan,” Oct. 27, 2024 – CBS News


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This week on “Face the Nation with Margaret Brennan,” Republican vice presidential candidate JD Vance discusses Russian disinformation campaigns and the Trump-Vance ticket’s “women problem.” Plus, former Republican Rep. Liz Cheney joins.

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Full interview: GOP vice presidential candidate Sen. JD Vance

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Full interview: GOP vice presidential candidate Sen. JD Vance – CBS News


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Watch Margaret Brennan’s full interview with Republican vice presidential candidate Sen. JD Vance of Ohio, a portion of which aired on “Face the Nation with Margaret Brennan” on Oct. 27, 2024.

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