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3 big reasons to pursue credit card debt forgiveness this August
Right now, the average American is carrying about $7,950 in credit card debt. And, while this type of high-rate debt is never ideal, it can be even more of an issue in today’s economic environment. After all, credit card rates have been climbing recently, and if your balances aren’t paid off each month, the interest charges can accumulate quickly. That, in turn, can result in high minimum payments that are difficult to maintain.
That isn’t the only troubling credit card statistic worth noting right now, either. In addition to today’s high average card balances, recent reports show that maxed-out card accounts and delinquent credit card payments are also on the rise, signaling that many people are struggling to manage what they owe in today’s economy.
If you’re one of them, the good news is that there are debt relief options, like credit card debt forgiveness, that can help you get rid of your credit card debt. With credit card debt forgiveness, the goal is to settle your outstanding credit card balances for a portion of what you owe. And, this debt relief option may be a good one to consider this August, in particular.
Start comparing your debt relief options online today.
3 big reasons to pursue credit card debt forgiveness this August
Here are a few big reasons you may want to pursue credit card debt forgiveness this August:
The high-rate environment
In today’s high-rate environment, the average credit card rate currently hovers near 22%. In turn, the interest charges that accrue on the balances you carry can make it increasingly difficult to pay down what you owe.
For example, if you’re carrying a credit card balance of $6,500 and have a 22% APR and only make minimum payments (interest plus 1% of the balance) each month, it would take about 307 months to pay off the debt. And, you would pay an additional $11,276.54 in interest over that time.
So, with rates as high as they are right now, it’s important to get rid of your credit card debt as soon as possible. Otherwise, you could end up paying a lot more in interest than you owed on your original balance.
Find out how the right debt relief company could help you now.
Ongoing inflation pressures
While inflation has cooled from its recent peaks, it’s not under control just yet. At 3%, the current inflation rate remains above the Federal Reserve’s 2% target. And, as the cost of essentials like food, housing and fuel continue to rise, many Americans find themselves with less money to put toward debt repayment.
That’s where credit card debt forgiveness can help. By settling your debts for less than what you owe, you may be able to free up resources to cope with today’s rising costs while still addressing your outstanding debts.
Debt reduction potential
When you pursue debt forgiveness, the goal is to get your creditors to accept a lump-sum payment to settle the debt for less than what you owe. If successful, this process can result in substantial savings, allowing you to become debt-free much faster than you otherwise would be.
For example, some debt settlement companies report that they can reduce debts by 50% or more. While results can vary widely, even a 30% reduction on a $7,500 balance would mean savings of about $2,250. This can make the difference between a manageable debt repayment plan and years of financial struggle.
The bottom line
While there are many debt relief options to consider this August, credit card debt forgiveness could be particularly compelling if you’re grappling with overwhelming debt. After all, this option can lead to significant savings and expedite the repayment process overall, so it may be worth pursuing if you’re unable to pay off what you owe on your own.
That said, there are lots of debt relief options to consider, and in some cases, it could make more sense to pursue debt consolidation or enroll in a debt management program instead. So, make sure you understand what choices are available to you and weigh the potential pros and cons of each option before making any decisions.
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How some Nevada voters see the affordable housing crisis
Las Vegas — For nearly a year now, 32-year-old renter Mason Cunha and his realtor have been struggling to find the right home in Las Vegas at the right price.
What’s keeping Cunha from purchasing a home?
“It just doesn’t really make sense right now to buy a home with the interest rates where they are, and with the inventory what it is,” Cunha said.
Vice President Kamala Harris has said that if she wins the general election in November, she plans to work with the private sector to build three million new homes and rental units.
Cunha, a Harris supporter, is in favor of the proposal.
“I think it’s going to definitely help, if you were to double or triple or quadruple the inventory,” Cunha said.
Harris is also proposing outlawing price fixing by corporate landlords and giving first-time homebuyers who have paid their rent on time for two years with up to $25,000 in down payment assistance.
“I would want to review what the qualifications are for that,” said 32-year-old Andrew Lum of Las Vegas, a wedding DJ and married father. “Where is that $25,000 coming from?”
Lum sold his home when his family expanded. He now rents a bigger house but he can’t afford to buy. Lum says his life was better when former President Donald Trump was in office.
“In 2020 we were able to buy a home,” Lum said. “We were able to buy it at an interest rate that was possible. We were able to buy it with, you know, minimal down payments.”
Trump’s plan involves reducing mortgage rates by slashing inflation. Trump has also said he would open limited portions of federal lands to allow for new home construction, a plan the Biden administration is already enacting. As an example, one such 20-acre plot in Las Vegas was recently transferred from the federal government to Clark County, and now it has been designated for affordable housing.
According to the Congressional Research Service, 80.1% of the land in Nevada is owned by the federal government.
Trump has also said that that his promised mass deportations will make more housing available. It is an argument that both Lum and Cunha don’t seem to agree with.
“It just seems a little farfetched to me that all the houses are being purchased by immigrants,” Lum said.
“I think everything that Trump says has to be taken with a really aggressive grain of salt because he is known to inflate the truth,” Cunha said.
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