Prices are rising. That’s not only true for consumer goods and services, it’s also true in terms of the cost of borrowing money. And, if you have debt with variable interest rates – like credit cards and some other loans – you may be dealing with higher minimum payments than you’re used to. Against a backdrop of rising costs, it’s becoming more difficult for some consumers to make ends meet. Especially for those with high interest debt. 

If that’s true for you, you should pursue a debt relief service this May. Debt relief programs may be able to help you cut the cost of your debts, making it easier to financially navigate today’s inflationary environment. And now is an opportune time to pursue this option. Below, we’ll break down why.

Find out how a debt relief service can help now. 

3 reasons to pursue debt relief this May

Here are three reasons you should pursue debt relief this May: 

The Fed held rates steady

The most recent Federal Open Market Committee (FOMC) meeting concluded yesterday. That’s the meeting where the Federal Reserve makes monetary policy decisions – like whether or not to change its benchmark federal funds rate. Following the FOMC meeting, the Fed released a statement saying that it would keep its federal funds rate target at its current level, a 23-year high.

Since the federal funds rate is the benchmark many financial institutions use to determine consumer interest rates, that’s bad news for borrowers. It means that interest rates on variable-rate debts may not fall any time soon. In turn, the payments on these debts will remain elevated.

So, if you’re struggling to make your minimum payments, you should pursue debt relief this May. In doing so, you could gain access to lower interest rates and minimum payments – relieving some of the burden of today’s elevated rates.

Tap into lower rates and payments with a debt relief service today. 

Persistent inflation may increase the chances of a rate hike

“Looking into debt relief during inflationary times is understandable,” explains Dutch Mendenhall, CEO and founder of RADD Companies, a family of companies that provide financial and investment services. “Debt relief services can negotiate better terms, making debts more manageable amidst rising costs.”

That’s important because rising costs aren’t showing many signs of easing. As inflation continues to outpace the Federal Reserve’s 2% target, the cost of debt may rise further. After all, rate hikes are the Federal Reserve’s preferred way to combat inflation. 

However, if you enroll in a debt relief service this May, your provider will typically negotiate better rates and terms on your behalf. So, taking advantage of debt relief could shield you from the potential for higher interest rates on your debt in the future. 

The longer you wait, the more your debt will cost you

Debt can be costly. And interest rates typically make up the majority of that cost. But, interest is a time-based expense. That means, the longer you stay in debt, the more interest you’ll usually pay as you pay it off. 

But, if you sign up for a debt relief service this May, you could cut the cost of your debt. Here’s how: 

• Time: Since being in debt longer means you’ll typically spend more money to get out of it, enrolling in a debt relief service that speeds up the payoff process could lead to savings. 
• Interest reduction: Debt relief services are usually able to reduce your interest rates, either through negotiations or with a debt consolidation loan. So, enrolling in a debt relief program this May could set the stage for substantial interest savings. 

The bottom line

Dealing with mounting debt as prices and interest rates continue to rise can be stressful. But a debt relief service may help you alleviate that stress. Considering the Federal Reserve’s decision to hold its benchmark rate steady, the persistent inflation we’ve experienced thus far in 2024 and the fact that debt costs more the longer you have it, it’s a wise idea to pursue debt relief this May. Compare leading debt relief options now. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.