CBS News
Credit card debt forgiveness could make sense this October. Here’s why.
Getty Images/iStockphoto
Last week’s surprising 50 basis point rate cut by the Federal Reserve was good news for borrowers, as the larger-than-expected reduction is likely to have a positive impact on the interest rates offered by lenders. And that, in turn, could make borrowing more affordable in the months ahead. For example, homebuyers or those considering refinancing their mortgages will likely see some relief over time, as will borrowers who want to use personal loans for things like consolidating debt.
But while loans may become cheaper now that the Fed has cut rates, borrowers who are already utilizing short-term loan options, like credit cards, are still facing high interest rates. Right now, credit card interest rates are nearing 23%, a record high. That rate is much steeper than most other forms of consumer credit, which can lead to big financial issues over time.
If you’re carrying a balance on your credit cards, today’s high rates could be costing you a significant amount of money, so you may want to explore options for reducing your credit card debt, including credit card debt forgiveness (also known as debt settlement). With debt forgiveness, the goal is to negotiate with your creditors to pay a lower lump-sum settlement, saving you money on what you owe. And there are a few reasons in particular why it could make sense to consider this strategy in October.
Need help with your credit card debt? Explore your top debt relief options now.
Why credit card debt forgiveness could help this October
There are a few reasons you may want to pursue this type of debt relief now, including:
The recent Fed rate cut may not provide enough relief
While the Federal Reserve’s rate cuts can help reduce the cost of certain types of borrowing, credit card debt works a little differently. Most credit card interest rates are variable, meaning they are influenced by the Fed’s benchmark interest rate, but they don’t always react immediately to changes. In turn, it could take months for any reductions to make their way into lower rates for credit card holders. And, there’s always a chance that card rates won’t come down at all, as credit card issuers are not obligated to lower their rates.
But even if the rate cut results in some relief for credit card users, the decrease would likely be marginal. Considering the average credit card APR is near 23%, even a reduction of 0.5% or 1% might not make much of a dent. So, waiting for relief from the Fed may not be the best strategy, especially if you’re already struggling to keep up with high monthly card payments.
Learn more about credit card debt forgiveness (and your other debt relief options) today.
Credit card interest charges compound quickly
Credit card companies typically charge interest daily, which means that not only are you paying interest on your principal balance, but you’re also being charged interest on any interest that accrued since your last payment. This can cause balances to spiral out of control, especially if you’re only making minimum payments.
Let’s say you have a $10,000 balance on a credit card with a 23% APR and you’re only able to make the minimum payment each month. Due to compounding interest, it could take you over 29 years to pay off that balance, and you could end up paying more than $18,000 in interest over that time. If you’re stuck in this type of cycle, waiting for your APR to potentially drop might not save you enough to avoid serious financial consequences. Looking into debt forgiveness options might provide more immediate relief instead.
Settling your debt could result in big savings
Debt forgiveness can offer a practical solution for those struggling with credit card balances that feel insurmountable. The settlement amounts can vary, but in many cases, pursuing this debt relief option will lower your balance by between 30% and 50%, with the remaining amount being “forgiven” by the credit card company. For example, if you owe $10,000 in credit card debt, a successful settlement might reduce your balance by 50%, meaning you only pay $5,000 on what you owe.
While debt forgiveness will have a short-term impact on your credit score, it can provide quick relief from overwhelming debt and prevent further interest from accruing on your balance. In the long run, it can be a powerful tool to reset your financial situation. So for those already paying high credit card interest, settling your debt can offer savings far greater than waiting for the Fed’s rate cut to impact card rates.
The bottom line
Credit card debt has become a mounting issue for millions of Americans, but while the Fed is working to ease borrowing conditions in other areas of the economy, credit card users may not see immediate relief from the recent or future Fed rate cuts. And given the record-high interest rates and the compounding nature of credit card debt, it could make sense to explore debt settlement this October. Taking action now might result in significant savings and provide much-needed financial relief.
When Huntington Beach, Calif., detectives searched Rodney Alcala‘s Seattle storage locker during the murder investigation of 12-year-old Robin Samsoe in 1979, they discovered a cache of photos, many of them young women in suggestive, and even pornographic poses.
In March 2010, after a third jury in 30 years handed Alcala a death sentence, Huntington Beach police released more than 100 of those photos hoping to identify the women and some children, and learn if Alcala claimed still more victims.
Most of those who have been identified are alive and well.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Huntington Beach Police Dept.
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified people in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified person in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified child in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
An unidentified woman in an image from Rodney Alcala’s photo cache.
Serial Killer’s Secret Photos
Unidentified women in an image from Rodney Alcala’s photo cache.
San Francisco Mayor London Breed conceded the mayoral race to Daniel Lurie Thursday afternoon with a social media post that congratulated her competitor.
The mayor also thanked the city and its residents for “the opportunity to serve the City that raised me” in the post on X just after 4:30 p.m. Thursday.
There had been rumblings that Breed might concede the race earlier Thursday having come in behind Lurie in the last vote count released Wednesday morning.
“Today, I called Daniel Lurie and congratulated him on his victory in this election,” the post read. “Over the coming weeks, my staff and I will work to ensure a smooth transition as he takes on the honor of serving as Mayor of San Francisco. I know we are both committed to improving this City we love.”
Breed spoke at a press conference less than an hour after the social media post to answer questions from reporters about her decision, reiterating some of what she said in her social media post.
“The city is on the rise. The office is bigger than just one person, and I called Daniel Lurie earlier today to congratulate him,” the mayor said. “And made it very clear my team and I stand ready to support him during his transition. We will always do everything we can to ensure the success of the city and that there is a smooth transition, so that the important work that has been done and needs to continue in San Francisco moves forward.”
When asked if this was the hardest speech she’d ever given, Breed quickly dismissed that idea.
“No, it’s not. There’s been other harder speeches. I mean I had to make a hard decision to close the city down during a global pandemic. I had to deal with…the racial reckoning that happened after the tragic death of George Floyd. I had to go out in the middle of the night and tell people that Mayor Ed Lee had passed away. There are numerous occasions.”
Six years ago, incumbent London Breed became the first Black woman to serve as mayor of San Francisco after the death of Mayor Ed Lee in late 2017. The then president of the San Francisco Board of Supervisors was automatically appointed as the city’s acting mayor early the morning after Lee’s death.
In June of 2018, Breed won the special election that was held to fill the office, defeating her main opponent, former state senator Mark Leno.
Breed faced a number of major challenges during her first term in office, including the COVID-19 pandemic, the city’s ongoing issues with drug abuse and homelessness, rising housing costs and a spike in retail crime that some chains cited as the reason behind closing stores in San Francisco.
While Breed has touted progress in reducing the number of homeless encampments and pushed programs to fill vacant business spaces downtown, the mayor’s struggles have led to 11 other candidates entering the race to challenge her for the job.
“Over the coming weeks, I plan to reflect on all the progress we’ve made. But today, I am proud that we have truly accomplished so much and my heart is filled with gratitude,” Breed’s message said in closing. “During my final two months as your Mayor, I will continue to lead this City as I have from Day One – as San Francisco’s biggest champion.”
Daniel Lurie has announced that he will speak to the media about the latest developments Friday morning.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
