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Why you should consider credit card debt forgiveness before June
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Have you heard about credit card debt forgiveness? These programs work with your lenders to cut your credit card balances in an attempt to offer you relief from overwhelming debt. And, if you owe $7,500 or more in credit card debt and you’re having a hard time making your payments, you may be a strong candidate for forgiveness.
If that’s the case for you, you may want to act quickly. After all, overwhelming credit card debt doesn’t typically get rid of itself and the longer you stay in debt, the more money it will cost you. In fact, there are multiple timely reasons why it may be wise to enroll in a debt forgiveness program before June.
Find out how much relief a credit card debt forgiveness program can provide now.
Why you should consider credit card debt forgiveness before June
Here are three reasons why you should consider a credit card debt forgiveness program before June:
Interest rates could rise
April’s inflation data showed that price growth had cooled when compared to March. April’s inflation rate was 3.4%, down from the 3.5% inflation rate in March. But, April still saw price growth at a much faster rate than the Federal Reserve would like to see. That could pose a problem for those who are already having a hard time making their credit card minimum payments.
That’s because the Federal Reserve’s response to high inflation is typically to increase its federal funds rate. That may be bad news for borrowers as any hikes to the federal funds rate could result in higher interest rates and minimum payments on credit cards and other lending products. But, if you start your credit card debt forgiveness journey now, you may be able to avoid any potentially higher interest rates and payments in the future.
Avoid future rate hikes and growing credit card payments with credit card debt forgiveness today.
The increasing cost of living may continue
Inflation doesn’t just have an impact on the monthly cost of your credit card debt, it plays a role in the cost of goods and services too. So, while high inflation may push the cost of credit card debt up in the future, it has already increased the cost of living – a trend that may continue.
That means your credit card debt may become even more challenging to deal with if you don’t do something to address it now. After all, rising prices for things like food, gas, shelter and more will only make it more difficult to make your credit card payments on time.
“As cost of living and inflation continues to impact Americans, a debt forgiveness program can help,” explains Dawn-Marie Joseph, founder of the financial planning firm, Estate Planning & Preservation. After all, these programs may help reduce your monthly payments and the total amount of money you owe to credit card companies. “These are good programs for someone who has difficulty keeping up with high payments, is being hit with high fees, and has several credit cards with revolving debt.”
Your financial hardship could result in bankruptcy if left unchecked
If you’re dealing with financial hardship, that hardship may only get worse if you leave it unchecked. With prices continually rising and high interest rates pushing credit card minimum payments up, it may only get harder to make ends meet. And, that could eventually result in bankruptcy.
On the other hand, if you enroll in a debt forgiveness program now, you could realize a meaningful reduction in the amount of money you need to pay toward your credit card debt each month. In turn, lower monthly payments could mean you have more money in your budget to address the higher cost of goods and services, potentially helping you avert bankruptcy.
The bottom line
As the cost of living rises and high interest rates and minimum payments weigh on those with credit card debt, credit card debt forgiveness is becoming an attractive option for many. These programs have the potential to cut the cost of your debt, making it easier to absorb increasing costs elsewhere. And, considering the potential for a rate hike in the future, it may be wise to enroll in one of these programs as soon as possible. Chat with an expert about your options now.
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If you’re tired of making monthly credit card payments only to see minimal reductions in your balances then you may be looking into debt relief options. Credit card debt forgiveness is one to consider.
Debt forgiveness companies aim to help you save money and get out of debt faster through negotiations. If those negotiations are successful, your credit card companies may forgive a percentage of your balances, which could provide the relief you’re looking for.
But, like all debt relief options, credit card debt forgiveness isn’t a one-size-fits-all solution. So, what are some signs that credit card debt forgiveness may not work for you? That’s what we will detail below.
Let a debt relief expert help you put your credit card debt behind you now.
4 signs credit card debt forgiveness may not work for you
While credit card debt forgiveness programs are a good fit for some borrowers, they aren’t perfect for everyone. Here are a few signs that credit card debt forgiveness may not work for you:
You always make your payments on time
Credit card debt forgiveness is typically designed for borrowers who can’t consistently make minimum payments. So, if you make your credit card payments on time, every time, that may be a sign that these programs aren’t a good fit for you.
There are a wide range of debt relief options. And, credit card debt forgiveness is a more extreme option that can come with more significant repercussions than others. So, if you can afford to make your monthly payments on time – even if it’s not always comfortable – other debt relief solutions may be a better fit.
Find alternatives to credit card debt settlement here.
You don’t have enough credit card debt
Most credit card debt forgiveness companies require minimum debt amounts to qualify for their services. For example, you’ll need at least $10,000 in credit card debt to qualify for the services Accredited Debt Relief provides and Freedom Debt Relief and National Debt Relief both impose $7,500 minimums. If you have under $7,500 in credit card debt, you may be hard-pressed to find a service provider to work with.
You already have a judgment
If you forego payments to your credit card companies for too long, they may sue you for the money you owe. And, if your credit card companies sell your debt to a debt collector, that collector may take you to court, too.
If you lose the case, your credit card companies, or the debt collectors they’ve sold your debt to, may win judgments against you. Those judgments can give them leverage, making them less likely to negotiate what you owe. While you may be able to settle a debt following a judgment against you, doing so may be more difficult. So, if you already have one or more judgments against you and can’t afford to pay the debt back, bankruptcy may be a better option.
You’re considering a large purchase
Credit card debt forgiveness may not be your best debt relief option if you want to make a large purchase, like a home or car. That’s because these solutions can harm your credit score, making it difficult to access new loans.
“Asking for payment relief or debt forgiveness should be given serious consideration prior to taking action,” explains Michael Broughton, founder and CEO of the credit-building app, ALTRO. “Once you request a change to terms or a lower payment, your credit could be impacted and the chances that you will be able to get loans for other, unrelated items can be severely diminished.”
The bottom line
Credit card debt forgiveness is a fitting solution for many people – especially if they can’t afford their minimum payments. But, it’s not the best fit for everyone. You may want to consider other options if you always make your payments on time, don’t have enough credit card debt, already have judgments against you or you’re in the market for a large purchase. Chat with an expert about your debt relief options now.
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