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Can’t make your credit card payments? Consider this instead
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If you have credit cards that you carry a balance on from month to month, you’re not alone. Credit card debt is a common issue in the United States, and card balances are on the rise, according to the Federal Reserve.
Unfortunately, today’s high interest rate environment can make it difficult to make your minimum payments. After all, credit cards typically have variable rates, and the minimum payments you make are meant to primarily address interest. So, with rates rising over the past couple of years, your credit card minimum payments likely followed.
But what if you can’t afford to make your minimum payments? While you may think your primary option is bankruptcy, there’s another option you may want to consider.
Don’t struggle any longer. Tap into the debt relief you need now.
Can’t make your credit card payments? Consider this instead
If you need a feasible way out of debt, you have options, including debt relief services. Debt relief professionals usually help in one of two ways:
Debt consolidation (debt management)
Traditional debt consolidation involves taking out a new loan at a lower interest rate to pay off your current debt. However, if you’re struggling to make your minimum payments, you could be hard-pressed to find, and be approved for, an affordable debt consolidation loan.
A debt consolidation or debt management service could provide the relief you need in this case. These services typically ask you questions about your debts, income and expenses and then use that information to attempt to negotiate better rates and terms with your creditors on your behalf.
Once negotiations are complete, you’ll generally stop paying your credit card companies directly and start making a single monthly payment to the debt consolidation service. The company you work with will make individual payments to your creditors on your behalf.
Save time and money with debt consolidation today.
Debt settlement (debt negotiation)
Debt settlement programs are designed to help you settle your debts for less than you owe. As is the case with debt consolidation programs, the process usually starts with a representative who asks you questions about your debt, income and expenses.
The representative will then work with you to create an affordable, yet effective, payment plan. At this point, you’ll usually be instructed to stop making payments to your creditors and make your new payments to the debt settlement company — which will likely store the money in a special-purpose savings account.
Once you’ve saved enough money to settle your debts, the settlement company will negotiate with your lenders on your behalf in an attempt to get them to accept a lower payoff amount. Your creditors aren’t required to accept your settlement offer, but debt settlement companies are often successful in negotiations.
Frequently asked debt relief questions
Find the answers to some of the most common questions about debt relief services below.
How long does debt relief take?
The amount of time it takes you to pay your debts off as part of a debt relief program depends on several factors. For example, your balances, the company you work with and the terms they negotiate on your behalf will play a role in the timeline.
However, Brandon Robinson, president and founder of JBR Associates, recently told CBS News that “if a person is not able to absolve the debt (through settlement or consolidation) within 36 months with lower monthly payments, then filing for bankruptcy may be the best option.”
Does debt relief hurt your credit score?
Whether or not debt relief impacts your credit score — and by how much — largely depends on the type of debt relief you take advantage of. Debt consolidation may have a short-term negative impact on your score, while the detrimental effects debt settlement can have on credit scores could last significantly longer.
On the other hand, if you can’t afford to make your minimum payments, you may already have a low credit score. The good news is that once you pay off your debt, you’ll have a fresh foundation to rebuild your credit on.
Is debt relief worth it?
If making your minimum payments is a breeze and you even send extra money to your creditors from time to time, debt relief probably isn’t going to be worth it for you. On the other hand, if you’re struggling to make ends meet and need a clear way out of debt to achieve financial stability, debt relief is likely a good fit.
The bottom Line
It can be stressful if you’re unable to make your minimum credit card payments, but you’re not out of options. It may be possible for you to pay your debts off faster than you thought with a little professional guidance. Reach out to a debt relief specialist today to start putting your credit card debt behind you for good.
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There are many reasons to consider investing in gold right now. With high inflation, geopolitical unrest and the coming election, having a healthy safe haven allocation in your investment portfolio makes sense. And, gold is an effective way to protect your portfolio from risk.
Gold’s price has seen strong growth this year, too. After starting the year off at $2,063.73, the price of gold climbed to $2,439.98 by May 20. But that price has since cooled. Today, gold is trading at around $2,380.00 per ounce. Although that’s significantly lower than gold’s May record high, it still represents more than 15% growth year-to-date.
While there are many reasons to invest in gold, it’s important to make the right moves when you do, particularly this July.
Invest in gold now to give your portfolio a boost.
3 gold investing moves to boost your portfolio this July
You can use gold to improve your portfolio’s performance in a few ways this July. Some of the most effective include:
Focus on allocation
Gold’s price has grown quite a bit this year. And, the safe haven properties of the precious metal are valuable given the current economic, political and geopolitical climates. So, you may want to add quite a bit of the yellow metal to your portfolio. But, you shouldn’t overdo your investment.
While gold is an attractive safe haven, the stock market’s performance has been strong this year, too – the S&P 500 is up around 17% year-to-date. And, it’s important to balance your portfolio with a healthy mix of safe havens and traditional assets like stocks and bonds.
Most experts say you shouldn’t allocate more than 10% of your portfolio assets to gold. Some suggest that a 5% gold allocation is more reasonable. So, consider your investment goals, the other assets in your portfolio and how gold relates to those assets when choosing your allocation. But, in any case, keep your holdings to a maximum of 10% of your portfolio’s assets.
Take advantage of gold’s safe haven and inflation protection properties today.
Invest now
Gold’s price is down but it may not stay there for long. Gold’s price tends to go through cycles. Upward cycles are typically followed by downward cycles and vice versa. Based on the cyclical nature of gold’s price, there are two reasons why waiting to make your investment could be a mistake:
- The discount could disappear: If you buy gold now, you’ll do so at a discount to its most recent high. But, if you wait too long, that discount could disappear.
- You could be priced out: Gold isn’t a cheap commodity, even considering the current discount. And, if history is any indication, gold’s price will continue to produce long-term gains – regardless of the short-term cycles it experiences. So, if you wait too long, gold’s price could become cost-prohibitive – making it difficult to add the commodity to your portfolio later.
So, add gold to your portfolio now to take advantage of the current discount in its price and avoid any issues with being priced out of the market later.
Look for discounted options
Gold’s spot price is typically the price that’s quoted online. But, that’s not usually the price you pay when you purchase the commodity. In most cases, dealers add a markup to the spot price to generate a profit. So, it’s possible to overpay for the commodity if you’re not careful – but it’s also possible to find discounted options.
Many online gold dealers buy second-hand precious metals and resell them at a discount to their freshly-minted counterparts. And, while these products may have some imperfections and may not be the particular design you want, their value is in the weight of the gold they’re made with. So, when you look for these discounts, you could cut the cost of your gold investment while you take advantage of the benefits of adding the precious metal to your portfolio.
The bottom line
Gold is a compelling asset with valuable inflation protection and safe haven qualities. But, when you invest invest in the precious metal this July, it’s a good idea to make your investment strategically. In particular, invest now and be sure that when you do, you maintain a healthy allocation representing 10% or less of your portfolio’s value. Also, look for opportunities to buy gold at a discount. Doing so could cut the cost of your investment. Compare your options among leading gold dealers now.
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